Guest PassionSunKiss Posted March 17, 2011 Share Posted March 17, 2011 I just read that on April 17th, USPS shipping rates are going up. When do you notice it being cost effective to offer free shipping to customers? Is there a way to calculate IF it's even a cost effective way to attract customers? Right now I'm just selling body butters. Package and all they weigh about 10 oz which will cost about $3/jar to ship. Quote Link to comment Share on other sites More sharing options...
TheWickedWick Posted March 17, 2011 Share Posted March 17, 2011 Check into using the USPS Regional Flat Rate boxes..they have two different sizes. You buy the postage on line for them and the boxes are free to order on line too. The post office doesn't stock them..or at least mine don't. Quote Link to comment Share on other sites More sharing options...
Bernadette Posted March 17, 2011 Share Posted March 17, 2011 Regional USPS boxes cannot be picked up OR dropped off at the post office. They must be ordered online, and your postman must pick them up. Quote Link to comment Share on other sites More sharing options...
TheWickedWick Posted March 17, 2011 Share Posted March 17, 2011 (edited) I drop mine off at the p.o. all the time. They've never said anything to me or had one returned. I'll have to check this out next time I'm there just to make sure I don't encounter problems. If it is..it's not a big deal to request a pick up.Just read the info at usps.com apparently I've just been lucky. Will request pick up next time. Thanks for the heads up Edited March 17, 2011 by TheWickedWick more info obtained Quote Link to comment Share on other sites More sharing options...
Candybee Posted March 17, 2011 Share Posted March 17, 2011 I take mine to the PO too. You order the boxes online thou and print out the postage online with click 'n ship. I just started using it and am so happy about the money I am saving. Quote Link to comment Share on other sites More sharing options...
Bernadette Posted March 17, 2011 Share Posted March 17, 2011 I was just reporting what is says online. You guys have been lucky that your post office would take them...but be prepared if you go there someday and they won't. They're not supposed to...that's the reason they're giving the reduced rate...so they won't need as many employees at the post office(per the 800 #).:tiptoe: Quote Link to comment Share on other sites More sharing options...
TheWickedWick Posted March 17, 2011 Share Posted March 17, 2011 Yep..I'm now going to request pick up from now on..just to play it safe. Don't want my luck to run out! Quote Link to comment Share on other sites More sharing options...
AlwaysWondering Posted March 17, 2011 Share Posted March 17, 2011 I just read that on April 17th, USPS shipping rates are going up. When do you notice it being cost effective to offer free shipping to customers? Is there a way to calculate IF it's even a cost effective way to attract customers? Right now I'm just selling body butters. Package and all they weigh about 10 oz which will cost about $3/jar to ship.There is no doubt customers LOVE free shipping. We crafters are no different, many times the shipping charges our fragrance oils suppliers charge comes up as part of discussions. I think you just really have to sharpen the pencil, know the cost of good plus shipping and figure out when or if you should offer free shipping.Have you ever run a free shipping special to see if it greatly increased sales? I ordered the regional rate boxes. I'm planning to lower my shipping costs overall to my customers. I'm thinking this economy is going to tank again, very soon, and need to keep cash flow coming in and cut profit. Certainly don't want to lose money but I have a lot tied up in inventory and I need to keep it moving and cash coming in even if it is at a lower profit. Quote Link to comment Share on other sites More sharing options...
Guest PassionSunKiss Posted March 17, 2011 Share Posted March 17, 2011 I do know about the free boxes and whatnot but postage in general can be costly. Do you guys do something like, if they spend $30 you do free shipping? Or do you just tack on the shipping charge to the total? Quote Link to comment Share on other sites More sharing options...
Guest PassionSunKiss Posted March 17, 2011 Share Posted March 17, 2011 There is no doubt customers LOVE free shipping. We crafters are no different, many times the shipping charges our fragrance oils suppliers charge comes up as part of discussions. I think you just really have to sharpen the pencil, know the cost of good plus shipping and figure out when or if you should offer free shipping.Have you ever run a free shipping special to see if it greatly increased sales? I ordered the regional rate boxes. I'm planning to lower my shipping costs overall to my customers. I'm thinking this economy is going to tank again, very soon, and need to keep cash flow coming in and cut profit. Certainly don't want to lose money but I have a lot tied up in inventory and I need to keep it moving and cash coming in even if it is at a lower profit.True, true. So should I just tell them what it costs and if they want the product bad enough they'll pay for it? My fear is the postage will deter business. Quote Link to comment Share on other sites More sharing options...
B@BlissStreet Posted March 18, 2011 Share Posted March 18, 2011 I was just reporting what is says online. You guys have been lucky that your post office would take them...but be prepared if you go there someday and they won't. They're not supposed to...that's the reason they're giving the reduced rate...so they won't need as many employees at the post office(per the 800 #).:tiptoe:Our mail carrier is a cousin. She receives a pay incentive for every package she picks up that is requested for carrier pick-up. She constantly thanks me for the use of this service. If a simple click of the mouse can keep our dependable carriers working, I'm all for it! Please utilitze this USPS.com option. It makes a difference. Quote Link to comment Share on other sites More sharing options...
TraciS Posted March 18, 2011 Share Posted March 18, 2011 WOW, I did not know this. Our mail carrier is great and he can pick up everything if he gets an incentive too. Will have hub ask him; hub waits for the guy to come a few times a week and they trade insults like get a haircut and a real job, etc-lol. Our mail carrier is a cousin. She receives a pay incentive for every package she picks up that is requested for carrier pick-up. She constantly thanks me for the use of this service. If a simple click of the mouse can keep our dependable carriers working, I'm all for it! Please utilitze this USPS.com option. It makes a difference. Quote Link to comment Share on other sites More sharing options...
AlwaysWondering Posted March 18, 2011 Share Posted March 18, 2011 True, true. So should I just tell them what it costs and if they want the product bad enough they'll pay for it? My fear is the postage will deter business.I don't think you should let your customers know the cost of anything, including postage. Something like that could sound narcissistic. Do you already have a strong following that use shipping? Have you always sold at craft fairs and home parties and just now venturing into shipping your products?I still say take pencil to paper. If your body butter is priced at $10, and shipping is $3, that leaves $7. You need to know your accurate cost of goods to make one jar of butter plus packaging. If your cost of goods is $3, that still leaves you $4 of profit per jar if shipped for FREE. If you charge the shipping, the your profit would be $7. How many more will you sell with free shipping to justify the drop in profit if you have free shipping? Will you make it up in volume? Don't know. Quote Link to comment Share on other sites More sharing options...
marcuset Posted March 18, 2011 Share Posted March 18, 2011 I know many customers prefer to know you are only charging them actual shipping cost. While I agree they don't need to know your cost of materials, etc. - shipping is something I don't have a problem with letting them know. Quote Link to comment Share on other sites More sharing options...
marcuset Posted March 18, 2011 Share Posted March 18, 2011 The market is so saturated with our craft right now. Tough decisions to make to stay afloat. Quote Link to comment Share on other sites More sharing options...
Noodle Posted March 18, 2011 Share Posted March 18, 2011 I know many customers prefer to know you are only charging them actual shipping cost. While I agree they don't need to know your cost of materials, etc. - shipping is something I don't have a problem with letting them know.I do not charge actual shipping and never have. There is roughly $1.00 - $2.00 that I add onto every order, depending on the size of the order. I have found that this method works so much better than to add these costs into the prices of my products. My customers are so surprised by my inexpensive products that a small handling fee is not too important to them. I do not have a "handling fee". It just shows up as part of the postage. For example, I charge $5.95 to ship a flat rate envelope or a small flat rate box. Quote Link to comment Share on other sites More sharing options...
marcuset Posted March 18, 2011 Share Posted March 18, 2011 (edited) So glad that works for you! Not a bad idea. Edited March 18, 2011 by marcuset Quote Link to comment Share on other sites More sharing options...
AlwaysWondering Posted March 19, 2011 Share Posted March 19, 2011 I know many customers prefer to know you are only charging them actual shipping cost. While I agree they don't need to know your cost of materials, etc. - shipping is something I don't have a problem with letting them know.My post didn't sound right. And I think I didn't read the OP right. Yes, I do let them know shipping prices right on my site before they order. I thought she meant should she "justify" what she charges for shipping to her customers. My bad. Quote Link to comment Share on other sites More sharing options...
Candybee Posted March 20, 2011 Share Posted March 20, 2011 Periodically I do a free shipping with a minimum purchase on my website. I advertise with a mass customer email promo online and also at local craft shows. I usually get a good response. Quote Link to comment Share on other sites More sharing options...
lauramw71 Posted March 20, 2011 Share Posted March 20, 2011 Hmmm wonder if my PO will let me drop these off if I ever use them. I don't get mail delivered to my house, I live in a small town and have to use a PO Box... I'll have to look into that! Quote Link to comment Share on other sites More sharing options...
Flickering Dream Posted March 22, 2011 Share Posted March 22, 2011 Let's not forget the cost of shipping is also a write off at tax time, allowing you to reduce your bottom line too.Just something to consider when thinking about including shipping. I by no means mean to do it all of the time.Tom Quote Link to comment Share on other sites More sharing options...
LuminousBoutique Posted March 22, 2011 Share Posted March 22, 2011 I think its something you have to be very careful about... if I'm charging 5.50 per bar of soap and offer free shipping, thats 2.20 out of the bar, leaving only 3.20 behind- not counting listing fees, paypal fees, supplies.. well, thats not much left over but.. I have run promos where 6 bars purchased at full price ship free- which only costs me 4.90 (padded flat rate envelope) so works out to a decent sale for me and my customers once a year or so. Quote Link to comment Share on other sites More sharing options...
marcuset Posted March 22, 2011 Share Posted March 22, 2011 I agree Luminous. My products, due to packaging, aren't cheap to ship, so I have to be careful if I want to continue to make tarts. Quote Link to comment Share on other sites More sharing options...
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