Anyone subsidize freight?

www-labels4less-com
Community Member
I was wondering if anyone else builds in extra room in the starting bid and subsidizes the freight to be more competitive with U.S. sellers? 90% of my orders are shipped small packet air and cost $9.90cdn. I have only been charging $6.00 U.S.

Anyone else?
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Anyone subsidize freight?

llee2
Community Member
You might want to consider Expedited Parcel for your items. If they fit in small packet air (ie. less than 1kg) you can ship for a bit less with Expedited (even moreso with the Venture Card). As well, Expedited Parcel includes $100 insurance in the price which buyers may be more willing to pay for on top of your regular S&H.
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Anyone subsidize freight?

www-labels4less-com
Community Member
Comes down to delivery time. Most of my competition delivers by priority mail 3 or 4 day delivery so I send all of mine by small packet air. Expedited would take too long. When I have orders over 1kg I don't do the "combined shipping" thing. I charge full price but tell them I'm "upgrading" the shipping and then send it Xpresspost.
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Anyone subsidize freight?

llee2
Community Member
I used to undercharge my S&H for certain items to keep it in line with US sellers. At the time though, my margins were a lot better on those particular items. Guess it depends on what kind of margin you're making with the item and whether or not you can sacrifice a dollar or 2. BTW, that $9.90 is going up to $11.40 come January 12. Apparently though, it's supposed to include $100 insurance (and hopefully this new upgraded tracking Canada Post has been advertising). Isn't USPS due for another price increase soon?
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Anyone subsidize freight?

treasure-pot
Community Member
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


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Anyone subsidize freight?

deltone
Community Member
I have found something rather interesting lately. I sell a lot of exercise dvd's. I've sold hundreds, and hundreds of the things, and set the shipping as $2 (US) which was a good $2 or more less than most (if not all) of the other sellers of these same things. I didn't find that mine were selling for more than any of the other sellers, and in many cases even sold for less. Last week I decided to try something.......I increased my shipping cost to the same as others..........$4 which is double. Interesting thing is my dvd's have actually sold for more this week, than they had been for several months. GO FIGURE!!! Makes zero sense, but it's true. I'll never figure people out.
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Anyone subsidize freight?

your-chic-shopper
Community Member
treasure-pot

are you saing thier will be tracking on small parcels soon?
Todd
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Anyone subsidize freight?

treasure-pot
Community Member
I don't see that in my post Todd.

What part of my posting gave you that impression? It would be great if it ever happened but I am not privy to any CP plans to start offering DC on small packets.

Bill


Bill


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Anyone subsidize freight?

your-chic-shopper
Community Member
sorry my mistake
Todd
Message 9 of 11
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Anyone subsidize freight?

gloriaguides
Community Member
Not yet, but soon!! I raised my postages 50 cents to $1 this fall to compensate for the exchange rate. I also have a 50 cent "fee covering" built into my s/h (80% of my buyers use Paypal, which I do like in many respects). Everyday i see the loonie rise I cringe though, since that was all profit that I do not get anymore. I'm not starving, mind you, but it was easier to make money last year!! Only good news is my Florida vacation will be cheaper this year than it would have been last year! I expect I'll be raising my postages when the new ones kick in, but since I use Expedited and small packages mostly, it won't be a huge increase. Weren't they whining about new US rates a few months back? Glori
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Anyone subsidize freight?

treasure-pot
Community Member
OK Lucy, esplain dis one to me.

Shipped identical items today. Both are 241 grams.

To Hawaii - $2.80

To Spruce Grove, AB - $7.85 (with my Venture 1 discount included). Yes I know I get insurance and DC... but is that worth a difference of $5.05???

So is CP raising the USA small packet rates because they are too low or because the Canadian postal rates are too high (and they don't want to lower them)?


Bill


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