Posts Tagged ‘Dealer Negotiations’

FOB [a/k/a Freight on Board]

Thursday, July 8th, 2010

Condition of the Occasional Shipped Product

FOB is the first of three items that potentially may derail our company from doing business with a manufacturer (or distributor).    The term “Freight on Board” (commonly referred to as ‘FOB’) is often used when shipping goods to indicate who pays loading and transportation costs and the point at which the responsibility of the goods transfers from shipper to buyer.  For our company, FOB Destination is the signature of a reputable company, a company who takes great care in the delivery of their product up until it gets into the customer’s hands.  Alternatively, FOB Shipping Point is a company with a completely different set of agendas.  Their mantra – as soon as it leaves their dock, it’s the customer’s problem.    (more…)

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