Should I raise my prices in order to offer free shipping?

[don_chuwish]

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[dtruitt]

Double your prices on the low end, add 50% on the high end.

Your time to negotiate, purchase shipping, pack, drop off, follow up, and cover loss, is all valuable. Charge for shipping anyway below a threshold that makes sense. When you do a two head frag for $40, that $20 extra is going to cover all of the aggravation of shipping when you could have just as easily gotten $20 in trade.

On the larger frags, that extra $65 can cover your shipping and some time, and you'll probably make more on the base transaction than if you trade in.

Everyone wants a deal, and no one wants to pay for overhead time, so you need to bury it in the sale price.

 

[don_chuwish]

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[dtruitt]

Strong advice, thanks! Reminds me of a story I heard from a building contractor about bidding jobs. He was saying that if you aren't embarrassed by the bid amount then it is probably too low. ;-)
This first go around has certainly been an education and you're right about the time spent. Lots of messages, lots of effort keeping track of things and planning shipping materials. I just ordered cooler boxes because I ran out of what I could scrounge. That's $5-$10 per shipment right there, before heat packs, FedEx, and time spent.
Next time around I'll probably set a lower 'flat rate' on shipping and increase the coral prices. I had been thinking the larger colonies were worth MORE per head than the small ones, just because of the higher immediate visual impact. But the demand response I've seen didn't bear that out.

You mean a pattern like:
1-4 heads = $20/head
5+ heads = $15/head
Right? Then maybe do a flat rate shipping of $40 instead of $50.

The Arrive-Alive insurance that ShipYourAquatics offers only covers losses due to FedEx delays and has many requirements stipulated. Hardly seems worth the effort to offer.

The pattern you described works. Tbh, those prices still sound low.

The value is the opposite of what you expected. Going from one head to two or three is a huge difference. Going from 15 to 16 is barely visible.

Low flat rate ($20) with extra money built into sale price is probably the way to go. That way the shrewd negotiator types can haggle you down without totally beating you up on shipping.

 

[don_chuwish]

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[tautog83]

2 + 4 = 6
4 + 2 = 6 ... like you said you know the prices of shipping so just have a standard rate or know well if I'm moving $500 in product I can take the hit since I'm making a lot . We all want free shipping but if it cuts into the money you want to make then they should buy elsewhere . The big vendors get huge breaks on shipping and obviously the coral are a lot cheaper . Write it down and stick to it

 

[don_chuwish]

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[Bxr126]

At the end of the day its all supply and demand. I'm sure you've bought plenty of coral to get where you are at. Simply ask yourself, if you'd buy it at that price. I find people who undercut themselves are just not very patient and people who gouge buyers are simply not in touch with the market.

 

[don_chuwish]

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[don_chuwish]

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