#Immediacy on speech making

The result, apart from higher cost, was only a very limited improvement ...

The result, apart from higher cost, was only a very limited improvement in service since the total elapsed time from the moment that the customer mailed his order to producing and delivering the product was so great that a day or two saved in delivery made little or no difference in the mind of the customer. Wendy, on the other hand; who made and sold wicker-ware products, lost customers due to irregular deliveries.

'I found that the cost of my small van was becoming an increasing burden and every time petrol went up a penny or two I saw-my profits eroded.

A mate suggested using a public carrier, but I felt that this would be an admission of defeat. Instead I grouped my deliveries together, saving them up until I had a whole vanload. This certainly saved petrol and driving time but I lost a lot of customers who had come to depend on regular deliveries.' Wendy had failed to distinguish between fast delivery and regular delivery when thinking about the service her customers wanted. As one of them said to her; 'I am more concerned with reliably knowing when the goods will arrive than how quickly they will arrive.' It should not be forgotten that a dependable�-deliver service enables customers to cut their stock-holding costs.

Distribution as a 'Positive Force' Before looking in some detail into ways and means of reducing or saving distribution costs, it is worth considering one more 'conceptual' aspect of the subject. Most businessmen look upon distribution as an expensive but unavoidable back-up to production and sales. Better results will be achieved by taking the more positive queue of thought that distribution should be built into the design of the whole business in order to 'add value' to the product. In other words, look at distribution as part of the design of the product the part that makes it easy and convenient for the customer to buy.

The best possible product that man can devise still needs to be in the right place at the right time and, if it is, gives the business a vital competitive edge. Moving things This section could have been headed 'Moving Product', but we should also consider moving semi-finished goods and raw materials as-well as products.

It may be convenient or at times save money to collect raw materials from suppliers or to take semi-finished products to a sub-contractor. In any event, transport of some kind is needed. Let us first consider Phillip, whose experience illustrates a number of useful ideas. 'I started a business restoring antiques and making general repairs of furniture.

I knew that it would take a long time to develop a clientele and did not want to spend money on a vehicle. I was, in any case, very short of money and had no credit-worthiness to offer to the bank manager. 'Nevertheless, I had to find a way to collect items of furniture from customers, take them to my workshop and return them when the work was completed.

I dealt with the problem in the only way open to me by shopping around and finding a van-hire company offering vehicles at a reasonable daily rate.

This worked well for some time, especially when I was able to combine two or more trips in one hiring. 'After about a year my business was building up rapidly and I concluded that if I bought a second-hand van I would be more independent.

I found an elderly, battered vehicle which was cheap and calculated that ...

I found an elderly, battered vehicle which was cheap and calculated that even with tax and insurance I would

These fixed costs are: • Lease or depreciation costs • Tax • Insurance Garaging In ...

These fixed costs are: • Lease or depreciation costs • Tax • Insurance Garaging In addition, variable costs will be incurred depending on the mileage covered.

Having worked out the total cost of an owned or leased vehicle, ...

Having worked out the total cost of an owned or leased vehicle, the businessperson can compare this cost with that of any suitable o