According to the March 1, 2016 edition of Fortune Magazine, bad road conditions cost the average American driver $516. These are the hidden costs of driving.
You could expect to spend money on things like oil changes and routine maintenance but bad road conditions can cause blown tires or broken windshields, costs you don’t anticipate. How many times have you run over a pothole, cringed and thought, “Oops, that hurt?”
Individually, these costs seem insignificant, but they add up quickly. With 210 million drivers on the road, Americans spend about $150 billion a year fixing damage and wasting gas because of bad road conditions.
In-transit shipping damage costs are also hidden. Did you know that $60 billion of product is lost every year due to shipping damage caused by ineffective stretch wrapping?
It’s estimated that 0.5 percent of products are unsellable due to shipping damage. That may seem like a small number, but those losses add up. For example, a company shipping $100 million worth of products a year loses $500,000 to damage. Those are dollars that didn’t go to the bottom line.
Its not realistic for you to go around fixing potholes, but you can do something to reduce the risk of shipping damage.
Statistically, half the costs associated with in-transit shipping damage are the result of ineffective stretch wrapping. Just by stretch wrapping effectively, half of that damage can be eliminated. Imagine, $125,000 right back into the pocket of a $100 million company, for example.
Don’t let unnecessary waste reduce your bottom line. Reduce damage costs by learning how to stretch wrap better.
This post was published on March 18, 2016 and updated on September 13, 2017.
March 18, 2016