Home > Uncategorized > Send The Light Ends Free Freight Program for Canadian Stores

Send The Light Ends Free Freight Program for Canadian Stores

Send the Light Canadian StoresIt was bound to happen sooner or later, but for stores conscious of their bottom line, later might have seemed better. Send the Light distribution is terminating its free freight program for stores in Canada, a program that offered 1-3 day service on orders of 15 units or more with 100% of shipping charges deductible if stores paid by the 10th of the following month.  Stores used the U.S. supplier to access thousands of books from small publishers, including some that are exclusive with Send the Light through its Advocate Distribution subsidiary; as well as getting titles where the Canadian distributor was out of stock, or the customer needed it yesterday. The company allows retailers to receive parcels containing a wide variety of product in a single box including everything from Bibles to jewelry to apparel to auto emblems.

Instead, borrowing a page from Ingram (Spring Arbor), the company is going with a flat rate surcharge of 6%, but ending the short discount that has existed on products from Baker Book Group (Bethany House, Revell, etc.) and Tyndale House.

In a letter to stores on Monday, Send the Light Vice President of Sales and Marketing Mark Phillips announced the new arrangement takes effect on Friday.

When your gross margin after expenses is only 8-10%, a 6% surcharge from any supplier is going to effect your store’s viability. The shorter discount on Baker and Tyndale kept us loyal to David C. Cook Canada and Foundation Distributing respectively, though our Tyndale ordering is only a fraction of what it was 2-3 years ago. It also made Ingram — with an 8.9% surcharge in our case — a supplier of last resort. So now while we might again be inclined to help a customer with a rush order of Cook and Tyndale product — or any title for that matter — through Send the Light, it now matters little if they don’t have it but Ingram does. In fact, the differentiation between Send the Light and Ingram for us now disappears into a 2.9% variance.

(Obtaining your regular stock through U.S. suppliers however in some cases violates the Canadian distributors’ distribution rights and Christian Book Shop Talk is not herein suggesting this practice. If you don’t like it when your customers buy from Amazon, it’s the same principle: We need to keep a strong Canadian distribution channel.)

Not addressed in the letter was the issue of early pay discounts (1%) or whether or not there remains any incentive for Canadian stores to pay on time, as accounts had to be settled by the 10th of the month following to deduct the freight.  Requesting clarification on this, in a followup letter to us, Send the Light Vice President Terry Draughton simply restated the change is only in terms of the surcharge, therefore one must infer that invoices will be printed with full freight costs, deductible if paid within terms.

This is a developing story. Updates will be added here later in the week.

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Your Response (Value-Added Comments Only)

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: