What is drop size?
Drop size is the amount of product delivered to one customer in one delivery, measured in cases, units, kilos, litres or invoice value depending on the business. Distributors and wholesalers watch it closely because each delivery has a roughly fixed cost, so larger drops cost less to serve per case. The opportunity is finding fit outlets next to the customers you already serve.
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The formula
Average drop size = total quantity delivered / number of deliveries (drops) in the period
Usage varies by business. Brewers and drinks wholesalers often mean cases or kegs per drop, foodservice distributors often mean invoice value per drop, and some logistics teams use drop to mean the stop itself. Agree the unit before you compare numbers across teams.
Drop size matters because of cost: delivery cost per case = cost per drop / cases per drop. The vehicle, the driver's time and the stop cost roughly the same whether the drop is two cases or twenty. That is the core of cost to serve for most distributors.
Worked example
A distributor's cost per drop in one city is 12 cost units.
| Outlet | Deliveries per month | Cases per month | Average drop size | Delivery cost per case |
|---|---|---|---|---|
| First venue | 8 | 16 | 2 | 6.0 |
| Second venue | 4 | 20 | 5 | 2.4 |
| Third venue | 4 | 40 | 10 | 1.2 |
The first venue orders twice a week in small drops and costs five times as much per case to deliver as the third. Moving the first venue to one delivery a week, four cases each time, halves its delivery cost without losing a case. Many distributors set a minimum drop, or charge for deliveries below it, for exactly this reason.
Drop size vs order size vs call frequency
Order size is what the customer orders; drop size is what arrives in one delivery. They match when each order is delivered once, and differ when an order is split across deliveries or two orders share one.
Drop size also trades off against call frequency: visiting or delivering more often usually means smaller drops. Where the balance sits depends on how much the outlet can store, how fresh the product must be and what each drop costs.
How distributors grow drop size
The levers are well known; the hard part is knowing where to pull them.
- Range extension: add categories the outlet currently buys elsewhere
- Consolidation: one delivery for orders that used to arrive separately
- Delivery days or minimum drops per area
- Route density: more customers on the same streets lower the cost per drop, even if each drop stays the same size
Finding outlets on the streets you already drive
Dense delivery needs to know which fit outlets sit near your current accounts. Dashmote shows the outlets around them, with what their menus show they use, so no one has to scout the streets by hand, so a distributor can add customers to the streets the truck already drives. See restaurant leads for food distributors.
DashLeads tracks 20M+ venues.
Frequently asked questions
What is a good drop size?
A good drop size is one at which the delivery cost per case stays within your margin; there is no standard figure. Work out your cost per drop, then the minimum drop at which a delivery breaks even.
Is drop size the same as average order value?
Not always. Average order value is the value of an order; drop size is what arrives in one delivery, in value or in physical units. Some businesses use the terms interchangeably, so check the definition.
How do distributors increase drop size?
By extending the range each outlet buys from them, consolidating orders into fewer deliveries, setting minimum drops or fixed delivery days, and offering better terms above a threshold.
Why do small drops cost more?
Because most delivery cost is per stop: the vehicle, the driver's time, parking and paperwork. Spread over fewer cases, that fixed cost is higher per case.
Does drop size matter for sales teams or only for logistics?
Both. Logistics uses it to plan routes; sales uses it to decide which accounts to serve direct, which to serve through a wholesaler and how often reps visit.