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  1. #1
    Join Date
    Feb 2008
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    Default higher shipping or higher prices?

    Hello, I am trying to match my competitors or make it better, They have shipping that is:
    Economy Shipping
    (for orders over $50) 7-10 Business Days USPS FREE* $0.75 per pound
    Ground Shipping
    (for orders under $50) 2-6 Business Days UPS $11.99* $0.75 per pound
    My drop shipper is as follows:
    LBS Shipping Cost:
    1 $8.67
    2 $9.14
    3 $9.34
    4 $9.57
    5 $9.81
    6 $10.12
    7 $10.39
    8 $10.85
    9 $11.06
    10 $11.43
    11 $11.81
    12 $12.47
    13 $12.96
    14 $13.30
    15 $13.88
    16 $14.59
    17 $14.93
    18 $15.54
    19 $16.13
    20 $16.73
    $2.00 handling charge applies to every order
    $2.50 minimum order charge applies to invoices below $16.00 (before shipping)
    Ect....
    My shipping table: 1:10.99,2:11.99,3:11.99,4:11.99, 5:11.99,6:12.99,7:12.99,8:12.99, 9:13.99,10:13.99,11:13.99,12:14.99, 13:15.99,14:15.99,15:16.99,16:16.99, 17:17.99,18:17.99,19:18.99,20:18.99

    Try to cover for the $2.00 handling charge. I try to offer low prices like my competitor. I think where they are able to make their money is the 75cents per pound added to the shipping price? I offer free shipping for orders over $50 and under 15lbs but I loose tons of money, so i either raise prices or get rid of the free shipping and lower shipping rates and raise prices!?!?!?
    ****Please put in any personal experience of what is better to do. Thank you.

  2. #2
    Join Date
    Feb 2008
    Posts
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    Default Re: higher shipping or higher prices?

    I think you should keep it real with your customer and stay away from hidding fees. Free shipping is always good, I guess you can increase your shipping charges. You will have to increase the shipping charges anyway since the shipping fees are going up with all shipping companies including Post Office starting next year. Do you think that your competitors are taking your customer away because of 75cents???

    I would elaborate more If I knew what industry you are in.

  3. #3
    Join Date
    Feb 2008
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    Default Re: higher shipping or higher prices?

    I sell pet supplies... the .75 cents the competitor charges $11.99 to ship ground but then if its more than a pund they charge .75 per lb so if they order something 20lbs they charge like this: $11.99 (.75x20) $15.00 +11.99 = total charge for shipping is 26.99.... I know that hows they are able to charge alot less for their product because they make the money with shipping. I think my prices are very good. But see i got customers that will spend then $50 then it cost me $10+ to ship so i loose that profit. So I make $1.00? so Price increase maybe i guess. I just had my product real low to get the customers to me and but low prices and free shipping on $50 isn't working so i have to change one. heres my store Im just trying to find my niche. I also found someone that uses the same distributor and they mark up everything is 45% marked up from what they get it for. What is a good % to raise prices? I think my main thing is getting my site out there. Tried everything I know of.

    -**thanks for the reply

 

 

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