Most of my items ship either small packet surface or Expedited.
With the falling US$ I'm getting closer and closer to actually subsidizing the shipping but I'm not quite there yet. I always had a little reserve in my shipping account to help offset packaging, fees, etc., but I'm borderline right now. The rare occasion I lose a little but, for the most part, that only happens when I ship within Canada and those sales amount to less than 2% of my total sales.
My concern is for the rapidly approaching Xmas season when my volume goes up about 35%. If the Loonie continues to strengthen, not only does my margin shrink, but I will also see the cost of shipping begin to erode my margins.
So I'm faced with the dilemma - do I raise S/H charges now (I'm going to have to for the new postal rates in January) and risk driving away potential buyers, or do I try and weather the storm and hope the Loonie does a complete reversal (only likely to happen if it turns out that Paul Martin is really a secretive drag queen and that's why Chretien doesn't like him)?
Either way, it's going to be a challenge to end the year at the profit level I was hoping for.
Bill