Some of the wholesalers offer free shipping to the retailers on large
orders (usually $3,000.00 or more). The bigger companies can place
orders that are large enough to meet that, and they often hold out on
ordering until they need enough stuff to qualify for it. This also
allows them to take advantage of quantity discounts (if one of an item
costs $10, 12 or more of the same item might be dropped to $8 each).
So, by keeping stuff on backorder rather than ordering every time they
need something, they get free shipping and better pricing.
The flip side of it is how they translate that to the customer. I had
issues with OPG because they would ship backordered items as they came
in, and charge their minimum $8 shipping (or more) each time. So, you
might get a $2 engine decal in the mail one day with a $8 shipping
charge attached to it. As a reseller, I couldn't make that work and
eventually decided to completely stop dealing with them.
Quoting Jim Sullivan <[EMAIL PROTECTED]>:
Larry, I wasn't aware of the shipping charge issues that are being
raised, but I know in the past someone complained about everything
is always on backorder. I personally haven't had a problem with
items being backordered.
I always check 2-3 of the major suppliers for price. So the prices
couldn't have been that bad.
Just my .02
Jim
