Free shipping
- Thread starter gallianp
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mind sharing the company or it is not much of a wow
Lenny
Member
I sense there was sarcasm involved! 
There are companies where shipping is still a profit center. It would be for me if I could get away with it. Shipping takes more time and labor than any other aspect of my business
IPD_Mr
Member
People are most likely going to start paying more for shipping either through higher shipping costs or higher product prices, once the new postal rates go into effect on the 27th. Especially when it comes to international shipping. A small flat rate box going to Europe or Australia is going to be$23.95 which is up$7.00 and to Canada it is going to $19.95 also up $7.00. Businesses cannot afford to take continued hits like that without making it up somewhere.
PenMan1
Member
The Government said they are losing 90 cents on every flat rate box they ship. BUT they think they can make it up with more volume
AND, Son, I say Son, (in my best Foghorn Leghorn voice) that a joke, a funny, NOT a political statement.
AND, Son, I say Son, (in my best Foghorn Leghorn voice) that a joke, a funny, NOT a political statement.
PenMan1
Member
In all seriousness, I HATE paying "handling charges". But as someone who does a good bit of shipping, shipping tape labels, packing materials (and they are not giving away gas for Post Office runs, here) adds up VERY QUICKLY!
Hexhead
Member
I know I have done that to myself ordering more than I really need just to get free shipping. It used to be $15-$25, but now it's $150-$200. I like it better when they send you a coupon or a code or something with no minimum purchase. Like Harbor freight's 20% off, that I always carry in my wallet.
Beats no discount at all!
PenMan1
Member
TANSTAAFL- if you don't know what it means, it might be worth a "free trip" to Google.
dogcatcher
Member
I order only a couple of times a year from most of my suppliers. Each order is usually well over $200, and usually I have enough inventory on hand that I can wait for the shipping incentives from my main suppliers. Those that don't offer the shipping discounts can usually be replaced by those that do.
This past December it seemed that every day I was getting shipping incentives from all kinds of suppliers, I now have enough inventory on hand to keep me going until well into 2014 or the next free shipping offer.
This past December it seemed that every day I was getting shipping incentives from all kinds of suppliers, I now have enough inventory on hand to keep me going until well into 2014 or the next free shipping offer.
Facts of life
1. Shipping (carrier costs USPS/UPS/FedEx/DHL/TNT, etc) has to be paid;
2. Handling costs (boxes/mailers/tape/address labels/printing costs/invoice envelopes, etc.) have to be paid;
3. Sellers have one source of revenue - buyers;the buyer is paying that cost one way or another.
The minimum cost for me (this might vary for others) to get a package out the door is $2.02. Typical is about $3.50 for first class and $6.00 for priority mail. That includes nothing for my time and labor in packaging and handling. International is even worse.
Now in addition there are the shipping costs involved in correcting mistakes (either mine or my suppliers), replacing parts missing from kits, replacing parts that customers break or lose.
Figuring out how to deal with shipping is the bain of my existance as far as my business is concerned.
1. Shipping (carrier costs USPS/UPS/FedEx/DHL/TNT, etc) has to be paid;
2. Handling costs (boxes/mailers/tape/address labels/printing costs/invoice envelopes, etc.) have to be paid;
3. Sellers have one source of revenue - buyers;the buyer is paying that cost one way or another.
The minimum cost for me (this might vary for others) to get a package out the door is $2.02. Typical is about $3.50 for first class and $6.00 for priority mail. That includes nothing for my time and labor in packaging and handling. International is even worse.
Now in addition there are the shipping costs involved in correcting mistakes (either mine or my suppliers), replacing parts missing from kits, replacing parts that customers break or lose.
Figuring out how to deal with shipping is the bain of my existance as far as my business is concerned.
ed4copies
Local Chapter Manager
Did anyone notice one of the major suppliers just had about a 20% increase in kit costs? BUT they lowered their shipping cost.
So, if they jack up their product prices and give you cheaper (or "free") shipping, are you getting a better deal?
The "hottest special" for internet companies is to offer "free shipping" (per the trade publications). These same publications suggest an order of at least $60 as the point at which "free" shipping is cost effective. This is all based on a "normal" retail gross margin of about 50%.
Most of the vendors that are active on IAP will be THRILLED if they make THIRTY percent GROSS margin. So, the "average" profit of $30 on that $60 order is reduced to $18. The DIRECT, out of pocket, lowest cost of shipping priority (because these vendors--including us--are not large enough to get the UPS discounts) is $6.ish. Thus, free shipping changes your gross margin on this order to TWENTY percent. From that you still need to pay PayPal, heat, light, employees (or yourself), web fees, etc.
You will find very few, if any, "going concerns" that can operate on 20%, GROSS. For those who love to argue with me---please remember the gross sales of such a company would have to be "in the same ballpark" as the vendors here----WELL UNDER a million dollars!!
FWIW,
Ed
So, if they jack up their product prices and give you cheaper (or "free") shipping, are you getting a better deal?
The "hottest special" for internet companies is to offer "free shipping" (per the trade publications). These same publications suggest an order of at least $60 as the point at which "free" shipping is cost effective. This is all based on a "normal" retail gross margin of about 50%.
Most of the vendors that are active on IAP will be THRILLED if they make THIRTY percent GROSS margin. So, the "average" profit of $30 on that $60 order is reduced to $18. The DIRECT, out of pocket, lowest cost of shipping priority (because these vendors--including us--are not large enough to get the UPS discounts) is $6.ish. Thus, free shipping changes your gross margin on this order to TWENTY percent. From that you still need to pay PayPal, heat, light, employees (or yourself), web fees, etc.
You will find very few, if any, "going concerns" that can operate on 20%, GROSS. For those who love to argue with me---please remember the gross sales of such a company would have to be "in the same ballpark" as the vendors here----WELL UNDER a million dollars!!
FWIW,
Ed
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My source's wholesale/retail and shipping charges have all gone up recently....
We are in a quandry in that we have a lot of customers who want to have their cake and eat it too. They like that we give them low prices on small orders but they want to couple that with low shipping charges as well.
edicehouse
Member
Well duh Smitty, we want our cake, ice cream, oreo's, and what ever else we can get. Let's just be honest, you can find most pen kits dozens of places for roughly the same amount. Most people on here are not making a living of the pens they make/sell, and it is more of a hobby for most. So a few bucks saving is a determining factor.
With the thin profit margins that many of us have on here, more than just one or two of us will be faced with raising prices, and/or increasing shipping costs or showing a profit on only about half of our sales. In short, some of us are reaching the point where we are more profitable with fewer sales - when we reach that point the buyers lose too.
Jgrden
Member
Free shipping on all orders over $200.00 -- WOW what a deal!
Sheesh !!!! :tongue:
Tom T
Member
Being in business costs way more than the average person thinks.
What I want is good service and are willing to pay for it.
I tried to get some TBC stuff but all they would do is email talk.
Well I may be old school but I still wanted to buy something, but I am not sure what I need based on my equipment, so I still have not ordered anything. I think the order would be over $200.00.
On the other hand I got great service from Exotic on a Saturday, for some blanks and kits. Yes they got an order.
Some times in business it's the customer.
What I want is good service and are willing to pay for it.
I tried to get some TBC stuff but all they would do is email talk.
Well I may be old school but I still wanted to buy something, but I am not sure what I need based on my equipment, so I still have not ordered anything. I think the order would be over $200.00.
On the other hand I got great service from Exotic on a Saturday, for some blanks and kits. Yes they got an order.
Some times in business it's the customer.
Dale Allen
Member
Lemme get this straight.
They loose $.90 on a flat rate box so the price is increasing by $.45
And I suppose they will still drop off 25 of those boxes at your doorstep for free.
Excuse me for thinking it but that is no more of a solution that getting out of debt by printing more money.
Is this fuzzy math?
They loose $.90 on a flat rate box so the price is increasing by $.45
And I suppose they will still drop off 25 of those boxes at your doorstep for free.
Excuse me for thinking it but that is no more of a solution that getting out of debt by printing more money.
Is this fuzzy math?
TellicoTurning
Member
The Government said they are losing 90 cents on every flat rate box they ship. BUT they think they can make it up with more volume
AND, Son, I say Son, (in my best Foghorn Leghorn voice) that a joke, a funny, NOT a political statement.
Lemme get this straight.
They loose $.90 on a flat rate box so the price is increasing by $.45
And I suppose they will still drop off 25 of those boxes at your doorstep for free.
Excuse me for thinking it but that is no more of a solution that getting out of debt by printing more money.
Is this fuzzy math?
Reminds me of a day back when I was International Agent for a large international forwarding company.... we were agents for a large computer firm that had plants in Texas, and around the world... headquartered in Texas... the computer company had negotiated their own airfreight rates with a couple of major carriers and we handled the shipments, did the documentation, packed the shipping containers, delivered the containers, etc.... problem was, under the forwarding company's contract with the same carriers, we paid a higher rate than the computer company paid... we actually lost over $100 on every container we shipped... I pointed this out to the international operations manager... his response was... "You just don't understand market share"...
My reply was "I may not understand "market share" as you interpret it, but I do understand bottom line margins... if you pay more than you bill out, you don't have a positive bottom line margin."....