February 2011 News

Dear Zephyr Express Storage Customers:

Zephyr Express is committed to providing our customers the highest level of service in the wine delivery & transportation industry.   An extensive analysis was completed regarding our cost to serve our customers from both a delivery and warehousing perspective.  The result is a change to the delivery pricing structure that reduces many of our rates. To make these new rates and streamlined pricing available immediately we are implementing the changes March 1, 2011.  

Zone Delivery Changes

As a result of our cost analysis, we are lowering rates in the North urban areas for our storage customers. We have decreased the number of zones in the North to simplify our price structure.  South urban area charges remain the same.  These changes reduce the delivery cost for our most active customers.

Zephyr North and South Storage Rate Adjustment

For many years, Zephyr North has worked on a four tier storage system based on the number of cases per SKU.  The move to the Napa warehouse resulted in efficiencies that now allows us to streamline our per case charge.   The new per case rate will be .35/case/month for inventory held in Napa or North Hollywood.

Per Case In and Will Call Charges

Because most of our customers use a combination of delivery and Will Call service we are combining the per case “In Charge” and the per case Will Call charge into one “In/Out Charge” that will be charged upon receipt of the inventory.  Purchase order receipts of 280 cases or less (approx. 5 pallets or less) will be charged .95/case.  Purchase order receipts of more than 280 cases (approx 5 pallets or more) will be charged .75/case.  This one time charge provides more flexibility for our customers while avoiding incremental charges.

Fuel Surcharge

Diesel fuel prices are on the rise.   Effective with this notice, our fuel surcharge on delivery will be 13%.  This charge is reviewed on a regular basis and will be adjusted as fuel prices fluctuate.

On behalf of the entire Zephyr Express staff, thank you for your business.  If you have any questions or concerns, please do not hesitate to contact me in Napa at Extension 5027.

Sincerely,

Susan Ruland
Vice President