Provide Your Consumers Deeper Discounts Through Kitting
Kitting Assembly is offered by third party warehouses and it can often save their business clients to save a bit of cash. The term kitting represents the act of assembling orders in packages before they have actually been requested. This is the opposite of the way merchandise is usually packaged, which is as it is ordered.
In order to truly get some savings through Kitting Assembly you need to be able to determine which items client will normally order in a package. If you have a "buy one, get one free" sale going on for example, your business is most likely going to be shipping those two items together frequently. The business must make a prediction regarding how many of these packages they will sale, have those packaged, and save some cash.
Companies are generally able to increase earnings through Kitting Assembly for two main reasons. For one thing, the warehousing company will generally request less money to prepare pre-packaged sets. This is because they can be certain that those jobs are in the bag, unlike the typically set up where they are waiting for an order to come through before they get paid for handling services.
The next way that businesses save through this route is shipping. The costs that go along with mailing are often much less when you ship two items together, as opposed to shipping them separately. Therefore, if you are offering specials that entice consumers to order two items together you are going to be able to save on your post and packaging expenses. If it is typically $8 to ship and handle one object and you are offering it free with the purchase of another, you can charge your normal shipping fees, but mail them together. So a profit is being made, as a result of the cheaper handling fees and the cheaper shipping fees.
Although every company that tries this is not going to save money in the same ways, it is still something to take into consideration. Even if you don't have a whole lot of clients yet or you can't offer a sale, kitting can still bring up some savings.
If you are looking for a way to save a little bit of cash on your fulfillment needs, then consider Kitting Assembly as an option. Though the recordkeeping is somewhat more complex than that involved in other practices, it can be effortlessly managed with a good bookkeeper and excellent planning.
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