shipping challenge

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Tabitha

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A couple times a year I like to double check my shipping charges.

I challenge everyone to look at the last 20 boxed you sent out. Figure up how much you collected from your 20 customers total, then go see how much actual shipping was on the 20 boxes total. As a collective, were you over or under in your shipping charges?

I will check mine later today or this weekend & report back.

Come on, who is game?
 
I took a quick peak and I charge a tad bit over ususally .50 sometimes a .25.
 
Well.......I can help here. Send me a set of everything, I will give you $5, and then you will be able to calc it up easy. :lol: :lol:

Digit
 
That sounds a bit like you digit.

(I do still owe you a BRV SS.)
 
Did anyone double check their shipping fees?

I did & found I was losing money on shipping. Not much, just a bit. If it only cost 40 or 50 cents to upgrade an order from parcel post to priority I went ahead & sent it priority on my dime, etc. So all of these little dimes added up & over a full week I was short about $5.00 on shipping, so what is $5.00 you may ask? Over a year it is $270 or 15 pounds of fragrance oil.

This week I made sure if they paid parcel, I shipped parcel & that I used recycled envelopes, etc & I actually made a profit of about $5.00 off shipping which over a year is approx $270, so if you add the $270 I did not lose along w/ the $270 I profitted, I can save $540 dollars this year alone by monitoring my shipping a bit closer.

Did I lose you?
 
That really put things into perspective, Tab. I have been mulling over shipping and which way to go with it.

The video that Oceanmember posted a week or so ago had some good points for newbies such as myself. It said that small companies pay over 50% more than they need to. Another video in that series is http://www.sbtv.com/default.asp?segid=1972 This site has been a wealth of info for me, thanks Oceanmember!

As a consumer, shipping can make a difference of whether I order from a place or not.

Digit
 
I actually check that each and every time I mail a package out. I check the amount of s&h the buyers has paid me and what I paid the USPS, and give the buyer a refund of the difference of anything over .99 cents.
 
I doubt I'll get to the point of worrying about standardized pricing for shipping soap, but I do manage quite a bit of shipping of small nursery stock where I work. We do UPS and Priority Mail for the most part.

One big thing to keep in mind with UPS is that they currently update their pricing because of fuel costs almost daily. I do have to give them credit, I've seen their rates drop a couple of times, but obviously not as often as it goes up. If you ship regularly (it doesn't have to be huge numbers, but, say, several boxes a month) you should seriously consider getting an account with them. They'll provide the UPS Worldship software and all the updates free. I don't know if it's because we're a very long-time customer and do a lot of business, but they GAVE me a thermal label printer to use for as long as we're a customer, and they supply all the thermal shipping labels free as well. Having that software on your computer makes it really easy to accumulate data or to look up potential rates for planning, based on size, weight and distance.

UPS Ground rate is still pretty reasonable, and while it may take a week to get something from one coast to the other, in general it will get to anything within one UPS Distance Zone overnight. For example, I'm in the boonies 40 miles south of Portland, OR, and I can ship by Ground to anywhere from the California/Oregon border to the Washington/Canada border and it is delivered the next day. With no extra effort at all on my part, I get huge points with customers for "fast service at a great price" -- and those are words I read here every single time there is commentary about a supplier.

The flat rate boxes for Priority mail are the best bargain around if you or your customers prefer the post office. While they estimate 3 days to anywhere in the continental US, I often get notification of arrival in 2 days unless it's the holiday season. You can pack one heck of a lot of soap or other B&B products in one of those flat rate $9.50 boxes, and I find it works well to encourage customers to load the box. They're often much more willing to add $10 or $20 worth of product with the idea that it's shipping "for free." That's good for sales, too! Plus, those boxes are provided free and you can order what you need, and the mailman will deliver them right to your door. Those are all little things that really add up.
 
Tabitha said:
Did anyone double check their shipping fees?

I did & found I was losing money on shipping. Not much, just a bit. If it only cost 40 or 50 cents to upgrade an order from parcel post to priority I went ahead & sent it priority on my dime, etc. So all of these little dimes added up & over a full week I was short about $5.00 on shipping, so what is $5.00 you may ask? Over a year it is $270 or 15 pounds of fragrance oil.

This week I made sure if they paid parcel, I shipped parcel & that I used recycled envelopes, etc & I actually made a profit of about $5.00 off shipping which over a year is approx $270, so if you add the $270 I did not lose along w/ the $270 I profitted, I can save $540 dollars this year alone by monitoring my shipping a bit closer.

Did I lose you?

I always make sure (I didn't before) that the cost I'm adding also covers samples and only priced for what they paid not more. It didn't make sense to me to lose out even if its .50.
 
...and give the buyer a refund of the difference of anything over .99 cents.
I do this too & it almost always guarentees repeat biz from them.
 
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