Shipping as a revenue source

Seth points out a problem that we see all the time with clients. Shipping costs. What to do about them.

It is very complex when you have to figure size, weight, distance, time and method... on the fly and instantly. Easy for the big guys like Fed-X - that is what they do. Much harder for the smaller guy. Our first solution had always been... free shipping or single shipping charge period.

Three examples come to mind:

1. Client sells very small units (1 oz, 1.5 oz) types of very, very expensive creams. What to charge for shipping? Our feeling is simple. Nothing. If someone is spending $125 for this small thing, pick up the $3 it takes to ship it.

2. We have a client on the PHOTOtool who was very indignant with me once when he found that it doesn't have a dynamic shipping fee tool. We allow 3 units based on total of the sale. His point was that he had just sold 24 30x60 prints and there was no way to recover the shipping. I asked him what he had charged for the prints and he asnwered $400 per. That's 24 times $400... and the shipping was $56. Really... "you just made nearly 10 grand and you are calling me to recoup fitty bucks?" He was quiet then laughed and admitted he hadn't even really thought about it that way. He comped the shipping to the client. Yeah, that's what I would have done.

3. One of our photographers was very upset that he wasn't able to have total control of the shipping. He complained that no one wanted to pay for a 4x6 - one 4x6 - and then pay a dollar for shipping. He was only charging $2 per print. I told him to experiment with this: All prints are 2 for one with a 3 print minimum for $12... and shipping is free. He tripled his sales almost overnight. Figuring that he was getting his prints at 12 cents a piece... that seemed about right to me as well.

Shipping says more about your companies relationship to customers than a sincere reflection of business charges. Of course if the client wants it shipped overseas or overnight simply add a premium and be done with it.

Seth's Blog: "Shipping and handling charges have always been deceitful. Storefront merchants rarely charge 'for the little hangtags' or add a 'mannikin surcharge'. When direct mail was new, sellers tried to persuade buyers that the prices were just as good as at the local store--and they segmented S&H as a way of comparing it to the hassle of driving over. When the shipping and handling for an order was $1 or 2, this wasn't such a big deal."