Anyone who has ever invented a product or sought to make a living by selling items either self made or in the retail market understands a basic need to move the product from place to place. Whether the need is a local endeavor, a nationwide event, or a global necessity, there are significant costs involved with getting the product from where it is created to the consumer who will buy it. Shipping has become a major factor in business, and controlling or managing it has become a significant part of every company.
As recently as three decades ago, the cost of moving product from place to place around the country was far less, though never insignificant. Smart businesses have always tried to keep careful tabs on such expenditures to ensure they did not get out of hand. Unfortunately, one of the key ingredients to transportation is oil, and we are dependent in large part on foreign oil. This has left us vulnerable at times to the political whims of other nations, with concomitant negative impact on business.
But it is not just the cost of petroleum that has made it more expensive to move product from place to place. The cost of packaging, much of it made from petroleum has also increased. We can seen the increase in our supermarkets, the cost of paper bags had always been more than for plastic bags, but that is no longer the case.
The United States feeling about the delivery of mail and the importance of that process was immortalized by the efforts of the Pony Express which began in 1860. The task was difficult and fraught with peril. The recruiting effort of the founder, William H Russell left little doubt how dangerous the enterprise would be as he even suggested his preference to hire orphans for the job.
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.
None of these expenses related to getting the product to market is a surprise, except for the increasing percentage cost of shipping to the overall expense of being in business at all. It is important for new business owners to be sure their product has an eager and active market for their product before they invest too much in expansion. If they are not careful, the cost of delivering the goods can exceed the cost of the product itself.
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