Dilemma with Pricing!

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vitalframer
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Dilemma with Pricing!

Post by vitalframer »

As a neewby, I am pleased to say that I am now starting to get some orders although it is slow (expected). I am working from home so space for a large amount of stock of moulding is a non-starter. So my approach is as orders come in I will order packs (2 lengths) from Arqadia and I can then fulfil the order and have some spare stock of that profile. Where all this comes unstuck is that orders under £95 attract delivery charges (min £10).

How are other small outfits managing this? I could wait for a few weeks to build up an order that gets me free delivery but that means the customer has to wait (not ideal). Do I therefore try to factor in the cost of delivery into my pricing?

Any advice would be much appreciated.

Thanks
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huntvambo
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Re: Dilemma with Pricing!

Post by huntvambo »

Unfortunately delivery charges are a fact of life for my business and I just factor them into the price charged to the customers, I only order what I need plus a scrap / wastage factor.

I quote a two week turnaround, but usually have the finished frame ready before that, I order on a weekly basis so the cost to each individual customer is almost negligible. Put the order in on a Tuesday, after the weekend rush so that it's delivered on a Thursday so I finish last weeks orders before the new weekend stuff comes in.

I'm fortunate in that I'm local to both Lion and Wessex so for the more common mouldings I'll collect along with mountboard etc. I know collection isn't cost effect when you take into account time, fuel, etc. but it means I do get out.

With the Christmas rush due anytime, hopefully I'll be making up some orders that are above the minimum free delivery.

You can always bolster an order that is close to the minimum with mountboard, backing, glass, sundries, etc.

I know some of you only display a few mouldings to limit the customer choice and your stock holding but even with the range I display (~300) customer still ask for something else!

Paul
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Bill Henry
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Re: Dilemma with Pricing!

Post by Bill Henry »

vitalframer wrote: Do I therefore try to factor in the cost of delivery into my pricing?

Any advice would be much appreciated.

Thanks
Yes, delivery charges are part of your “fixed overhead” (okay, not really, but they should be factored in).

An alternative is to have your moulding chopped. It is, of course, more expensive per unit length to have your distributor cut and ship it to you, but, on the positive side, you are not stuck with unused, unsold inventory that may languish for months or years gathering dust and taking up space.

We automatically add a standard chop delivery charge (~ $5.50) to our retail prices even if we are able to buy our moulding in length. All of our retail pricing is based on chop prices.
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Ricky
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Re: Dilemma with Pricing!

Post by Ricky »

Guess I must Be Spoilt.
My Local Supplier Has Set Delivery Days For Certain Areas
My Delivery Day Is a Wednesday & I only need a minimum order of £30.
For Free delivery :D
stcstc

Re: Dilemma with Pricing!

Post by stcstc »

i am very spoiled

my local supplier is out my way mon, wed, fri

and no min order, and free delivery
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Ricky
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Re: Dilemma with Pricing!

Post by Ricky »

stcstc wrote:i am very spoiled

my local supplier is out my way mon, wed, fri

and no min order, and free delivery
:mrgreen: :mrgreen: :mrgreen:
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