What should i do?

[Jodi L Aherns]

I can no longer afford to lose money on shipping.With the new price hike with UPS so here are my thoughts.

 

[Glenn Bartley]

I would not think anyone could afford to lose money, is that how you were doing business all along! Don't lose anything if you can help it. Charge the actual rate for shipping to include: shipping via UPS, any shipping insurance, heat packs, cool packs, packaging matrerial and so on. There are more ways than you mentioned to do this. For one, why not just set a price for your geckos and say plus actual shipping and handling. Actual shipping is pretty easy to figure out if you have a fairly accurate scale and, a scale is not all that expensive an item. Then charge the price of the Gecko $35 (for example), plus $35 for shipping (for example) plus $5 for box, insulation, heat pack, inner container etc... Or charge the average cost of handling (packaging materials etc...) in the price of the gecko and add on actual shipping.

As for gas costs, do you mean you driving items to UPS? That should probably be figured into the price of the animal. If you are actually riunning a business then using your car to transport (only the use to carry out business as I understand) these animals may be tax deductable as would many of your other expenses. That is of course if you claim all the income on your taxes.

You should never be losing money on things like shipping and handling unless of course you are just not selling enough animals and the whole business is not making money. In other words, always charge enough to make your money back and get some net profit or at least try to do so - again that is - if actually in it for the business.

 

[Xavier]

I feel its fare if

You charge the buyer the total cost of shipping or and box and heat or ice pack cost. I totally understand that if you sell 100 plus geckoes loosing $5 each thats alot of money while if I purchase just a few geckos a year thats not nearly as much on my end. Why should you as the breeder be loosing money anyone wanting to be skippy on 5-10 dollars more on shipping well maybe they shouldn't have a leo.

 

[Gregg M]

5 bucks for gas and time??? Think of your buisiness as a job..... If you got a job 40 miles from your house would your employer pay you for the time it takes to get to and from work and the gas you put in your car???? Just charge the 50 dollar flat rate..... Besides, does it really matter how you break it down to equal 50 bucks???? LOL

 

[Glenn Bartley]

While you should never necessarily look at your BUSINESS as other than your business, let's take the look at it like a job. Gregg, I think, misses the point that if you get to work, and your boss then says:

1) go to place 'A' some 50 miles away and use your own car

2) then go to place 'B' another 30 miles further

3) then go to place C another 50 miles further

well the boss sure does pay. He not only pays for your mileage, but also pays for you to stay overnight in a decent hotel and pays for your meals and pays for any other business incurred expenses. These are the boss' business expenses, and the boss had better be selling a product at a good enough price to cover all of this. If you as an employee run all the errands without getting reimbursed, or without at least getting a salary that covers all of this, well then you are nuts or very well off financially!

Remember, we are not talking about driving back and forth to work. We are talking about expenses that are the cost of doing business, not the cost of getting to an from your place of business from your home such as driving to work. There is a big difference between them.

 

[Jodi L Aherns]

As of the first of the year i have lost money on shipping.I have only sent out 10 boxs so far,but have lost $42.00 on all them added up.I ship around 300 boxes are year.In past years the $40.00 i charged for shipping coverd about 99.0% of the cost,i have never charged for the box or heat packs.But people want to spend as little as they can on shipping.I have lost around 6 sales this year because of the $50.00 shipping charged i need to charge.The 12x9x6 box i use is now charged the dim.weight not real weight,that is why shipping price went up.I just found this out on Friday got a new bill from UPS,they made a mistake now i have to pay for it.I will fight this with them.I am looking for your 2 cents on this.I have allways keeped my price on my geckos very fair and shipping.I just can not lose any more money this year.I hope this makes sence to all of you.

Gregg i drive a company car for work so yes they do pay for my gas to and from work.

 

[leaftail]

If people are not ready to accept a $50 shipping charge, then charge $40 and raise the price of the geckos. Everyone who ships is in the same boat, and will have to be making the same decisions. Eventually buyers will get used to the latest increase in prices just like they did when it went from $25 to $35, and etc.

 

[KelliH]

Yeah shipping is getting higher and higher each year. I remember just a few years ago charging $20 for Express Mail shipping, but that was in the good ole days (pre 9-11). I am now charging a flat rate of $45, and usually the shipping is between $40-$50 (I use Fed Ex Priority Overnight) so it evens itself out. I think you should figure out your average shipping cost, charge that, and if you need to raise the cost of your geckos by $5-10 so be it. If your customers really want the animal(s), they will pay your price.

 

[Golden Gate Geckos]

ditto

Jodi, I agree with Laura and Kelli... raise the price of your shipping costs and your geckos. As a consumer myself, I would much rather pay more for a great product if I thought I was saving on shipping! Somehow, it doesn't seem so bad to have to pay $5 more for shipping if the gecko costs more. It's when the shipping is more expensive than the gecko that is the biggest problem.

(LOL! It must be a psychological thing, because I would much rather pay $59.95 on a pair of size 10 jeans than pay $19.95 on a pair of size 14's even if they both fit the same!)

 

[Gregg M]

Glenn, I did not really miss the point..... I was making a joke about it actually.... Also the point I was getting across is that you need to take all of these things into account when you are selling these animals anyway...... These things are just part of the buisiness..... If the cost of shipping goes up then naturally the overall price of the animal should go up...... It does not matter how you break it down to equal the same price.....

 

[progeckos]

A lot of people do complain about high shipping costs. For me the shipping price is the cost of doing business. I also agree with everyone as far as raising the price of the animals by a few dollars. If a customer wants a product they’ll pay for it whether it be the shipping or the product.

 

[Xelda]

I think you should raise the price of the geckos a bit but still put the bulk of the difference in the shipping quote. People need to get a sense that the price of shipping is increasing. The reason why you're losing business is probably because those people see others still asking only $35-$40 for shipping. It's not that they can't afford the extra $10 you're asking; they probably just think you're trying to scam them. There are still morons out there who think charging $40 for shipping is a rip off because they run into breeders who charge $25 to ship USPS.

As long as there are sellers still charging only $35 for shipping, then buyers will be unaware that there has been any price increase at all. It would help if more sellers would raise their shipping prices collectively.

 

[ShannanD25]

We've been throwing around the idea of including shipping in the price of our geckos. I am a big Ebay person. When I see someone charging $10 shipping for a $5 item I dont bid because I know I might be able to find that same item for less shipping. Once I became an Ebay seller I realized how shipping costs eat into any profit you might have. I'd rather pay more for the item and have the seller say, shipping is included. I don't think our customers will understand a price increase as they aren't in our shoes. So we will have to be more creative in our pricing. Just my thoughts.

 

[Golden Gate Geckos]

Hmmm...

People need to get a sense that the price of shipping is increasing. The reason why you're losing business is probably because those people see others still asking only $35-$40 for shipping.

You make an extremely valid point I had not considered. People already think that we are ripping them off when we charge $40, when in reality we are losing money. I just don't see how those that are charging $35-40 will be able to continue to do that.

 

[leaftail]

I had someone tell me that the $40 I asked for shipping was outrageous. I gave him my zip code and had him go to the UPS time/cost calculator and see for himself. He checked, and admitted that my price was fair (but he didn't buy from me).

Now I make it a point to mention UPS's calculator and offer my zip code to inquirers before the issue ever comes up. I don't know if it helps my sales, but at least hopefully it helps people understand its a legit shipping cost.

 

[WizardLizards]

Raise the price of the geckos!

Like someone said, I believe it was Marcia, the consumer would be more willing to pay more for a gecko if he/she thinks they are getting a good deal on shipping. Compensate for the increase in shipping by adding the difference to the gecko, and keep your shipping price low. Do me a favor though, wait until I buy another gecko from you.

Thanks
Tony

 

[montezuma]

Jodi,
I too have lost alot of money so far this year on shipments. On 3 shipments I sent out on one day I collected $120 but it ended up costing me $166. I have managed to get others closer ti the $40 I charge by using different box sizes but still end up losing $3-5. My solution was put into effect last week... I changed my shipping pricing policy to the total shipment price quoted on UPS.com from my zip to theirs.
I don't think there are too many people that will see what the calculator gives for a total and freak out on what you want to charge.

 

[gcsreptiles]

I still like using a flat rate shipping cost, that way there is no guessing for the customer when they order and no wasting time going back and forth with people getting shipping quotes. Will they buy or not (you guys know how it goes)? It's hard enough keeping up with the emails, much less having to get them a shipping quote every time as well. We generally ship using 15x11x7, 3/4" Styrofoam lined boxes (just my preference) and shipping has averaged $48-$55 per shippment since the new UPS policies. By using the 12x9x6 boxes it knocks about $5-$10 off each shippment. We raised our flat shipping rates to $45 per box and will use the 12x9x6 boxes whenever possible. Should break about even if I'm figuring right. Get a little here and lose some there, that's basically how the $35 flat rate worked out anyhow. We'll see how it goes for a little while and re-evaluate (sp?) it later.

As far as trying to offset the prices of shipping in the geckos, that's fine for the high end stuff or on larger orders, but as for the lower end animals there's really no way to do it. Then all you would hear is "joe shmoe" has them for this much, why are yours more expensive. Then not to loose the sale, you cut the price to match and you're right back in the same situation. Loosing money on shipping costs.

These guys that are keeping their prices at $35 will learn sooner or later. Either they don't sell enough to really make a difference or just don't care and will spend a dollar to save a dime burning themselves in the end.

Just my thoughts.

 

[Clay Davenport]

It's my opinion that you will lose a sale faster due to high shipping costs than to higher animal prices. For instance more people will buy a gecko for $35 and pay $40 in shipping than to buy the same gecko for $25 and pay $50 shipping. I agree with it being a psychological thing. The gecko is tangible and will be with them for a long time, the shipping charges are a one time thing and intangible so they don't want to put much into it.
I do agree than customers need to begin to realize the truth to shipping costs and the fact that they have indeed increased a little every year for the last 4-5 years. If you're selling to another breeder there's rarely a question, they already know the situation, but it's the pet keepers that don't understand the actual costs of overnight shipping.

As for the high end vs. low end, I handle that differently. I am a snake breeder so I'll use that as an example rather than geckos.
I rarely offer any snake for sale over the internet with a selling price of less than $50. The common corn morphs, cal kings, etc. They are all wholesaled locally to a distributor who supplies pet shops.
I have found it to be quite difficult to sell a snake when the shipping charge is twice what the snake itself costs. People have much less problem with paying $40 shipping for a $200 snake than they do paying $40 shipping for a $25 snake.
When I do offer such snakes for sale where shipping is involved it's in lots of 10 or 20 so the shipping charge is spread out and more easily justified.
If I were breeding normal leopard geckos it would be the same. I'd either wholesale then locally, or would offer them for shipping 20 at a time.

 

[Jeremy Letkey]

I will be raising the price of my shipping this year to $45. In the same sense I will also be raising the price of some of my animals also. Hopefully I will be able to break even on the shipping costs. It is alot harder to justify the same shipping cost of a low priced gecko. I agree with everyone else. There is a psychological difference that allows most people to pay the shipping cost without complaining as long as the cost of the gecko or geckos is more than the shipping.

Here is a link to last years discussion of a similiar topic.
http://www.faunaclassifieds.com/forums/showthread.php?t=39551&page=1&pp=5