1. Shipping costs. We palletize 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 internationally 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.
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 product in stock. It's hard to put a price tag on convenience, but it's part of the price difference you see. |