SHIPPING QUESTION

[Smitty37]

Shipping is my largest cost other than inventory with shipping and shipping related costs running over 12% of gross sales. It is conceivable that I could raise my prices by 12/13% and offer free shipping to the USA (the last round of rate increases about did in my international sales anyway),
The question is would you pay 12/13% more to get free shipping.

AS I EXPECTED THE OVERWHELMING MAJORITY OF VOTERS (ABOUT 88%) WOULD RATHER PAY A SEPARATE SHIPPING CHARGE. IT'S GOOD THAT MOST OF YOU REALIZE THAT "FREE" SHIPPING ISN'T FREE. THE PIPER MUST BE PAID.

 

[hanau]

If i spend $100 on pen kits, i would only get say 8 kits that I could buy from some one else and pay $11 per kit and $6-7 shipping.

But if your service and speed is better than the other yes I would.
If equal I would go with the cheaper prices.

Its only a few dollars but, this is a hobby to me.

 

[csr67]

I'd rather pay a lower price on products and then be charged a reasonable price for USPS flat rate box shipping. The lure of "free shipping" is lost on me when I see higher prices.

 

[PSNCO]

What about raising prices slightly higher and offering free shipping for orders on $100 or more? Would that possibly drive up the volume of your sales for customers to get free shipping?

 

[Drewboy22]

I have shopped from your store and the experience was better than the other places I have used and the shipping was faster.

For example:

Company A - Load up my shopping cart and spend $100.00 then they add 8.95 for shipping. The next day or day after I get an email saying it is shipped. Then I hear nothing for 7-9 more days when it arrives at my place.

You - Load up my shopping cart with $100.00. I get an email within a couple hours that my order was picked up and 3-4 days later I get my goodies. (I ordered from you in the 9th and it showed up on the 13th. And that is with a Holiday on the 12th)

If I were to make the same order from Company A and expedite the shipping to priority the price of shipping goes up:

Ground Shipping ($8.95)
3-8 business days delivery

Ground Shipping - Rush Processing ($11.45)
2-5 business days

UPS 3 Day Select ($30.77)
3 business days delivery

UPS 2nd Day Air ($37.55)
2 business days delivery

UPS Next Day Air Saver ($72.12)
1 business day delivery

I would "assume" (only because I have have been impatient myself) that several people when given the opportunity to expedite shipping for a few more dollars would select "yes". So when you ship the way you do, it works out in my favor to just pay a few pennies more.

Just my .02,

Drew

 

[Smitty37]

I currently give free shipping on orders of $175 or more.

 

[Skeleton2014]

I went back and looked at the 8 orders I've placed with you since January of this year... Each had a $7.65 shipping charge. Then I looked at the order total before shipping and calculated a 13% increase. On only 3 orders would I see a slight benefit with the free shipping. The remaining 5 orders showed a significant increase in my cost... I'd stick with the flat rate shipping charge for what I order.
Jeff

 

[dthayer]

My vote would be to price your products to give yourself a fair profit including covering overhead such as picking and packing but not to include shipping. Then offer shipping options at actual cost so that we can make the choice (if we want to save some money and are willing to wait, we'll pick SBTC shipping (slow boat to China) or if we are in a hurry, we'll expidite to INIY shipping (I need it yesterday!).

Just my $.01 (my thoughts aren't worth $.02 )

 

[Smitty37]

My vote would be to price your products to give yourself a fair profit including covering overhead such as picking and packing but not to include shipping. Then offer shipping options at actual cost so that we can make the choice (if we want to save some money and are willing to wait, we'll pick SBTC shipping (slow boat to China) or if we are in a hurry, we'll expidite to INIY shipping (I need it yesterday!).

Just my $.01 (my thoughts aren't worth $.02 )

That isn't an option for me. The only viable carrier for a business as small as mine in this location is USPS. And their SBTC shipping is only good for packages weighing less than 13 ounces including the box. INTY really isn't available from our post office - too far from an airport. UPS will take next day delivery stuff here but seldom make it.
EDIT IN: Order processing, including packing and picking is more of a 'per order' cost than a 'per item' cost. i.e. I sell kits for over $100 each and items for as low as $1.00 ea. It take the same effort and most of the same cost to pick, pack and ship an order for either item. I pay a monthly fee for the store website that is the same regardless of how many items I offer for sale or how many items are sold. That fee is much easier to calculate on a per order basis than to try to relate it 'per item'. Ditto with the monthly fee for my postage printing and credit card processing/paypal payment.

 

[CREID]

I voted no, because even though it would save me money in the short term. I am trying to get to a point where I can order more and the USPS shipping I get from the people I buy from use the if it fits it ships. So much larger orders will end up costing me more with your free shipping option in what I hope will be the near future.

 

[CREID]

My vote would be to price your products to give yourself a fair profit including covering overhead such as picking and packing but not to include shipping. Then offer shipping options at actual cost so that we can make the choice (if we want to save some money and are willing to wait, we'll pick SBTC shipping (slow boat to China) or if we are in a hurry, we'll expidite to INIY shipping (I need it yesterday!).

Just my $.01 (my thoughts aren't worth $.02 )

That isn't an option for me. The only viable carrier for a business as small as mine in this location is USPS. And their SBTC shipping is only good for packages weighing less than 13 ounces including the box. INTY really isn't available from our post office - too far from an airport. UPS will take next day delivery stuff here but seldom make it.

Is anything an option for you? Aren't you the one that sold your company? Forgive me if I am wrong, but I am thinking you have.

 

[Smitty37]

My vote would be to price your products to give yourself a fair profit including covering overhead such as picking and packing but not to include shipping. Then offer shipping options at actual cost so that we can make the choice (if we want to save some money and are willing to wait, we'll pick SBTC shipping (slow boat to China) or if we are in a hurry, we'll expidite to INIY shipping (I need it yesterday!).

Just my $.01 (my thoughts aren't worth $.02 )

That isn't an option for me. The only viable carrier for a business as small as mine in this location is USPS. And their SBTC shipping is only good for packages weighing less than 13 ounces including the box. INTY really isn't available from our post office - too far from an airport. UPS will take next day delivery stuff here but seldom make it.

Is anything an option for you? Aren't you the one that sold your company? Forgive me if I am wrong, but I am thinking you have.

Three things. Thing one - I am the sole (100%) owner of Smitty's Pen Works and make all decisions regarding Smitty's Pen Works. Thing two - I am asking a question about the preferences of my customers, not committing to change my way of pricing. Thing three - I believe that most of my customers will prefer no change.

 

[magpens]

I currently give free shipping on orders of $175 or more.

Is that applied in some way (e.g. $10 shipping credit) to international (i.e. Canadian) orders ?

 

[dthayer]

My vote would be to price your products to give yourself a fair profit including covering overhead such as picking and packing but not to include shipping. Then offer shipping options at actual cost so that we can make the choice (if we want to save some money and are willing to wait, we'll pick SBTC shipping (slow boat to China) or if we are in a hurry, we'll expidite to INIY shipping (I need it yesterday!).

Just my $.01 (my thoughts aren't worth $.02 )

That isn't an option for me. The only viable carrier for a business as small as mine in this location is USPS. And their SBTC shipping is only good for packages weighing less than 13 ounces including the box. INTY really isn't available from our post office - too far from an airport. UPS will take next day delivery stuff here but seldom make it.
EDIT IN: Order processing, including packing and picking is more of a 'per order' cost than a 'per item' cost. i.e. I sell kits for over $100 each and items for as low as $1.00 ea. It take the same effort and most of the same cost to pick, pack and ship an order for either item. I pay a monthly fee for the store website that is the same regardless of how many items I offer for sale or how many items are sold. That fee is much easier to calculate on a per order basis than to try to relate it 'per item'. Ditto with the monthly fee for my postage printing and credit card processing/paypal payment.

I can understand your issues and see your reasoning. I am still a fan of breaking out the shipping separately rather than an across the board price increase and free shipping. The problem with that is the customer will be paying too much for a small but expensive item and too little for a large (or a lot of) inexpensive item.

 

[nativewooder]

Not that this is really relevant, but in my years of making bowls, vases, platters, etc. and pens of various sizes and shapes, there were only 3 shippers I could depend on for good prices and excellent shipping and one of those was in Utah. The other two are Exotic Blanks and Smitty's.:biggrin:

I wish I had smoked about 10,000 fewer packs of Marlboro cigarettes!!!:frown:

 

[Rockytime]

I don't understand the concern over shipping costs. The saving of a couple of dollars is only spent on Starbucks, beer, tobacco, lunches, TOCOS (Yum, yum) and other things. Nothing wrong with any of those things but if shipping costs are too high use another vendor. Just my humble opinion.

 

[TurtleTom]

I don't think people see farther than the sticker price. If you did something like that you'd need a big banner pointing out the benefit. That takes up valuable screen space.
Everyone knows there is savings in volume, it's just amateurs like me suffer under the shipping costs from necessity.

 

[Lenny]

No, I would not. I understand the shipping cost are out of your control. You, and most vendors, are just passing along the costs. Those that really inflate them or add a "handling charge", might cause me to pause placing an order. As someone who likes to order "a few here and there" ... it's my own fault. The best way to be economical about it is to place larger orders.

 

[bobleibo]

Personally, I only look at the total combined cost but I am always willing to pay a few bucks more for great service.

 

[Smitty37]

I currently give free shipping on orders of $175 or more.

Is that applied in some way (e.g. $10 shipping credit) to international (i.e. Canadian) orders ?

I don't think it's applied automatically but if it isn't I will adjust the international shipping. I am asking about it right now but the technical people from my store provider have not responded yet.