SANTA FE, NM (BRAIN) — BTI is expanding its free shipping incentive with a new freight program for 2013. The company's goal is to reduce dealer costs and get shipments to more dealers in two days or less.
The distributor is "subsidizing" UPS shipping costs by charging the next-lower rates for each UPS service level. So for example, UPS Next Day Air shipments are charged the 2 Day Air rates.
Additional discounts apply as the order value increases. For example at $600 order value, 4 percent of the order amount is applied toward shipping. The allowances can exceed the shipping cost, meaning a dealer will pay little or no freight to ship by air.
BTI also guarantees free shipping on its standard shipping service in the continental U.S. regardless of size or weight.
BTI vice president Preston Martin said the move is the result of a decision to consolidate all its warehousing in Santa Fe, rather than opening regional warehouses.
"We looked at the real costs of opening satellite warehouses and the challenges of managing multiple inventories. In considering the operational complexity, the added overhead costs and the expense for split shipments, we reached the conclusion that subsidizing air freight was our best option to improve speed of delivery while remaining in a single location," Martin said.