![]() ![]() It doesn’t make sense to ship an order if the shipping costs exceed that of the order. Case counts are generally housed in a different section of the warehouse than individual SKUS, so breaking a carton results in additional labor costs.Īnother reason distributors use dollar minimums is just plain economics. SKU minimums can be justified by the distributor because it’s easier to ship a box lot as opposed to breaking the seal on a carton, parsing out individual items, and dealing with the remaining count in a separate warehouse location. Smaller retailers have said for years that they are more than able to adhere to dollar minimums, but when it comes to SKU minimums, it becomes a common complaint that SKU minimums need to be lowered or eliminated. ![]() Minimums can limit your ability to grow your selection when you are forced to buy a 24 case count of a single SKU. Testing new products or entering new lines of products may be the biggest problem. Meeting a dollar amount from the buyer is an easy thing to accomplish when ordering to an open-to-buy, however, when the distributor requires a 24 or 30 count purchase per SKU, it becomes very difficult to expand your selection when you are required to increase your inventory arbitrarily as a result of a minimum. Dollar minimums can run as low as $100.00 per order, but the problem comes in with SKU minimums. Most importantly, it allows them to require the retail buyer to purchase a minimum amount of inventory in order for it to ship. Wholesalers and distributors have minimums in place for a variety of reasons. Minimums are a minimum amount of product you are required to purchase – either in dollar amount or in SKU count – from either the wholesaler or direct distributor. Minimums If you have worked in the retail industry, you know what they are. ![]()
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