PROFITsystems Freight Program Hits $2 million Mark in Retailer Savings

Furniture World Magazine

PROFITsystems, Inc. reached a $2 million savings milestone for home goods retailers participating in the company’s PROFITfreight service program. PROFITfreight was introduced in late 2005 and is the largest program of its kind in the industry, according to president Jeff Niskern. The retail solutions expert negotiates nationwide freight discounts for participating retailers. PROFITsystems clients can automatically receive discounts associated with bulk shipping rates. “It’s been wildly successful so far but we are not really surprised,” said Niskern, who added that over half of the company’s clients have signed up for the program. “Retailers were quick to embrace PROFITfreight when they figured out they could stop paying staff to analyze freight bills or negotiate deals with carriers. Average-sized stores are seeing $10, 000 to $60,000 in annual savings, which goes directly to their bottom line.” Rising freight costs industry-wide have had a negative impact on cost of goods for many retailers, impacting overall profitability. Demand for alternatives is fueling the program’s success. “Not only have we saved over $5,000 in just a few months, but we also received over $1,000 back from FedEx Freight,” said David Weir, owner, Weir’s Furniture Center, Sault Sainte Marie, MI. “This is money we would have never seen, had our PROFITfreight consultant not been keeping an eye on our account.” PROFITfreight service department is accessible to its clients on a full-time basis. “The ability to have freight consultants right at our fingertips is a great tool,” said Jay Yennock, owner of Chinatowne store in Sovay, NY. “The PROFITfreight consultant we worked with pointed out that based on our freight bills, some of the rates seemed suspicious. After further discussion and investigation, we found that one carrier had been overcharging us for almost a year and owed us $2000.” Retailers additionally benefit from dedicated lanes, which are pre-determined shipping routes from manufacturers direct to stores that ensure consistently quick deliveries and is also organized by PROFITfreight consultants. PROFITfreight is free to PROFITsystems clients and the service is expected to be available to any home goods retailer for a fee in 2008.