Shipping Remains A Significant Cost Of Doing Business

Regardless the type of business one decides to become engaged in, there will always be a need to get whatever the product from point of origin to the market. This has not always been such a significant part of doing business, though it has always been a part of the process. The greater societal development has become, the greater the need for speedy inexpensive shipping.

In the not too very distant past, the cost of getting things to the marketplace was one of the least worrisome parts of engaging in business. As recently as 1970 the cost of gasoline was a mere 35 cents per gallon and that was a ten cent per gallon increase over the previous decade. Farm fuel oil was exempt from taxes and so cost as little as 11 cents per gallon. These costs have obviously skyrocketed, even when the prices are adjusted for inflation.

In addition to the obvious increase in costs due to gasoline and diesel, packaging products have also increased in price because many of them are made from petroleum as well. Expenses due to paper products have also increased as has the cost of labor. In all, it is simply a much more expensive endeavor to move product than it ever has been in the past.

We have always had a need to communicate with one another, and in the early going the United States had an expanse that was larger than the young nation could easily handle in terms of staying in touch. The going was rough on a number of terms. The distances were unparalleled, and the exposure to the elements, animals and unfriendly indigenous peoples made cross country delivery a sporting proposition at best.

Cities began receiving free mail delivery in 1828, but those living in rural areas had to either make the long trip into town or pay to have their mail delivered by a private carrier. The oldest agricultural organization in the nation pushed to introduce free delivery to farmers. It took 33 years to come to fruition, but it was established as an official service under President Grover Cleveland in 1891.

The notion of rural free delivery was far from universally accepted. The companies that were providing postal service for price felt they were being unfairly persecuted and would lose their business. The shops and stores in towns feared the rural patronage would dwindle and cost them dearly. In the end everyone survived and farm communities had the same access that city folk had.

As it turned out, everyone survived the concept and it became so famous it appeared regularly in TV with the program known as Mayberry R. F. D. Though most fans were unaware of the meaning behind the letters. The concept of free mail delivery began to crumble in 1847 with the introduction of the postage stamp. The young nation realized they needed to find an equitable way to pay for the service and made the use of prepaid postage compulsory in 1855.

Today we take the ability to transfer packages across the nation and across the globe for granted. We even have the ability to get things delivered throughout the US overnight and anywhere in the world in just a few days. This has allowed the process of doing business to become and remain truly international. But despite all our progress, it is folly to enter into any business with carefully assessing the cost related to shipping.

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