Home Forums General General Postage Rates! Reply To: Postage Rates!

#145992
Leon Pengilley
Participant

Just to put another business perspective in to echo Vexilia, the price of packaging can’t always be factored in to the product pricing so it does need to be covered somewhere.  We charge £3 minimum and £6 maximum on UK orders, which is enough to cover almost everything we send out.  Anything under 2kg goes for somewhere around £3 through Royal Mail, anything over 2kg goes through a courier for around £6-£7 normally.

We do similar with international orders as well, with a £15 max on Europe and £25 max on Rest of the World.  Those tend to be where we lose money though as a 3kg package to Australia can easily be £40-£50 to ship these days, so we just absorb those costs when they come up.

As an extra point, packaging staff adds a significant labour cost which isn’t always accounted for.  Our packaging team will check/package/process 40-50 orders in a 5 hour shift, so that averages out at roughly £1 labour per order packaged.

 

Retail margins are not that great that everything can be lumped into the retail price and remain competitive. Direct retailer (read manufacturers) have much larger margins and therefore can afford “free packaging” offers for larger orders. This option is not available to stockists etc.

Not always the case, we have higher margins on a lot of our stocked items than we do on some of our own products!  The smaller scales have much lower margins and some of our products are as low as 20% margins.  We should charge more for them but the market wouldn’t support it and we’d lose sales to competitors with lower overheads.

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