1. Shipping costs. We pelletize shipments to our distributors to reduce costs. Moving paper (which can be heavy) from here to there is a significant expense that our distributors bear and amortize over many customers.
2. Brokerage fees. Moving freight overseas requires the assistance of a customs broker. These specialists take a commission on the net worth of the shipment. Non-palletized orders encounter significant minimum flat fees. So, when we ship individual orders overseas, you bear the brunt of the entire brokerage fee. (Not cheap!)
3. Cost of capital. Each distributor ties up a lot of cash to finance their inventory. They assume this cost so when you call they have the item in stock. It's hard to put a price tag on convenience, but it's part of the price difference you see. |
