What about the freight?
With fuel costs changing and freight surcharges affecting furniture shipments, designers need a clear system for managing these expenses without sacrificing project profitability.
In this episode, I break down how to charge for freight, when to charge for it, and how to protect yourself when actual shipping costs change between ordering and delivery. The goal is simple: keep your client informed while making sure your business isn’t absorbing costs it shouldn’t.
Start by getting a freight quote for everything you’re shipping, along with delivery and receiving quotes whenever possible. If you’re buying at deep wholesale pricing and selling at retail, you may have enough margin to absorb certain costs into the product price. If you’re operating on cost-plus or don’t have those margins, those costs need to be accounted for appropriately.
I also explain why I recommend treating freight and delivery carefully on your purchase proposals while building receiving expenses into the product price when your margins allow. Sales tax, however, should remain separate because you’re collecting that money for the government—it isn’t part of your revenue.
Another essential step is protecting yourself against unexpected freight surcharges with clear proposal language and reconciling actual freight invoices once the project is complete.
At the time of this recording in September 2026, I discuss how designers should internally plan for freight and delivery at approximately 20–23% of product cost, while continuing to track that percentage because it can change.
The bigger lesson? White-glove service means anticipating costs upfront, charging enough to cover them, and taking care of the details for your client.
Topics We Cover in This Episode:
- Understanding how freight surcharges affect project profitability
- Getting accurate freight, delivery, and receiving quotes upfront
- Deciding when freight should be included in your product pricing
- Structuring freight and delivery on purchase proposals
- Grouping deliveries to control costs and simplify installations
- Why receiving charges can be built into your furniture pricing
- Keeping sales tax separate from your business revenue
- Adding proposal language that protects against freight overages
- Tracking freight and delivery percentages as a KPI
- Creating realistic budgets that support white-glove service
🔗 Resources Mentioned:
- IDBA Weekly Tuesday Q&A Sessions for Members
- Learn more about IDBA
- Book a Clarity Call
- Learn about the Growth & Structure programs
Additional Resources:
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