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Freight Damage And Your Bottom Line
August 29, 2007

We love having our own furniture store, making our own decisions on what to stock, what to charge for our products, whether we can offer a discount, who to hire which means who we want to work with, what hours to work and with whom we choose to do business. But, I gotta tell you; we get awfully tired of dealing with furniture and accessory damage at the receiving end.



One of my jobs at Landfair Furniture + Design Gallery is to receive the deliveries from the truckers.  Many times I can tell when I see a box that there may be problems inside.  Forklift stabs through the side of a box are a dead give-away of damage.  Or a crushed corner!  The box may look like it was dropped off the back of a semi.  The harder damage to deal with and our disappointment comes with hidden damage.  Last week we received a beautiful, special order, linen upholstered sectional.  After we unwrapped the chaise, we discovered a “wear” hole in the front about the size of a quarter.  Another time I opened an elaborately wrapped sidebar.  Hidden under all the foam was a deep scratch in the top about 1 ½ inches long

We don’t carry many thousands of square feet of inventory, 20 Sherrill sofas each with a different fabric, for example.  Based on our floor samples, we special order, many times using COM fabric.  We want 50% down on the order, which can take 8 to 10 weeks for delivery.  When the inspection goes well and before we deliver, we collect the balance, the other 50%.  So beside the wait, for the balance from our sale, a repair ties things up for our client and for us.  It affects our cash flow.

We have several people we call when we need repairs done.  One man, Jose, is excellent with upholstery.  The other, Steve, is excellent with wood and case goods.  If the damage is “freight damage” we are required to submit pictures to the freight company to get authorization for repairs.  If the damage is a vendor problem, we are required to submit pictures, get an authorization for repair or get an allowance for repair.  One manufacturer is always trying to save her company money by low-balling what will be paid to us.  Again, we have money going out for repair before we get paid.

Sometimes, a client will find a problem with the furniture that both Bev and I and the designer missed.  Those clients are priority number one to make happy.

Bev has worked at places where the collection from freight companies and vendors was pretty sloppy.  She’s sure that a lot of money spent was not reimbursed.  We keep meticulous records in a complaint and damaged freight file.  Each contact concerning the problem is written down along with the date, emails are saved, pictures saved on the computer and a date for follow up is noted.   Those $100 to $200 repair bills can mount up and sap the bottom line.

We hate to see damage, but it is just part of the business.  Don’t let repairs be a drain on your bottom line.

Email me about your ways of handling damage at landfair3554@comcast.net and check out my other blog:  Landfair Furniture (Blog)

Posted by Mike Landfair on August 29, 2007 | Comments (0)