Update: Resellers question Ingram freight increase

CRN reported the distributor announced a nine percent increase in freight charges, as well as an additional $5 charge on ‘Drop Ship’ orders.

Guy Freeland, vice president and managing director of Ingram Australia told CRN that the distributor is sensitive to cost increases for resellers and Ingram has been managing the increased cost, mainly from rising fuel prices, internally. The last raise in freight was May 2007.

“The average rate charge we might be talking is $12 to $15 and we are saying we need to increase the cost by nine percent on that, so it’s a relatively modest amount of money,” said Freeland.

However resellers were less than impressed with the increase and several commented on the situation.

Ming Wa director at PC Market felt the increases were a bit unfair.

“I think it’s a little bit too expensive for the freight. I understand it must be feeling the pinch with increase in fuel prices and couriers are putting up the prices of deliveries.

"But we buy everything from Ingram and we will be stuck with a loss because our customers don’t want to pay high prices for shipping.

"Unless they come and pick up products then customers aren’t willing to pay an extra for products to be shipped out to them.

"[The charges] are quite a lot when you compare with some of the margins we make on goods. We don’t make nine percent margin on some products we sell, so I think it’s a bit unfair.

"It’s one of those things we have to find the cheapest way to save money for us. We won’t be buying from Ingram; we will be sourcing locally and picking up from local distributors as much as possible.

Eric Kwon manager at Tri Benedict said while he wasn’t happy with Ingram’s decision there wasn’t much he could do about it.

“I think it sucks. Nobody wants to pay anymore money then they have to. But companies have to survive.

“At the end of the day Ingram has always taken care of us. But the small dealer will suffer – I think it will affect the Internet guys, which is good for us because their prices are unreasonable.

“You could whinge about anything Ingram’s increase is long coming.”

Michael Felder, director at IT Medic, said the increase was unfortunate, but he can understand why it was doing it.

“[Ingram] did reasonably well keeping the lid on tight for this long.

“We do large implementations and our orders aren’t excessive. However in between the larger implementation, we also do buy smaller quantities.

“You just have to be smarter with our orders and say instead of ordering everything in three different orders do it in one hit.

“By the same token Ingram has an automated pick ordering system and it’s not green. I ordered three things during the same period and I received three things during in big box for small packages.

“It has to become more efficient, bundle up the deliveries that would be more efficient.”

Ingram Micro was not available for comment as this story went online.

CRN readers have not stopped running comments on CRN's original story. Read the original story and reader's heated comments at https://www.techpartner.news/News/86358,ingram-increases-freight-charges-and-improves-delivery-service.aspx.

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