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Making Loading Docks Profitable

A loading dock no longer needs to be a drain on profits.

Typical loading docks eat up square footage, personnel, materiel and postage. In exchange they keep goods flowing in and out of the company, controlling the lifeblood of any manufacturing or shipping operation.

Most businesses are so set in their ways that they apply this model without a thought to the alternatives. However, a growing minority of businesses are using their existing loading dock to generate new revenues. At worst they make enough to offset some of the basic costs, while the more successful ones are able to generate enough new cash flow to cover all their investment in the loading dock.and then some.

As with so many successes in today's business world, this one depends on good planning and marketing.

Consider the typical loading dock with a business shipping 10,000 boxes every year. The company can easily burn through six figures in postage and packaging materials. This doesn't even include the costs of a dock manager, rent, maintenance and the like.

But inserting a package with marketing materials into every outgoing box transforms the shipping box into an advertising vehicle. Related, non-competing firms reach out to the same audience the shipper already has a relationship with. And they pay for the privilege!

Consider how everyone wins in this scenario:

  • Advertisers speak to potential buyers in a relaxed environment, introduced while the sales prospect is in a buying frame of mind.
  • Consumers are exposed to offers, promotions and samples that might not be available to the general public. In-box marketing lends itself perfectly to new product introductions and pricing promotions.
  • Shippers create potentially lucrative revenue streams, adding significantly to the bottom line.

Success hinges on a strong development plan with good pricing and outreach to the right types of advertisers. Logistics regarding printing and fulfillment need to be fleshed out prior to that outreach even getting serious consideration.

Yet with solid advance planning and a commitment to the success, you'll probably see your own loading dock contributing back to profits within a year of starting the process.

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