Increase to Prepaid Freight Minimum
Dear Valued Customer,
I hope you are healthy and prospects of finishing 2020 are planned in optimism and poised for prosperity. This letter is to announce changes to our prepaid freight minimums as a result of a policy change from Fed Ex and UPS Ground.
Since the inception of Everkem, we have proven value through our very low prepaid freight minimum starting at only 4 cases (48 units) of combined product. Traditionally, we have over-packed our 12 pack cases in a 4 pack master which has a total weight range between 40 and 60 lbs. depending on the product mix. This was originally designed to be under the Fed Ex and UPS maximum weight threshold of 70 lbs. Using the 4 pack master has allowed us to maintain an efficient freight cost/ unit which has permitted us to provide competitive pricing for very low prepaid freight minimums.
Due to recently announced policy changes for Fed Ex and UPS, they are reducing their maximum weight threshold from 70 lbs. down to 50 lbs. per individual package. Any package over 50 lbs. will incur a $25 fee which will result in a $0.52/ unit cost for our 4 pack master shipment.
At this time, over 40% of our ground shipments are over 50 lbs. and we realize that we can and will not pass on the $0.52/ unit increase, nor can we afford to absorb the increase into our price. This shipment policy change will not only affect our 4 pack masters, but all orders fewer than 30 case quantities that are shipped through Fed Ex or UPS ground.
Effective June 1st, Everkem will be increasing our Prepaid Freight Minimum from 4 cases (48 units) to 6 cases (72 units) of combined products. Additionally, we will be shipping in increments of 3 cases (36 units) for most caulk products rather than our traditional 4 pack master for all orders of less than 24 cases.
Thank you very much and please contact us with any questions, feedback or additional requests.
Sincerely,
Jason Lynch
