In the distribution of heavy, fragile, and custom materials, freight can make or break trust. Here’s how to handle it.
For glass, ceramic, and refractory distributors, freight is rarely an afterthought. Shipping 96” glass panels, crated kiln furniture, or palletized castables isn’t just costly—it’s complex. Yet many distributors still struggle with how to present freight charges on quotes and invoices.
Should freight be buried in the unit price? Broken out separately? Absorbed to maintain simplicity? These decisions don’t just affect P&L—they shape the customer experience.
Let’s break down the two most common freight models—and the tradeoffs they carry.
Freight-In Pricing: “It’s All Baked In”
In this model, shipping costs are incorporated directly into the unit price of each SKU. The customer sees one number per item. No surprises.
Pros:
Clean and simple. Customers like single-line pricing, especially in bids.
Easier internal quoting. No need to estimate logistics separately.
Avoids freight disputes. The cost is blended—no friction post-delivery.
Cons:
Opaque cost structure. Customers don’t know what part of the price is freight vs. product.
Margin gets squeezed. Freight cost fluctuations hit your bottom line unless prices are constantly updated.
Incentivizes inefficiency. There’s little motivation for customers to consolidate orders or plan smarter.
Freight-Out Pricing: “Here’s What You’re Really Paying For”
Freight-out pricing separates product cost from delivery cost. It appears as a distinct line on the invoice or quote.
Pros:
Full transparency. Customers see what they’re paying for and why.
Encourages smarter order planning. Buyers may bundle shipments to lower per-unit freight costs.
Allows pass-through. Distributors can recover fuel surcharges or expedited fees without distorting product pricing.
Cons:
Can feel like “nickel-and-diming.” Some buyers push back on visible fees.
Adds quoting complexity. Teams must estimate freight per job, especially for LTL or multi-drop runs.
Variable margins. Misquoted freight can eat into profit fast.
What Distributors Are Doing Now
A growing number of North American distributors are shifting toward hybrid freight models:
Freight-in on standard SKUs (e.g., ¼” clear glass, standard ceramic tiles) where quoting speed matters most.
Freight-out on custom or bulk orders where job size and complexity vary.
This balances transparency with simplicity. For example, a ceramic distributor may include freight for standard crate loads of cordierite shelves but break it out for customized, low-density insulation panels shipped to multiple sites.
Some use thresholds:
Orders under $2,500 = Freight-out
Orders over $2,500 = Free freight (baked-in)
Others tie freight strategy to customer segment. OEMs with fixed routes get built-in freight. Contractors with dynamic sites get line-item visibility.
The Transparency Edge
Ultimately, what customers care about is fairness. Distributors who proactively explain their freight model, and offer options—like consolidated shipping or delivery windows—earn trust.
:
There’s no one-size-fits-all answer. But in the world of heavy, fragile, and high-value materials, transparent freight policies can be a key differentiator. Whether you choose freight-in, freight-out, or a blend, the future belongs to distributors who treat logistics not as a cost center—but as a trust-builder.
