You’re not just moving glass or brick—you’re moving margin. And if freight eats it, you’re giving it away.
Freight and accessorial costs have become margin killers for distributors of glass, ceramics, and refractories. From liftgate fees to residential delivery surcharges, costs add up fast—often invisibly.
Historically, many North American distributors absorbed these charges to maintain customer satisfaction. But in today’s freight climate—with diesel surcharges, driver shortages, and escalating LTL rates—what you don’t recover, you subsidize. And that’s a losing game.
The Hidden Drain on Margin
Glass and ceramic products are notoriously expensive to ship:
Oversized laminated glass requires crates, padding, and flatbed delivery.
Kiln shelves and bricks can’t be double-stacked without risk of breakage.
Pallet weights often exceed standard thresholds, triggering lift fees.
Even something as simple as an inside delivery request can add $90 to an invoice—wiping out your profit if left unbilled.
Now multiply that across hundreds of orders per month, and you’re staring at six figures in lost recovery potential.
Building a Recovery Model That Sticks
1. Codify Accessorials in Your T&Cs
First, make sure your terms and conditions clearly define what freight and service charges may be applied—and when. Examples include:
Fuel surcharges
Wait time fees
Redelivery charges
Packaging surcharges for fragile or specialty items
2. Use a Transparent Rate Card
Develop a standardized accessorial rate card, and train your sales and CSR teams on how to apply it. For instance:
Inside delivery: $75
Liftgate use: $50
Residential delivery: $90
This removes ambiguity and supports consistent billing.
3. Embed Recovery Into Quoting Systems
ERP systems or quoting tools should automatically flag accessorials based on product type and delivery zip code. No manual “eyeballing.”
4. Consider Freight Rebates Instead of Free Shipping
Rather than discounting freight entirely, offer rebates based on invoice value or frequency. E.g.:
“Orders over $2,000 receive $75 freight rebate.”
This encourages volume while preserving transparency.
5. Educate Customers—Not Just Sales Reps
A key mistake is hiding these costs. When buyers understand that certain items (e.g., fragile alumina parts) require extra packaging or handling, they’re often more receptive to charges—especially if they see the breakdown in quotes.
6. Track Recovery Ratios
Use this simple KPI:
Freight/Accessorial Revenue ÷ Freight/Accessorial Cost
A ratio under 1.0 means you’re losing money. The best-run distributors aim for a minimum recovery ratio of 1.1–1.3.
It’s Not Just Freight—It’s Margin Engineering
Smart distributors treat freight like inventory: It must be controlled, priced, and optimized. That means:
Bundling deliveries by geography
Charging appropriately for redelivery or missed windows
Incentivizing dock availability from clients
:
Every pallet you ship is a margin opportunity—or a margin risk. Glass, ceramic, and refractory distributors who recover freight and accessorials effectively not only preserve profitability—they gain pricing power and operational control. Don’t leave margin on the loading dock.
