Alter the Point of Delivery
A fourth bargaining chip is altering the point of delivery. Usually the terms require the seller to deliver the goods to a location specified by the buyer, so the cost of transportation is almost always carried by the seller. The contract price could be reduced if a closer, more convenient location was used. The point of delivery could be the seller's shipping dock. That would completely eliminate transportation costs as the buyer would take possession of the goods as soon as they were on the truck.
Mel:We just finished running the numbers and I think we came up with a pretty good price.
Bill:Great, let's see.
Mel:Here you go.
As you can see, this assumes delivery anywhere within the metropolitan area. If we go outside the area, we have to use a different transportation company and the expense may increase dramatically.
We can keep the price that low because we're using the company truck to deliver your goods.
Bill:We did have something come up at our local plant and we won't be able to use the goods there.
The delivery point's been changed to a place about a hundred miles outside of the metropolitan are.
Mel:That's going to screw up our tranportation figures,we'll need another day to figure out the new delivery point and all the other costs.
Bill:I don't think so.
Not if you have the transportation costs computed separately like I asked.
Mel:We do. Look, on the bottom of page eight.
Bill:Right, here it is.
And this figure includes all transportation costs. Is that right?
Bill:Good, then , here's the deal.
We draw a line through page eight and eliminate it and all the transportation costs from the contract.
We assume resporsibility for the goods as soon as you load them on to the truck we provide.
Mel:So we load your trucks for free?
Bill:It's no different than if your truck were delayed a day and you had to store the goods until it was free.
Mel:Right,we can do that.
Bill:Then , if you're agreed,we have a deal.
Mel:One last point, Bill.
We need you to park a trailer at our dock one week prior to the shipping date so we can load it as the goods come off the production line.
Bill:Okay,but you're reponsible for security until the truck is driven off the lot.
Mel:No problem. It will stay at the dock locked up indoors.
Bill:Sounds like a bell ringer to me.
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