[Towertalk] Service Charges are NOT Price Gouging

[Jim White]

I really am disappointed in this group....and am sorry for this bandwidth
but there is a lot of MISinformation being spread here.

Seems few have been involved in retail or even wholesale...must be we have a
bunch of intellectual-property types here!

Small order service charges exist because if they did not the company you
are buying from could not sell it to you at a price which would not make you
scream rape.

This same group probably has no problem paying for its gasoline at the pump
and probably would scream if they realized what a small percentage of that
cost the actual fuel really is - and what a HUGE percentage is taxation of
one form or other.

I work in the building materials/hardware arena...the first Mom and Pop
store I ever worked for would not be able to survive in today's industry
because of what is referred to in the industry as "big boxes" - AKA the Home
Centers...

The huge Home Centers rather than being traditional customers of the
suppliers dangle their business, which is sizable, in front of the suppliers
and say if you want it here is what you will do.  This has resulted in the
corner hardware store nearly going extinct and ones selection of products
being constrained to the top 20 sellers of any manufacturer...

The identical thing has happened in the Ham Radio arena - a local ham store
is a thing of the past and all of us are buying through National chains with
multiple locations across the country.

To say that you should eat the costs associated with selling a small ticket
item is to commit business suicide.  Some vendors do not have the stones to
tell you up front that a little order will be subject to a service star, and
those that do usually understand the principal and have ABSOLUTELY NO
PROBLEM LOSING YOUR BUSINESS WHEN YOU SAY I WON'T PAY IT.

Businesses exist and the free market flourishes when the business makes
money - this is Capitalism...if you think a business exists so you can have
an item pinch yourself and wake up.

A happy meeting of supply and demand is found where the price is acceptable
to the buyer and the seller...if you will "the invisible hand" has set the
price.

If I were the vendor and if you wanted something for less than I wanted to
sell it for, I would say  "sorry, I cannot help you" at which point you
would try somewhere else.... if I was indeed somehow gouging you on price
then you would buy your item elsewhere - most of the time though I think
that you will find prices to be pretty close....and I mean bottom line total
cost.

I am sorry for this bandwidth but I would have thought the majority of hams
on this reflector would be more knowledgeable of basic business
practice...of course with the dot com mentality and intellectual property
folks placing a price tag on something can be all over the board...it ain't
your father's turnbuckle!

73,

Jim, K4OJ

2 days until the Florida QSO Party!
check out the site at http://www.qsl.net/fqp


----- Original Message -----
From: "Barry " <w2up@mindspring.com>
To: <K7LXC@aol.com>; <towertalk@contesting.com>
Sent: Thursday, April 25, 2002 3:40 PM
Subject: Re: [Towertalk] Buying nuts and bolts - Rationalized gouging


>
>
> On 25 Apr 2002 K7LXC@aol.com wrote:
>
> <snip>
>
> >     The ham radio market is comprised primarily of people who are
genetically
> > predisposed to NOT spending ANY money. That's why you see them bitch
about
> > spending more than 57 cents for a 57 cent item when mail ordered. You
and I
> > both know that a typical ham will spend a couple of gallons of gas
driving an
> > hour or two to save 5 cents a foot on RG-8. (I apologize to those of you
who
> > are really great customers and who realize that you get what you pay for
but
> > you all know what I mean.)
> >
> <snip again>
>
> Steve,
> Since you refer to my 57 cents, I feel obligated to respond.
> The company made (or should make) their profit on the item sold. The
> part in question was a "screw kit" consisting of 6 oddball (in the US)
> metric screws for a Kenwood VHF radio. They are probably worth about
> 3 cents. I was charged $6.00.  Sufficient markup?
> Next, $6.50 postage and handling. Postage was 57 cents. The box was
> about 2x3 inches, probably cost 15 cents. When I asked the cost, I was
> told $6.00 + shipping. I asked how it would be shipped. Answer - first
> class mail. Not first class mail marked up 1000 percent.
>
> If they charged me $10 for the screws and $2.00 for shipping/handling, I
> probably wouldn't be complaining. Yes, it is a ripoff. There are no real
> costs for handling.  "Handling" was probably invented by an Enron
> executive. The employee (or owner) is already there, and if he's not
> putting my little plastic bag of 6 screws in a box, he's doing something
> else - maybe productive, maybe watching Jerry Springer.
>
> In most businesses, repeat business is the key to success.  This is
> cultivated by customer satisfaction. I was not satisfied. I will never
order
> parts from this company again. Since Kenwood does not sell their own
> parts, but makes us jump through hoops like this, I will certainly think
> twice before purchasing another Kenwood radio. Just think, a potential
> loss of a several hundred to several thousand dollar future sale over a
> few bucks in shipping some parts...
>
> Steve, despite your opinions on this, plentry of others seem to disagree
> with you. Remember, customer service and perception is what counts...
> 73,
> Barry--
> Barry Kutner, W2UP              Internet: w2up@mindspring.com
> Newtown, PA                     Frankford Radio Club
>
>
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