No sorry, defend all you want but I won't deal with anyone who wants me to pay extra to ship out faster. Sorry, I'm done with this one too.
Done. Let's think about this a bit.
You call in an order, or even place it online.
Someone takes your order, processes it, takes your payment
Someone gets your order at the warehouse and searches down the parts you want, maybe even from a couple of buildings, and groups them for shipping
Someone packages your order, wrapping the parts for safe delivery and getting it ready with other packages for shipping.
Someone ships your order-maybe taking it to the post office(mom, or pop?) or filling forms, printing labels, coordinating with a pickup.
So, what's that take? Let's say 30 minutes because you're a priority customer. And let's say they've got a great staff who will work for peanuts-maybe $10 an hour? so that's $5. But, if you know anything about business at all, you'll know that's not what an employee costs-there's Social Security, Workman's Comp, Retirement, health care, insurance,etc. Easily double what you're paying that employee, so now you're at $10.
Let's say that the USPS gives you those nice Priority Mail boxes for free and even brings them to your warehouse for you. There's still tape, and labels, and printer ink and bubble wrap-Maybe $1 a package? And even if you're grouping all those little parts into one box, that's a flat rate $5.95.
So, now we've got $16.95 to send you your package. What's they'ree shipping charge,did you say??
Now the kicker-to stay in a parts business, you've got to move inventory. The longer it sits on the shelf, the more it costs you. If you carry it over from one fiscal year to the next, you pay tax on it. Lots of businesses aim for 90 days max to turn inventory over, a really good company would like to have 30 days, maybe less. Stuff on your shelf is money on your shelf and not in your pocket. That's why so many businesses have gone to "just in time" ordering" but a parts business
can't do that. So you have to make up that loss with fees someplace-charge more for shipping, charge more for parts, charge something for handling. "Free shipping over $99"?-bet for damn sure those costs are built into the prices for parts.
Bottom line, the smaller guys-and the guys we're talking about are really good, don't have economies of scale , may be more efficient, but are running way tighter margins. Take advantage of them while you can because, sadly sadly sadly it's not a good business model. Service is what they're banking on but it's a very tilted table they're working from and the odds of future longevity are poor.
