In a recent interview with MDM, Bill Snyder, vice president of channel development for Palatine, IL-based manufacturer Square D (Schneider Electric’s North American operating division), had some interesting points to make about passing on the cost of fuel in the channel.
 
He says that Square D learned a lesson when fuel costs rose in previous years. The company had tried a fuel surcharge, which seemed logical at the time. But the distributors came back to Square D and said: “Wait a minute, you don’t understand. You send me three pallet loads, you put a fuel surcharge on there. I break those pallets down and put it on the shelf, then I sell them to people. How do I transfer that?”
 
A good point. So …