[Towertalk] Buying nuts and bolts - Rationalized gouging

Jim Thompson - W3LAP w3lap@america.net
Wed, 24 Apr 2002 23:03:40 -0700


Robert
I can see you would never make it in the business world. Giving away your net.
Check this site out and you will learn a little about charging for everything.
http://www.compasssystem.com/
73 de Jim w3lap

Robert Shohet wrote:

> Whatever happened to the concept that you build your "costs" into the price?
>
> Do Doctors bill for postage, handling, etc?  NO!
>
> Do Life Insurance companies bill for telephone calls, medical tests, medical
> underwriting, postage, etc?  NO!
>
> Do consultants bill a "handling" cost?  NO!
>
> Do supermarkets bill a "handling" charge for their food?  NO!
>
> Billing for actual shipping costs is one thing, but billing for "handling"
> is pure crap!  EVERY business and business operator has time costs and other
> fixed costs - that is part of being in business.  If you can't build those
> costs into your price per item, then the "market" is telling you something -
> namely that there is not enough demand for your product to justify the
> price!   Either EAT THE COST or get out of the business!  Don't make excuses
> to rationalize an additional charge!
>
> Years ago, EVERYONE built these costs (except for shipping) into their price
> , and generally the service was much better.  This handling nonsense has
> just become another profit center and another way to gouge.
>
> If you can't make money selling $0.25 parts for $6.00, then get out of the
> business. Charging an extra $6.25 for handling is pure robbery!
>
> > I implement ERP systems, and I can tell you that Steve is on the money.
> > There's the order taking, order processing, pick list generation, picking,
> > packing, loading, shipping, documents, etc.  NONE of it IS FREE.
>
> Every business and professional consultant has to deal with the same issues
> and many others.  That is part of being a businessman.  No one is holding a
> gun to anyone's head to hawk their wares or services.  That is a matter of
> choice.
>
> That is why the S & H for a small order is a larger percentage than S & H
> for a
> > large order.  The amount paper work remains about the same for one bolt as
> > it does for 100 items.
>
> Paperwork is part of the job - without the paperwork there is no bolt to be
> sold.  This is not justification for "handling".  This is just another lame
> excuse to pad the order total.
>
> Bob KQ2M
>
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--
Jim Thompson - w3lap