handling charges

Re: [spiers] handling charges

We want to charge handling fees. If we state F.O.B. San Francisco, can that
include handling too or is it suppose to just be shipping charges? If it
can include handling charges, are we supposed to give the customers an
amount or can we just add it on to the final invoice? Some of our
competitors charge 8-15% of the total order price and some use the F.O.B.
method.

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FOB SF means your customer in Atlanta pays the freight from San Francisco to
Atlanta. A handling fee is added on after the freight charges.

You say some of your competitors charge a handling fee. This is a place to be
careful. Handling fees are offensive, a surprise charge, something that will
likely offend everyone and few won't pay anyway.

What a handling fee says to the customer, especially one in the 8-15% range, is
"I fooled you at the trade show, these are my REAL prices." Now perhaps you
make the handling fee clear at the time of sale; if so, why complicate things?
Buyers want to know what the price is, any delays are annoying.

I am glad you are looking at what your competitors do. We copy their terms and
conditions so that our customers fiind no reason "not to buy." Buyers throw out
test order like confetti, but give them 1/2 reason not to buy, and they'll move
on.

I'd get a much wider sample of competitors. I would emulate the simpler,
more straightforward dealers. I'd ask myself "how come i want to charge a
service charge." Why not just make your prices what they need to be?

John

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