Shipping

[chariot_badges]

As I'm sure ya'll are aware -- postage is going up next month by 7.8% across all shipping methods and zones.  

I am a firm believer in passing those kinds of costs on to the buyer and I did not do a raise because of the last increase (just a few months ago).  

So, I will be raising my minimum shipping and handling charge to my customers by $1 to $5.95 as of the first of the month.

What's your prediction?   Am I doomed to be 'fired' by my customers for that buck?

And, if I am ... should I care?   I mean, should I be willing to work for nothing?

Scary times.

[redlinear]

It's not WHY you raise prices that's the issue.
It's the difference between your prices and your competition that's the issue.

[caldreamer]

I don't think raise shipping by $1 will deter customers.   Or you could just raise the cost of the item (as you know...customer hate to pay shipping).

[bryo_3145]

The Postal Service, after trying for more than a decade, finally convinced Congress last year to pass reform legislation, in hopes of improving the agency's long-term financial health. 

After USPS made it through the worst of the COVID-19 pandemic--which brought the agency to the brink of running out of cash-- and released the long awaited 10-year plan detailing ways could cut cost and generate more revenue, lawmakers agreed on legislation that would save the agency save billions of dollars. 

The Postal Service Reform Act, signed into law by our leader April 2022, eliminated a 2006 mandate from Congress to pre-fund retiree health benefits, a requirement that, our leader said, "stretched the Postal Service's finances almost to the breaking point." 

Lawmakers expected the legislation would save USPS a total of $107 billion---with more than half of those savings going into effect immediately, by forgiving $57 billion in deferred payments to its retiree health benefits fund. 

[sextons-sweet-deals]

It looks to be small change, but that small change adds up especially when it seems to be happening once to twice a year. 

Reminds me of the utility companies. They ask for a higher rate in order to seek the less target rate they are actually seeking and our poly's join / give in. 

The game is obvious and a no brainer. 

[chariot_badges]

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@redlinear wrote:

It's not WHY you raise prices that's the issue.
It's the difference between your prices and your competition that's the issue.

---

I kinda agree with this ... kinda.

We all keep an eye on our competition.  

But, at some point, I have to think "If they are willing to work for nothing, and the only way I can compete is to also work for nothing ... should I compete?"

I have always been successful at competing on a different level than 100% price.

I have watched many of my 'competition' fall out because they just couldn't continue working at zero margins. 

And, when they eventually do go away ... I do well.

This may be one of those times. 

I think I will continue to price at fair profit margins, and if I starve it won't be my fault.

If things get THAT bad ... we got bigger problems anyway.

[chapeau-noir]

I think it's better to spread an increase - roll some into the price, raise shipping a little. Shipping is a pain point for many buyers so a smaller or no increase there IMHO is better.

Also, I love the little pup in the shopping cart!

[bashort]

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@bryo_3145 wrote:

The Postal Service, after trying for more than a decade, finally convinced Congress last year to pass reform legislation, in hopes of improving the agency's long-term financial health. 

After USPS made it through the worst of the COVID-19 pandemic--which brought the agency to the brink of running out of cash-- and released the long awaited 10-year plan detailing ways could cut cost and generate more revenue, lawmakers agreed on legislation that would save the agency save billions of dollars. 

The Postal Service Reform Act, signed into law by our leader April 2022, eliminated a 2006 mandate from Congress to pre-fund retiree health benefits, a requirement that, our leader said, "stretched the Postal Service's finances almost to the breaking point." 

Lawmakers expected the legislation would save USPS a total of $107 billion---with more than half of those savings going into effect immediately, by forgiving $57 billion in deferred payments to its retiree health benefits fund. 

---

Yes, switching from funded pensions to unfunded pensions has got to save a lot of money

[dolcetreasures]

There’s no way to keep raising prices on items that aren’t that desirable in the first place. All we can do is constantly deal with the diminishing returns. Customers have shown they are unwilling to pay. 

[postcardcountry]

"No price increases are being proposed for USPS Ground Advantage, as well as Priority Mail® and Priority Mail Express® services.:"

I got this from the USPS website.

OP where did you see a 7.8% increase across the board?

[toysaver]

I can't imagine the nightmare it will be to adjust shipping for those that don't have it automatically done by using calculated shipping.

[richard1rst]

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@chariot_badges wrote:

As I'm sure ya'll are aware -- postage is going up next month by 7.8% across all shipping methods and zones.  

I am a firm believer in passing those kinds of costs on to the buyer and I did not do a raise because of the last increase (just a few months ago).  

So, I will be raising my minimum shipping and handling charge to my customers by $1 to $5.95 as of the first of the month.

What's your prediction?   Am I doomed to be 'fired' by my customers for that buck?

And, if I am ... should I care?   I mean, should I be willing to work for nothing?

Scary times.

---

Well I looked a few of your items and they are fairly light (car emblems and logos). You have a shipping price of $4.95. So a 7.8% increase is going to be a whopping 38 cents on items that are selling in the $13 to $30 range. Methinks you are overthinking it.

[buyselljack2016]

I used to hate "business policies", but now they make it simple for me to make a "shipping adjustment" on many items at the same time. (sell mostly under a pound)

Likely 90% of my items can be "adjusted" in a matter of minutes.

I see no indication that it is necessary at this time as I do not ship as "letter mail", but perhaps I have missed some announcement.

 

[nobody*s_perfect]

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@postcardcountry wrote:

"No price increases are being proposed for USPS Ground Advantage, as well as Priority Mail® and Priority Mail Express® services.:"

I got this from the USPS website...

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Here's the link to the announcement quoted above:

https://faq.usps.com/s/article/2024-Postage-Price-Change

[chariot_badges]

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@chapeau-noir wrote:

I think it's better to spread an increase - roll some into the price, raise shipping a little. Shipping is a pain point for many buyers so a smaller or no increase there IMHO is better.

Also, I love the little pup in the shopping cart!

---

That's Tiny Bear.

A five lb Yorkie.  He was a Pit Yorkie.   Willing to fight ANYbody or anything.  More balls than brains.

He developed a very useful talent.  I am a very brittle diabetic.  He could tell when my sugar was going off the rails before I could, and he'd warn me.  He would get very agitated.  Once, he jumped up in my lap and LOOKED at me.  I mean, feet on my chest and ... locked eyes.  Wide eyed, shaking, almost frantic.  He was yelling "MOM, DO SOMETHING!!" 

He saved me a couple of times.

He died of old age about three months ago, he was 16 years old.

He had a great life, helped me with mine.  If there's a heaven for dogs - he is there.

I miss him every day.

I have a monitor in my arm that warns me now.  

I'd rather have Tiny Bear.