Blog

Domestic Terms of Sale

Over the years, true understanding of domestic purchasing terms of sale and their implications have become blurred.  Issues generally do not arise until there is a problem and then the parties to the transaction attempt to sort out their individual responsibilities.  Taking time to understand the terms, will help you select the correct one for your transaction.
Since transportation costs are the second or third highest expense that a manufacturing company has beyond the cost of labor and raw materials, it makes sense to know how they are allocated.  Even if you permit your vendor to pay the freight charges, you need to know the amount they paid.  Be sure to identify freight costs separate from cost of goods.

Negotiating the most appropriate terms of sale will allow you to add value to your purchase.  Choosing Westgate as your transportation service provider gives you the opportunity to select the best price / service value.

 

 

  • F.O.B. Origin———————–>
    Freight Collect
Buyer pays freight charges
Buyer bears freight charges
Buyer owns goods in transit
Buyer files claims – if any
  • F.O.B. Origin———————–>
    Freight Prepaid
Seller pays freight charges
Seller bears freight charges
Buyer owns goods in transit
Buyer files claims – if any
  • F.O.B. Origin———————–>
    Freight Prepaid and charged back
Seller pays freight charges
Buyer bears freight charges
Buyer owns goods in transit
Buyer files claims –  if any
  • F.O.B. Destination—————>
    Freight Collect
Buyer pays freight charges
Buyer bears freight charges
Seller owns goods in transit
Seller files claims – if any
  • F.O.B. Destination—————>
    Freight Prepaid
Seller pays freight charges
Seller bears freight charges
Seller owns goods in transit
Seller files claims – if any
  • F.O.B. Destination—————>
    Freight Collect and Allowed
Buyer pays freight charges
Seller bears freight charges
Seller owns goods in transit
Seller files claims – if any

Westgate Global Logistic’s ideal client is someone who:

  • Typically is a small to midsize company requiring greater transportation resources.

  • Knows there is more to moving freight than picking up at one location and moving to the next.

  • Typically views our services as a means to provide them time to achieve other, more important things in their business and/or personal lives.

  • Has realistic logistics objectives and clearly communicates those expectations to our firm, so we all agree on how to proceed.

  • Hires us to play a vital role in their strategic transportation plan, because they value the flexibility available through a non-asset based logistics service provider.

  • Trusts us enough to ignore all those that appear in the marketplace driven by price alone, without regard for consistent service.

  • Commits to our company for the management of most/all of their volume and truckload freight, because they want to coordinate the entire process rather than handpick individual shipments.

  • Amicably discusses and then delegates transportation and logistics decisions to our firm, including customer/ vendor relationships and expectations. Doing so gives us a better chance of overcoming the logistics challenges and meeting objectives.

  • Provides qualified referrals to us.

Our ideal clients enjoy a preferred relationship with our firm and staff. As a result they:

  • Expect and deserve to receive personalized customer service.

  • Consider our firm to be part of their transportation team.

  • Know that our firm and our service partners bring specific areas of expertise to each situation.

  • Trust that our competent and dedicated staff is capable of answering their service-related questions.

  • Treat our staff with respect and are treated with respect and appreciation by our staff.

  • Gain both personally and professionally from the relationship with our firm.

Now that we have described our ideal client, we need to know how we meet your expectations of the ideal logistics service provider.