...the skivvy
Heya
RickRos,
Believe me, I can understand your sense of "thrift" as it is one of those bug-a-boos that is unavoidable. Here's why...
Anything you ship via ups, is shipped by weight and the "lightest" amount you can be charged for is 1 pound or 16 ounces. Doesn't matter if you order 1 ounce..you still get hit by the "Brown Truck Gangsters" for 1 pound. So why not ship via US Mail? Granted, it's cheaper, but there is no way to track your order if it doesn't show up. Eating the cost of a 1 or 4 ouncer occasionally is no biggie (seeing that I gave away over 4,000 + shipping & handling since June) but I have to make a profit at some point or I'll be selling obsolete MPC Pens on the corner. If your "2-4 ouncers" or "16/4/Precision Lube Kit Combo" gets lost in the mail, then there's no way to know if it's lost or still in transit. With the UPS boys, I've been able to track many orders, and let folks know where it is and when to expect it.
The way paypal works, is that you have to try to transpose "weights" into a cumulative dollar value, which is kind of screwy, but comes close, and then paypal debits me for each sale in accordance with the amount ( roughly 5% per transaction).
There's also that "handling" (that is not even charged for since the UPS Gang bills us for the $6) involving every order usually by me, Val, or Digger. (That 5 dollars shipping charge you pay, costs me $6. I eat one for you
). That involves hand packaging in leak-proof plastic, flyer, copy of invoice, packaged in tube or box, UPS logging and posting, and labeling. All takes time and time is money, as I have to pay my employees too.
Then there's the ones that UPS loses (they're good at that in some parts of the country) sometimes "TWICE". Of course, I re-ship at no cost, pay the freight again and am now in the hole well over 200%. Will UPS reimburse me for the losses? Sure...but unless the loss is over $20, it hardly pays me to do the paperwork and go through the process, which is more costly than the loss of a small order when all is said and done.
This is why I resorted to sending out all of the free samples via US MAIL, as the loss of a few 1 ouncers is cheaper, and they actually seem to lose much less. But if I sent it all out via US MAIL and they lost your 3-16 ounce bottle order, we'd both be pissed.
Also, there is no record of delivery for the US MAIL (1st class postage) and there would likely be a few folks that would be lubing and cleaning their guns with the FP-10 they received while they were calling me to say that it never arrived, and good ol' me would be sending them out another order, "free" which is the long road to going out of business in short.
Starting to get the picture?
I know, it sux, and I don't likle it either because I sell FP-10, not freight charges. If I could get it to you without either of us taking a financial dump, I certainly would. Here's the real kicker...
Let's say you order a 4 ounce FP-10 for $5.37. Add the shipping cost of $5. That's $10.37 you spend total (yep...and 5 of it just to get it there).
Now, paypal clips me on the "gross" (that means "including freight charges") at 5% ($.52) leaving me $9.85. Then the UPS Gang bills me for $6, leaving me $3.85. HOLY CRAP...would you look at this mess !!! I sold a bottle for $5.37...I end up with $3.85 and my expenses are still not cut out. What profit is there here? OOPS...almost forgot...I get back $5 from you to go against the $6 they charged me, now giving me $8.85 gross profit. Sure, my manufacturing costs are lower but if I can't profit to pay my expenses like raw materials, boxes, bottles, caps, labels, employees, utilities, etc., what's the point?
The reality is, that I lose money too on small orders, but make it up on larger orders. The larger orders afford me a larger profit margin by offsetting the cost of materials, whereas before, I had more money in packaging and shipping than I actually did in product, itself.
Well, were learning something in "Business Pitfalls 101":
1.) shipping via UPS sux, but unfortunately, they have a captive marketplace.
2). We both lose when you order small bottles and the like. (of course, 16 ounce and up is much more value for the money (hint))
Well, I know I've thoroughly depressed myself, but I hope I've helped ease the pain and provide a better understanding for you. (where is my Ibuprophen...ugh)
Go for the 16 ouncer...you'll be glad you did, in more ways that one (and I will too
)
Best regards,
George