SHIPPING CHARGE UPDATE

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Dear Valued Customer: 

Having just  completed the last of the 2017 summer markets that Kalalou will  participate in, we wanted to extend a heartfelt thank you. Your loyalty  and business are appreciated far more than you could ever  know, and on behalf of the entire Kalalou family, we ask that you please know that it is a sincere pleasure serving you!  

This summer’s  markets were among the best on record for Kalalou.  In fact, the Atlanta  and Las Vegas markets were record shows – and that’s covering a 30+  year history!  Just as surely as the excitement grows,  so do the changes within our industry.  And in order to remain not just  viable components of our industry, but impactful leaders, we must meet  these changes, and sometimes challenges, head on.    

One primary issue is  that of the increased shipping costs that our industry has seen over  the last several years, as well as those just recently announced by  FedEx/UPS.  Candidly, Kalalou has been faced with  a real need to adjust our shipping rates. This letter will describe  what changes are being made, give you tips, and inform you why changes  are necessary. With this information you can take advantage of current  rates and plan for future shipments.

Reasoning for and Description of Changes: For  the past 5 years Kalalou has operated from a very simple and easy  shipping rate plan that divided states into 3 zones and charged either  14% (zone 1), 16% (zone 2), or 18% (zone  3) of the wholesale order value for shipping.  As customers, you’ve  never had to worry about weights or dimensions – and we’ve maintained  the same shipping costs for 5 years.  

Moving forward, there will be an adjustment. 

While  shipping charges have NEVER been a profit center for Kalalou, there  comes a point where the losses incurred represent more than an  “acceptable cost of doing business”.  As  a result and in an effort to more closely align our shipping charges  with those of the actual costs we incur, it is required that our  zone/percentage policy be updated. 

In  keeping with the same program concept whereby shipping charges are  determined as a percentage of the wholesale value based upon zone  assignments, the shipping zones featured  below will become EFFECTIVE SEPTEMBER 1, 2017 on all orders placed on or after this date:   

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As you can see from above:   

  • Some states experienced no change.
  • Most states will experience a 1% increase in shipping charges – which is the equivalent to a $10 shipping increase on a $1000 order.
  • A few states will experience a 2% increase in shipping charges – which is the equivalent to a $20 shipping increase on a $1000 order.
  • *=Shipping calculated on location of freight forwarder.

In every case, you can rest assured that we have taken every step to fairly appropriate the changes.

Tips to Save Money with Shipping:

Here’s some ways to take advantage of the early notice in shipping rates:

As it relates to Kalalou, take advantage of this notice and place any planned orders that you have prior to the 9/1 effective date.  Remember…you set the actual ship date…and we’ll honor the 14%, 16%, 18% so long as you get your orders in before September 1st!

As for your other vendors, you may find that many do not follow a percentage shipping model like the Kalalou uses.  In fact, many companies may more directly pass the shipping costs along to you.  And with both FedEx and UPS announcing new policies for the 4th Quarter that are guaranteed to increase shipping costs, you would likely be better suited to plan early and be prepared.  Our suggestion would be to get your orders to those vendors before these policies take effect. 

Even with these updates, Kalalou still presents what are considered to be very reasonable and fair shipping rates. These small changes are the first in five years. This fact speaks volumes into the consistency of our company. We hope you take advantage of this advance notice.

And please know that we genuinely look forward to your continued business with us.

Sincerely,

Josh McKay
VP of Sales & Marketing