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Shipping Rates

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I'm curious how some of you guys establish your shipping rates? I used to have a flat rate, but I was getting killed on shipping, especially after the post office started their zone rates. I just can't keep up with that anymore. I'm not one for charging outrageous postal fees, but I don't wanna get reemed either :rolleyes:. It seems no matter how I set my rates, I always end up paying a few dollars more than I charge. Do any of you guys have any secret shipping tactics??

Chris

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I have too learned the $$$ way . I charge 2.50 for a couple small lures first class and my bigger musky like lures I charge 4.00 starting . If they have a box included (wood) I charge 5.50 .

Easyiest way I suggest is to take a box packed and ready to ship to the post office and see how much it will be , take a few with you with different quanitys .

I hate suprises at the post office , sell a lure and have to eat some $$$ on a small sale hurts . I dont charge way to much , but I dont get screwed anymore , much .

Get quotes on firsy class and priority , they are so close its worth the extra 10 cents 40 cents sometimes just to ship priority . plus you get free boxes .

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What you want is a shopping cart program that has weight based shipping calculations. You then sign up for a USPS server account that allows you to access their shipping rates based on total product weight and customer zone. You set your minimum shipping price in the software at $3.85. (That is important because of the weights you will use for individual items). The customers are then allowed to pick which delivery option they would like, be it express, priority, or standard. That way the customer can see what they are going to be paying for shipping, and you know what the actual shipping charges are going to cost you.

Once you get your individual product weights dialed, it works like a charm. The hardest part is getting the weights figured so that the customer doesn't pay 20 bucks for 4 bags of worms.

Michele should be able to help you with all of this but if not, I have made huge and vast mistakes in this area so I have tons of knowledge on the subject. :oops:

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There is one more way that works pretty good and saves you the trip to the post office. www.stamps.com

They have a little desk top scale that'll weigh up to 10 pounds and it's great for mailing tackle. Also you can print out 50 stamps per page and address envelops, Insure mail, Register mail and Express mail. All the forms are available through stamps.com I have Priority and express stickers and all kinds of stuff.

You get a CD ROM to download into your computer. You get a Postage Meter License registered to your company. There is a cost for the scale, I can't remember what it was, but it's not much and well worth it. It's really handy to have.

It'll also keep all your names & address, personal or business and an on line record of all your mailings, postage and keeps a running total so you never run out of postage.

We never go to the post office anymore. It's something you guys need to look into if you do much mailing.

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Even if you use a shopping cart, a great way to control your shipping costs is by using US Priority Mail. You will have to purchase a reliable scale, but the Postal Service will supply you with everything you need, including boxes, tape & labels free of charge, & they'll ship the supplies to you for free.

You can easily determine what it will cost for any weight by going to the Postal website http://www.usps.com

Click on the link for Calculate Postage, and follow the instructions.

Priority Mail, can also be tracked by using the Confirmation Service, which is an additional fee if you have it added at the Post Office. You can however print your own Priority Mail labels from your computer, by registering with the Postal service & either using a credit card, or setting up an account. You will need an Ink Jet printer or better.

If you print labels yourself, you have the option of paying the postage online or at your Post Office, and with the electronic label that you print, the confirmation service is free. The labels can be printed on regular paper, or on special label paper, which has a glue side. The label paper has to be purchased, but that can be done thru the Postal Service website also.

Priority Mail also has the added advantage of guaranteed delivery in 2-3 days, which can be a great customer service feature. It does cost a little more than first class if you have to go to the Post Office everytime you ship somthing, but if you take advantage of the services offered, and consider the time saved then the cost is actually less. It's also much less than UPS.

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I have had an account with USPS for a few years. It used to work out great, but I always wondered how you can ship a 3 pound package (priority mail) anywhere in the U.S. for the same price. I just KNEW the post office would change that eventually. Now that the zone rates have been added (they've been in effect for close to a year now I guess?), it has drastically increased my shipping fees. Take that same 3 pound package for example: shipping within my state (California) is about 5 bucks. If I ship that box to New York, I'm looking at about 11 bucks - over twice the amount! Of course, the customer pays for shipping, but I'm a lazy guy and don't wanna take the time to calculate every package before I ship :lol: I have been the victim of "overcharged" shipping rates too many times to do it to my customers, so it seems I always end up paying a couple bucks more than I charge. I have considered going with UPS, but then you lose the free boxes, labels, etc., plus shipping can be much slower; 5-7 days versus 2-3 days.

Well I guess you can tell by my novel that I'm still having problems with shipping rates :lol: Guess my next move is going to the dreaded scale :|

Chris

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Chris, I hate being over charged also, and don't like to charge too much to my customers, however I recently had a customer in NJ place a very small order for jigheads, and when I told him my minimum charge was $5.50 for shipping, he didn't even seem concerned. He just said, that's the way it is. I charged him $2.00 for shipping, on about a $5.00 order.

I think the actual postage was about 80 cents, plus the cost of the mailer & my label, so I didn't lose anything. I didn't feel right about charging him the regular rate on such a small order.

I have come to understand that most folks know they are going to be paying whatever is charged for shipping. I have gradually raised my rates because I was losing money on the shipping. There will always be some people who will not be happy with whatever they have to pay, you can't make everyone happy. But like it or not, if you continue to lose money, if you're like me, you won't be able to afford to stay in business.

At some point we all have to separate personal feelings from business. It's not always easy to do, but to survive as a business it's a decision that has to be made. When I only sold flies, shipping was easy, but after I started selling heavier products like jigheads, it started to cost.

I keep track of my costs on a spread sheet in my computer, and at the end of each week I can see how well I did with shipping. Most of the time, I'm a little ahead, but not much. If I see that I'm falling behind, I know I'll have to change something.

I don't like the rates that are charged, but I do like staying in business!

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