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December 11, 2015 at 4:08 am #1191863Up::0Helen27, post: 225488, member: 28729 wrote:Thanks for this info, I did think they couldn’t be delivered to PO boxes and after seeing all the other places also not deliver to PO boxes that had confirmed it in my mind. If I am mistaken i will definitely remove my exclusion to PO boxes.
Some of Australia Posts partners will also allow delivery to PO boxes (well they did previously), so even if you do later go with a courier company check out each individual companies policies, it could give you an advantage over a competitor if they don’t.
Realistically even if you do at some time go to a courier company that cant deliver to PO boxes I would consider having Australia Post (or partner) as a backup for any orders to a PO box, in my opinion why cut out any potential clients just because they use a PO box.
December 12, 2015 at 7:01 am #1191864Up::0Helen27, post: 225458, member: 28729 wrote:I have limited to $40 because underneath that, depending on where I am shipping to I could end up actually loosing money off the sale due to the cost of shipping. I have opted for a flat rate shipping option as I really think that is the best option for customers, but due to the bulky nature of my products, shipping will almost always be more than the $9.90 flat rate. With my profit from the sale, decreased by shipping, gst and over heads (although they are fairly low), on a sale under $40 I could end up actually paying for sending the products instead of making money.
!Helen, I understood your reasoning for this answer when you gave it, but was uncomfortable with it but couldn’t put my finger on it. Just noticed that Mr Luke made a very similar comment on another thread, it made me come back to thinking is your reason really legitimate.
Maybe I am wrong, and I’m used to that so bare with me.
But when I look at your products, unless your clients happen to pick some of the bigger items and live in the Northern Territory, the worst case scenario, is that they will fall into Australia Post range of around $12 postage, NT and WA would go higher true. But with some you will fall in the under 500g so a flat rate of $7.45
So where I am going, I guess I look at it that some you will pick up a dollar or 2, others you will drop a dollar or 2, and if bad luck runs your way and you hit NT, a couple more dollars. PS. I rarely get many sales to NT or WA, think of the size of the markets compared to Vic, NSW and QLD which will all fall in the cheaper ranges.
So I guess where I am heading is with the law of averages in general you should be picking up a dollar or 2 on your average sale, which should outweigh your loss on the others.
Just my thoughts and picking up on Mr Logistics comments, don’t scare a potential client away with a negative, and yes they are potentially testing you out on a small purchase to see your performance before investing there little darlings party in you.
December 12, 2015 at 7:57 am #1191865Up::0Helen27, post: 225458, member: 28729 wrote:I have limited to $40 because underneath that, depending on where I am shipping to I could end up actually loosing money off the sale due to the cost of shipping.[USER=28729]@Helen27[/USER] your #1 problem atm is that nobody knows you. You need to solve that problem first. If it were me I’d remove barriers like the $40 minimum initially because you really need those initial customers who can come back for more and who can tell their friends about you (even if you only break even on the sale, or lose a few bucks).
I’d consider running a launch special or free shipping initially for the same reason. Once more people know about you and you have a stream of customers you can focus on increasing your margins.
Dave
December 12, 2015 at 8:08 am #1191866Up::0FS Forum Support, post: 225537, member: 49676 wrote:[USER=28729]@Helen27[/USER] your #1 problem atm is that nobody knows you. You need to solve that problem first. If it were me I’d remove barriers like the $40 minimum initially because you really need those initial customers who can come back for more and who can tell their friends about you (even if you only break even on the sale, or lose a few bucks).I’d consider running a launch special or free shipping initially for the same reason. Once more people know about you and you have a stream of customers you can focus on increasing your margins.
Dave
Just adding to Dave’s input, it all comes down to CASH FLOW. If you are just breaking even (over all) on some sales it’s better to sell it than to have it sitting on the shelf waiting for ‘just the right person’ to buy it
Cash in the hand is worth more than a ‘potential’ sale.
Cheers
Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au P: 61 3 8324 0344 M: 61 412 244 888December 14, 2015 at 10:19 am #1191867Up::0bb1, post: 225532, member: 53375 wrote:Helen, I understood your reasoning for this answer when you gave it, but was uncomfortable with it but couldn’t put my finger on it. Just noticed that Mr Luke made a very similar comment on another thread, it made me come back to thinking is your reason really legitimate.Maybe I am wrong, and I’m used to that so bare with me.
But when I look at your products, unless your clients happen to pick some of the bigger items and live in the Northern Territory, the worst case scenario, is that they will fall into Australia Post range of around $12 postage, NT and WA would go higher true. But with some you will fall in the under 500g so a flat rate of $7.45
So where I am going, I guess I look at it that some you will pick up a dollar or 2, others you will drop a dollar or 2, and if bad luck runs your way and you hit NT, a couple more dollars. PS. I rarely get many sales to NT or WA, think of the size of the markets compared to Vic, NSW and QLD which will all fall in the cheaper ranges.
So I guess where I am heading is with the law of averages in general you should be picking up a dollar or 2 on your average sale, which should outweigh your loss on the others.
Just my thoughts and picking up on Mr Logistics comments, don’t scare a potential client away with a negative, and yes they are potentially testing you out on a small purchase to see your performance before investing there little darlings party in you.
Bert – I tend to over estimate to make sure I am not leaving myself short. Perhaps in this case I have done it too much, to my detriment. I have reassessed my $40 limit down to $20, as I think you have a point, I am kind of thinking worse case scenario where the shipping is the heaviest items to W.A., which is very unlikely to be the case.
Thanks again for the feedback.December 14, 2015 at 10:20 am #1191868Up::0FS Forum Support, post: 225537, member: 49676 wrote:[USER=28729]@Helen27[/USER] your #1 problem atm is that nobody knows you. You need to solve that problem first. If it were me I’d remove barriers like the $40 minimum initially because you really need those initial customers who can come back for more and who can tell their friends about you (even if you only break even on the sale, or lose a few bucks).I’d consider running a launch special or free shipping initially for the same reason. Once more people know about you and you have a stream of customers you can focus on increasing your margins.
Dave
Will be running free shipping promo within the next couple of weeksDecember 14, 2015 at 11:56 pm #1191869Up::0Helen27, post: 225622, member: 28729 wrote:I have reassessed my $40 limit down to $20, as I think you have a point,Think this is a positive move, although to be quite frank with you, imposing a minimum spend may scare people off – no matter what the minimum is – as its a perceived ‘demand’ or imposed barrier to buying. People do not like to be told what they can and can not due in a general sense, especially if they are parting with their money to you..
This is not a negative post, just letting you know that buyers (the people we love as business owners) do not like to be told what they can and cant do. It tends to get there back up, whether they realise this or not..
What may be wise, is to see if you can track abandoned carts – people that add things to carts, proceed to checkout and then drop them – as this is the only time you see the minimum – or if you can see the average abandoned cart values? this will also give you some insight.
Although i can understand your business logic in imposing minimums so it doesnt cost you money to fulfil orders, people do not care about what it costs you as a business. They just know that competitor X, Y or Z do not have minimums.
One positive, your business model is ‘fluid’ meaning you can alter your process as you go, as you learn and as you develop – just be quick to respond to anything you notice, hear or learn about though so you do not ‘discourage’ future clients or people that will revisit you several times before committing.
Cheers
Jason Ramage | Lucas Arthur Pty Ltd | E: hello@lucasarthur.net.au P: 61 3 8324 0344 M: 61 412 244 888 -
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