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Cutting shipping costs

Started by TimsTrim, February 11, 2011, 04:17:05 am

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TimsTrim

UPS and other shipping charges are going up and up as we all know. Just today I got an order from Miami, $55 for the material and $32 for shipping. I envy you guys who are close to suppliers and are able to go pick up directly, but then again, you same guys likely have more competition than I have so it's a wash. Anyway, how are the rest of you handling the increasing costs of shipping ? I am trying to consolidate orders where possible.ie: waiting to order until I have a larger order. Recently I needed 10 sheets of 2" foam for a project and drove the 110 miles round trip to get it and saved the near $100 SHIPPING. Thoughts ?

SHHR

Tim, I'm in the same boat as you and try to consolidate orders. I live fairly close to Louisville and Cincinnati, and far as time it's not a big deal for me to go pick up items, my problem is I drive an F-250 with a 460 that get gallons per mile instead of miles per gallon.

I'll say too, I certainly don't understand the shipping cost (or the logic behind it). I recently did some repairs on a BMW Z-3 that required the airbag sensors and module in the pass. seat to be replaced which is a common repair. I ordered some parts from a BMW dealer online here in Indiana and it took 5 days UPS with a $35 shipping. and I ordered some other parts online from a supplier in California with a next day shipping charge of only $12 from FED EX. Both orders were similar size, weight and monetary value.
Kyle

RiCat

What I have become aware of is the handling fees suppliers tack on in their shipping fees. I am about 40 miles north of Tampa so I use ground UPS the majority of the time. Now, when I had my shop in North Tampa for many years, I had access to one main jobber near downtown. For years I used to run down there to pick up materials. Then I started using other jobbers in Florida and ground UPS. When the order was given in their shipping deadlines / guidelines processing times, I would receive the order the next day. With reasonable shipping fees around $10 to $12, I reconized it was not worth it to me to make a 1 hour round trip to the local jobber to get the material figuring in gas and time. Now what I have become aware of is the extra fees the jobbers will hide in shipping to sometimes cover cheaper prices on materials. Not dealing with over sized package charges from UPS (anything over 61" wide) I did a job earlier in the year that required material from a jobber in Miami. Got the material and the ground UPS shipping was right at $13. Got some more material from a jobber in Clearwater (about 40 miles south) and the ground UPS was $19. WAIT A COTTON PICKIN MINUTE!!! I called them and told them I understand about shipping cost with packaging and such, but I also will be taking into consideration the fact that I don't like the practice of good pricing - specials or whatever - is made up in another area that is hidden. Another jobber that I use will give fair shipping charges and if part of the order has to come out of state from another of their stores, the shipping is half price. With all  that being said, yes, everything is going up in cost. It is up to us to be aggressivley creative, but also something that is just going to have to be passed on to the customer, just like things are passed on to us.

Rick

TimsTrim

Being at this game for nearly 40 years, I look at jobs and make the estimate from that experience. My thought now is that I will have to come up with a price in my head and just try to add about 10% on top of that to help the increased cost of shipping . I feel it's better to "hide " the increase in  the estimate rather than tell the customer that there is an add on for shipping. Most customers have no sense of what the shipping can be and it's better to not even go into it with them.

sofadoc

Tim: I'm always getting calls from foam places that offer free shipping on orders over $100.
I never take any of them up on it, since I have a supply truck that delivers free monthly.
I know what you mean about the disparity on fabric shipping costs. It doesn't make sense when a 2 yard order costs almost as much to ship as a 25 yard order.
But $32 shipping on a $55 order is way out of whack.
"Perfection is the greatest enemy of profitability" - Mark Cuban

Dede

Try this...

Open your own UPS and FedEx accounts
(it's free).  Ask (insist?) that vendors ship on YOUR account.  You will need to link shipping accounts to a bank account for automatic withdrawal, so just keep track of what you spend.

You can view your shipping account on-line anytime with a complete breakdown of charges (plus they send reminders of recent activity via e-mail).
West Village Studio
www.workroombuttons.com

kodydog

I meet my supplier in the nearest city they do business. About 25 miles away and combine this with P/U's and Dels. $300 min order so I order three months worth.
Not much you can do about fabric orders except try Dedes idea. I'm not real crazy about automatic withdrawals but maybe this would work for you.
There cannot be a crisis next week. My schedule is already full.
http://northfloridachair.com/index.html

Dede

Quote from: kodydog on February 12, 2011, 08:42:06 pmI'm not real crazy about automatic withdrawals but maybe this would work for you.


Oops... I messed up.  The shipping companies (UPS and/or FedEx) would have your debit or CC (NOT your bank account number -- my mistake).  You provide your vendor with your SHIPPING account number (UPS or FedEx) -- this way they can't pad your shipping cost with other charges.  Assuming they agree to this, of course.

My apologies.  It's been a rough week.
West Village Studio
www.workroombuttons.com

Mojo

One of the very worst for making money off you on handling charges is Rochford. They are bandits.

I just ordered some material from Miami and I felt the shipping costs were fair.

There are numerous companies out there who are padding their shipping charges to make money.

I paid $ 100 for shipping when I bought my machine from Bob Kovar. This included the machine, table, servo motor, etc. I thought that price was awesome. Then Rochford charges me $ 50 bucks for a couple small rolls of vinyl. It just pisses me off to no end.

Chris

SHHR

Quote from: Mojo on February 15, 2011, 04:29:02 am
One of the very worst for making money off you on handling charges is Rochford. They are bandits.

I just ordered some material from Miami and I felt the shipping costs were fair.

There are numerous companies out there who are padding their shipping charges to make money.

I paid $ 100 for shipping when I bought my machine from Bob Kovar. This included the machine, table, servo motor, etc. I thought that price was awesome. Then Rochford charges me $ 50 bucks for a couple small rolls of vinyl. It just pisses me off to no end.

Chris



Two years ago I badly needed some material, quick that wasn't available locally. I ordered from Rochford overnight shipping. I forget the amount now, but it was twice the amount of my order. The bad part was I needed that material due to my goof up and had to eat all of those costs.

On another note, I used to buy from e-bay alot. I'd use pay-pal and pay the specified shipping on the order, then when I get the package I could see the actual amount spent for shipping (usually USPS orders) and it was always way less than what the seller charged me.
Kyle

regalman190

I just placed an order with Miami last week. $47.00 worth of product shipped from two different locations, three separate shipments at a cost to me of over $35.00. Unbelievable.
Regal Canvas

Mike8560

This is a bad subject with me
I odder with couple rolls maybe a smal box
I
way seeing 40 bucks shipping. Or 50.
I really hate it when I call I. A order and e ergthi g is here in fl. Ut one item will ba e to. Ome from up north addi g to the shipping.  I went to myocal fabric shop today
a d got some 2" firm foam noshiping   I send about rhe same  but saved probly $40 shipping.

Adding the 10% tim is what you have to do but it hard when the customers are reluktant to spend anyway and are price shooping.