Thursday, July 22, 2004

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.

***

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


out of the loop for a while

Re: [spiers] Re: out of the loop for a while

The reason I am suggesting a retail price is because I plan on selling
it retail, as well as wholesale, on a its own web site, and ebay.

Ben

Yikes, this presents problems. Retail, website and ebay all require you have
the product before you get orders, a unecessary risk. To state a suggested
retail price might invite a buyer to ask why you are suggesting a retail price,
and if you answer honestly, they will be inclined to eschew your product, since
it will be available elsewhere, or more to the point, everywhere, like something
old. Since no one is obliged to maintain your SRP, where is the upside in
mentioning it?

All three venues require time that prevents you from attending to where you can
make money; design and markets.

Why not strictly wholesale and sell TO retail, websites and ebay sellers. Treat
them all as custoemrs and you focus on where you can make money.

I worry that you may take risks thinking 'with total coverage, i am sure to
sell.' The only assurance of a sale is orders already in hand, before you buy
the goods.

John


out of the loop for a while

Re: out of the loop for a while

--- In spiers@yahoogroups.com, wileyccc@a... wrote:


> ***Well, forget about srp, since that is retailers problem... you
need only
> worry that you get your full markup,,and turn a profit...so find out
teh
> standard markup in your industry, and concentrate on that...

The reason I am suggesting a retail price is because I plan on selling
it retail, as well as wholesale, on a its own web site, and ebay.

Ben


Wednesday, July 21, 2004

handling charges

Hi John,

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.

Thanks for your help,
Gary


out of the loop for a while

Re: [spiers] out of the loop for a while


In a message dated 7/21/04 6:03:24 AM, ben4sin@yahoo.com writes:

<< I am suggesting retail
be at $24.95 because I think people would pay that
amount comfortably.

***You cannot know that until you see reorders for the product..so you are
guessing..and that can be dicey...***

My cost per item is just under $10
for initial run, then a little less for future runs.
My question, if my srp is $24.95, what should my
wholesale price be?


***Well it all depends on what industry... in Robert morse and assoc guide to
key biz ratios, you can find the standard markup % for your industry..and you
should adopt that... cuz your overhead will be typical eventually, so to be
competitive rationally you'll need the same markups... for example, if your
$10 item was a gift item it would likley have to wholesale for $25 and retail
for $50.***

Is it normal to go by percentage
of my cost? or percentage of amount between cost and
srp?>>

***Well, forget about srp, since that is retailers problem... you need only
worry that you get your full markup,,and turn a profit...so find out teh
standard markup in your industry, and concentrate on that...


out of the loop for a while

Hey John, Been out of the loop for a while doing
personal "stuff". I have a product that I need advice
on what to charge wholesalers. I am suggesting retail
be at $24.95 because I think people would pay that
amount comfortably. My cost per item is just under $10
for initial run, then a little less for future runs.
My question, if my srp is $24.95, what should my
wholesale price be? Is it normal to go by percentage
of my cost? or percentage of amount between cost and
srp?
Thank you in advance to anybody.


Tuesday, July 20, 2004

It's about time...

Folks,

How come this took so long?

http://www.bookmachine.com/machine.html

John