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Shipping & Handling,why So Much On Handling?

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Old 01-01-2003, 02:18 PM
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art43
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Default Shipping & Handling,why So Much On Handling?

Why is it when you get your $40.00 + $7.00 shipping & handling item, you look on the shipping tag and it sayes $2.25? Does it cost $4.75 to handle and put 4 items in a baggie, or is this another way to get a couple more bucks out of you? Manuf. Rep. feel free to jump in.
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Old 01-01-2003, 02:36 PM
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Default Shipping & Handling,why So Much On Handling?

Another scheme to get a few more dollars out of us. One of the things I consider when looking for the best deal is how much is the S&H.

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Old 01-01-2003, 02:45 PM
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Default Shipping & Handling,why So Much On Handling?

As a vendor I can tell you why there is a handling charge.

It takes time, materials and equipment to process orders. Most vendors do not make a large margin on items they sell. For example, if you order a fuel take for $4.95 for an on-line hobby shop they are most likely only making 10-15% (if that) markup on an item. that translates to .75 max in our example. That will not pay the 5-10 minutes of labor for someone to pull the item from stock, the 5 minutes to package and process the order for shipping and to help pay for all the equipment, the box and packing materials used to send the order. It's just a way to recover cost and offer more competitive pricing.

I'm not agreeing that it is the best way to do business but that's why it's done. If every vendor decided to just absorb the "handling charge" into the product there would be a slight increase in the product's cost to the customer. Problem is if Vendor "A" did it and no other vendors did it you would say "Oh Vendor A charges .50 more than everyone else so I'm not gonna buy from them.

See where I'm going with this? It's all just another way to offer lower product cost and cover expenses.
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Old 01-01-2003, 04:33 PM
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art43
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Default MIKE

Yes, Mike, I see what you are saying. But, a lot of the stuff we buy is from small, one-man operations, with two or three items. It takes about a minute to stuff the items into an envelope and then charge $5.00 handling. Most of these guys can charge within reason whatever they want. I would rather pay $3.00 more than feel like I am gettng ripped off on handling. I know there are others that feel the same as me.

I would like to have a job stuffing envelopes for $5.00.

My .02 worth. Art43
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Old 01-01-2003, 04:48 PM
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Default Shipping & Handling,why So Much On Handling?

I would agree that some of the operaters are overcharging on S&H. You have to be especially watchful on Ebay. Some of them are charging $12 S&H(continental US) for an item weighing barely 1lb packaged up....ie: an engine. And many of them are using free boxes from the post office, or reusing old boxes they have laying around.

So make sure you know what the S&H is before ordering, sometimes you can get it adjusted to actual shipping cost.
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Old 01-04-2003, 02:33 PM
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Default extra profit??

I do agree with Mike.... somewhat. I am just guessing, but I will bet out of 10 mail order establishments, 9 will be making a profit from their S&H. I am very lucky and have a LHS that matches most prices at Tower mail order and they are 10 minutes away. Some prices are even lower for some items. Problem is... now the State has their hand out, collecting 6% sales tax. We are wired in one way or the other. I still like to use the LHS because it supports our "neighbors". Beside that..... there are always several club members shopping there that I don't see all the time, (especially this time of the year in IN).
Just my opinon........lownslo
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Old 01-04-2003, 02:48 PM
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Default Re: extra profit??

Originally posted by lownslo
Problem is... now the State has their hand out, collecting 6% sales tax. We are wired in one way or the other. I still like to use the LHS because it supports our "neighbors". Beside that..... there are always several club members shopping there that I don't see all the time, (especially this time of the year in IN).
Just my opinion........lownslo
Your right... We always get a few folks to place an order together to cut down on the shipping and handling cost.

I was not speaking for every single vendor in the hobby. I was only speaking of businesses that I personally know of. However I do agree that a very small group of vendor possibly add a "handling" fee to make an additional profit. Contrary to what some people may believe most business owners are not out there to cheat people out of their money. Every small home run business I know that sales product do it for one of two reasons. to supplement their income so they can pay for this hobby or it is their full time job and want to give great customer service so folks will continue to buy from them.

My 2 cents! :-)
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Old 01-04-2003, 06:19 PM
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Default Shipping & Handling,why So Much On Handling?

Well I'm a small vendor and to ship and handle our covering I charge $6.00. I firured out the cost of the container, postage and then me having to go to the post office to ship, gas for the car it about works out to a .25 profit. Now I know I won't get rich on that one. It takes time and materials for me to get a shipment ready as there are labels to make, invoices, all takes some time. I wish it was as easy to just drop it into an envelope and it somehow gets shipped out by itself.
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Old 01-04-2003, 07:00 PM
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Default Shipping & Handling,why So Much On Handling?

I also agree with Art, my shipping and handling covers materials. It's not just a matter of stuffing it into a box but the time it takes to go out and buy the box or boxes, package the item then having to go out and take it to the post office or FedEx depot.

Since I'm not a large volume manufacturer (yet) I only buy a few boxes at a time. If I need a small box, Staples has it. If I need a large box then I have to go to a larger cardboard distributor to get what I need. I could spend 3/4 hr to find the items I need for shipping, then to actually ship the item could take another 1/4-1/2 hr. So for the $5.00 handling charge for an hour worth of running around, how much of that is profit?

Now for the larger manufactures who sell $1000 planes I tend to agree with the rest of you. For that price, should you really have to pay an extra $5-10 when that cost should already be covered.

Only my opinion.
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Old 01-04-2003, 09:27 PM
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Default Shipping & Handling,why So Much On Handling?

I agree with you guys. I am not in business but have sold items on Ebay. I generally don't charge over and above cost but then I time my post office visit to when I am going in that direction. I also don't buy shipping stuff and use scrap boxes. I'm also selling stuff generally that is good but of no use to me and anything I get for it is great. In business you can't do that. $5 for a charge would not cover labour and vehicle cost unless there is some volume. My advice to anyone upset about small charges, start a small business and don't charge for your time. Start with $200,000 and you will be worth $100,000 eventually.

I do avoid the $10+ H charges and deal with other people when purchasing because I don't like being ripped off.
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Old 01-04-2003, 11:09 PM
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Default Shipping & Handling,why So Much On Handling?

What are you going to do? I shipped out two boxes yesterday. I may have gone over board, It cost me$ 6.26 to send an item that I sold for $20.00 shipped ,other cost$ 9.38 for a $75.00 item, did get 5.00 on that one.These were USPS ,insured,certified fee,return receipt fee,& restricted delivery fee,did I do wrong?? This was just postal fee, no box, tape ,label,or drive to PO. What should I try next ???>>>>>>>>big max 1935
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Old 01-05-2003, 12:16 AM
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Default I need to clairify my thoughts posted.

My apoligies to you small business guys I may have offended. I can understand ALL the things you mentioned about driving to get supplies, cost of materials etc etc. My thoughts were TRULY not with you smaller vendors in mind. My mind was "tunnel visioned" on the big volume guys!!!! I have purchased a lot of mail order stuff, 99% of it from these large dealers. Anywhere from small tools to clothes I always cringe when I have to add $6.00 S&H for one or two small items. Your posts have opened up my eyes to several things I didn't think about..... even for the big guys. Bottom line..... I still like dealing with my LHS, because of the reasons I listed in my other post which deals with more than the "cost" issue.

Small vendors...... please accept my apoligies for any bad raps I laid on you guys.

PS.... I recently purchased some fastners from a guy on the east coast. I spoke to him on the phone and what a nice guy. I even had a conversation with him ... like are you the owner?, and I had the feeling he was working out of his home. I paid the S&H and never gave it a 2nd thought. Since your replies though, I can now picture this guy, trying to buy boxes, go to the PO, the labor of packaging 24 or 100 fastners from his bulk supply, etc, etc..... later.....lownslo
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Old 01-05-2003, 04:35 AM
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Default Shipping & Handling,why So Much On Handling?

No apologies necessary to me. I also do not like paying $5 handleing on a $20 order, so I wait till I need $100+ worth of stuff to make it justified. If I really need something really bad I try the local hobby store, but 9 times out of 10 they don't have what I need. I hate our local store. Now if I only had the cash to start my own store.........
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Old 01-05-2003, 05:18 AM
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Default Shipping & Handling,why So Much On Handling?

The little hobby shops don`t have it all that good either. They pay to get it there ,have to store it, and then listen to you when you don`t have what they want. One of the major suppliers dropped our LHS because he couldn`t buy $300.00 a month minimum.Thats pretty hard to do when all he handles is air plane stuff. I think I am just going to ask , how they want it shipped.I feel that once they pay for it & I ship it I have finished deal. It just costs to much to have all that protection. MAX
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Old 01-05-2003, 06:40 AM
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Default HANDLING

I started this thread to get some views,and I got them. Some I agree with. My wife has a small mail order business on EBay and she does't charge for handling.She rounds off her shipping costs to the next highest doller. Her boxes cost average $0.27 (10x5x4) Her bigest (10x10x10)$0.78. You know what she pack them with, newspaper,"ect." Plus she gets lots of free boxes & packing from her suppliers which she reuses. I still think $5.00 +, is to much for a 5x5x5 box with 4 items is to much. It just looks bad.
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P.S If you won't look up the price of boxes www.packmart.com
'
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Old 01-05-2003, 01:41 PM
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Default Shipping & Handling,why So Much On Handling?

As I mentioned before... I am fortunate to have the LHS that is only 10 min. away. The lady that runs the shop does a great job, can answer a lot of questions, and has guys from 2 different clubs working part time for her. (her hubby works there too... more on a part time basis). These guys are top builders and flyers at that. The Mr. and Mrs. that run the shop also belong to those two clubs and are active members. SOOOOOO ..... we club members try to buy all our stuff from them. In return they donate monthly door prizes, raffles, etc. for club meeting and events, AND offer us Tower prices, OR real close. They only handle airplanes and will even sell your plane for you. (they let us hang them from their ceiling when there is room). I was in a thread a while back and found that some shops are horrible to shop at. I could not believe some of the stories the guys were telling. (or they had to drive 50 miles etc). I truly wish you all had a shop like this one. .......lownslo....
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