Not sure if all sysco houses are doing it but the sysco house in Atlanta is now charging $7.00 dollars and invoice for “fuel charges” as if the cheese and flour prices were not bad enough!
Roma charges us 10.00 per delivery. I don’t think it is too unreasonable wth diesel fuel at $4.50 a gallon here.
Here in Chicago Sysco started this week also. Must be nation wide.
We use Reinhart out of Pittsburgh and they charge us a fuel surcharge as well.
They charge .04 per case.
We’re at a $9.00 delivery charge.
It was around $4 but has jumped to $9 over the last year.
Don’t most of the food distributors sell to us on a percentage over cost basis? Lets assume they sell to us for a 10% markup over their cost. When diesel was $2.00 a gallon, flour cost them $9.00 per bag. They sold it to us for $9.90 and made 90 cents per bag. Now that diesel is $4.00 per gallon, they pay $26.00 per bag of flour and sell to us for $28.60 profiting $2.60 per bag.
Basically they are using the current press about high fuel prices to bleed you of every dollar they can. In this environment where nearly every item we purchase has increased in price, they profit more from us than ever. Tell your salesman if they won’t remove the surcharge you will consider switching to a new supplier and I would bet they will drop it in a heartbeat. $7 per drop X 2 drops per week $728 per year. Definatly time to sit down with your salesman.
We will have to pay either way soooo what is nice about the fuel charge is it will go down when gas goes down. If they just add it to their prices it would never go down.
We use US and pay 4.95 per delivery
If all the food distributors in the area are charging a surcharge . . . who am I going to change to? Also, does it really matter if they surcharge me for fuel or increase their food pricing? I would speculate that most of us are not on cost plus percent in terms of food prices. Fuel surcharges are just a way to recover some unexpected operational costs (while customers are going under left and right, leaving unpaid balances) to keep their margins and bottom line . . . in line.
It is not unlike some of the discussions we have had here about adding a surcharge while the cheese and flour spikes are so high. We would do that rather than redo our menus and printing. Same with them. Nothing good for us in paying surcharges . . . . unless we are getting huge numbers of cases each drop.
We are not yet paying delivery surcharges in West GA with USFoodservice. I hope they don’t go that route.
We just got the charge last week for the first time. We’re getting charged $5.00 per truck.
I am on a cost-plus contract, so Sysco doesn’t really have any other way to recoup their additional fuel costs. I don’t have much of a problem with it, as I think we all understand why it’s there.
I also pay a fuel surcharge. My prices have only gone up on flour so far as my salesman explained they could try to hide the cost in the product by raising prices but prefere to keep prices the same and adjust the fuel surcharge to reflect the cost of fuel.
the supplier adds a fuel charge in an effort to recoup some of the costs of fuel…
I would guess most Food service semis travel 200 + plus until their truck is empty…maybe less in metro areas…you have to understand the distributors cost to “service” the customer due to fuel has indeed increased as well…at a higher rate…with higher costs to the distibutor from the manufacturer…the suppliers margins have decreased to avoid the pizzeria owner/restaurant owner from trying to show on price…
in other words - = suppliers lower margin to save the business at risk
sysco started last week with a $7.00 fuel surcharge. bari/paparella charges me 12.63 per truck but i told my rep that i wont pay it because nobody else charged me at the time. i hope he doesnt find out that sysco is charging now my veg company doesnt charge…yet…
I am not so much against the surcharge as long as it is clear that there are good reasons for it. What disturbs me is the inconsistency. One or our suppliers charges between 9.50 and 11.50 per drop. Another supplier, providing the same type of merchandise, is charging 6.50 to 7.50 per drop. That much of a difference is causing me to rethink our purchasing. We like to remain loyal and not jump around on a frequent basis but that is a lot of money when we consider multiple locations.
But there is no question that it is much more expensive to put a truck on the road now. We also have a small wholesale operation with two and sometimes three trucks. Every repair, every tire, etc is up in cost, it is not just the fuel. And of course, here in California, minimum wage has been increased twice in two years so naturally employees up the line got increases in every business. Just what the unions wanted so that they can then use the minimum wage increase to put pressure on business for higher union wages. Those union guys just love the politicians don’t they? Reminds me again and again of that newspaper publisher years ago in New Hampshire who said that the problem with government is that all the good minds have gone into business leaving the running of government to fools.
Have you guys heard about the state assemblyman here in Calif who has proposed a 1500% tax increase on a six pack of beer? One of the beer companies said that would push the tax on a keg up $89.00. Do these guys know how to do anything besides think of ways to increase taxes?
I get from Sysco also , $7 delivery charge, and did you notice they tax you on the delivery charge, at least they did on my last 2 orders
Learned a couple years ago that delivery charges are taxable. If you are not doing so you are liable -unless that’s just a California thing. Used to be that only goods were taxed, not services. We get taxed from our graphic designers as well.
Businesses have costs and those costs get passed along. For my part, I don’t care whether the company calls it price, delivery charge or CEO bonus. It is all a buck to me. I would look at the costs between differing vendors IN TOTAL and make decisions there.
I would also look at ways to go from two deliveries a week with a vendor down to one to cut the charges.
what state are you in? in GA we are not taxed on the delivery charge…
Bingo, thats what I did, I cut my deliverys in to every two weeks, meens extra storage space but I think I am liking this