Excess drops

Deliveries per week to an account above the norm for accounts of the same size and type, from the delivery log, times a stated cost per drop. The list is accounts with no stated delivery constraint, and the offer is the schedule that similar accounts already run on.

DefinitionDeliveries per week to an account above the norm for accounts of the same size and type, from the delivery log, times a stated cost per drop. The list is accounts with no stated delivery constraint, and the offer is the schedule that similar accounts already run on.

Not a blanket minimum

A minimum order hits small accounts on the right frequency and misses the large one on daily drops.

Constraints shown, not listed

Fresh-only kitchens with no storage are beside their norm, not on the list.

How it is computed

Deliveries per week to an account minus the norm for accounts of the same size and type, from the delivery log.

Example

A cafe spending $900 a week takes five deliveries where similar accounts take two. Three excess drops at $38 cost $5,900 a year on an account earning $9,000 of gross margin.

Where it goes wrong

Seen as good service. It is, and it is unpriced.

Articles that use this term

Territory, capacity and quota planning · Distributors

Order size and drop frequency: the accounts that could take half the deliveries

How a distributor finds the accounts whose delivery frequency is out of proportion to their order size, from the delivery log and the invoice lines: drops per week against value per drop, the norm from accounts of the same size and type, the accounts on daily drops that similar accounts serve twice a week, the cost of the extra drops, and the offer that consolidates without losing the account.

16 Sept 20262 min read