Ah, I'm just thinking too small. On Mon, Mar 3, 2008 at 10:46 PM, Dale Fraser <[EMAIL PROTECTED]> wrote:
> No, > > This is not the case, it's a business model change. > > Here is an example > > http://www.dealextreme.com/details.dx/sku.8667 > > I can purchase 100 dice for $2.20 including free world wide shipping. > There > are cheaper items on this site also all with free shipping. > > There is no shipping cost built into this price, (in fact the shipping > would > cost more than $2.20 to most businesses) and if you look at the items on > this site, they are very cheap. > > They just choose to make less margin and across the range of products the > shipping is covered by the margin. > > It's a simple business model. > > We had $1mill worth of income, $100k was freight. So really simple > > $1,000,000 Sales > -$100,000 Freight Costs > -$700,000 Cost of Goods > > = $200,000k profit > > Then they say, well we would still be profitable if we didn't charge > freight. Except we would sell a hell of a lot more. So lets 4 x the > numbers > > $3,600,000 Sales (No freight Income) > -$400,000 Freight Costs > -$2,800,000 Cost of Goods > > = $400k profit > > And thats why they do it, as no freight = less checkout dropout = more > sales > = bigger profit. > > How many times did you go online to buy something but didn't because of > the > freight. > > Regards > Dale Fraser > http://learncf.com > > > -----Original Message----- > From: Michael Dinowitz [mailto:[EMAIL PROTECTED] > Sent: Tuesday, 4 March 2008 2:10 PM > To: CF-Talk > Subject: Re: Calculating freight for shopping application > > More often than not when this is done it is because: > 1. the shipping is rolled into the price > 2. the shipping has been flattened out so people in one location are > paying > more (relatively) and people in other locations are paying less > 3. This is done when there is competition and you want to look like you > are > giving a bargain > 4. The free shipping tends to be the cheapest possible with more costly > upgrades > > Bottom line is that the 'free shipping' is not always as free as you may > think > > On Mon, Mar 3, 2008 at 9:40 PM, Dale Fraser <[EMAIL PROTECTED]> wrote: > > > In case you hadn't realised, charging for freight is dying. > > > > A lot of sites now offer site wide international free delivery. I know > > that > > might not be your choice as the developer, but you should pitch it. > > > > When shipping is free, people buy more and come back more, it works!. > > > > Regards > > Dale Fraser > > http://learncf.com > > > > -----Original Message----- > > From: Mike Little [mailto:[EMAIL PROTECTED] > > Sent: Tuesday, 4 March 2008 1:00 PM > > To: CF-Talk > > Subject: Re: Calculating freight for shopping application > > > > obviously bricks would not be shipped with glass :) > > > > what i am saying is that each product has its own shipping price defined > > at > > the admin stage - as opposed to working out freight based on weight of > > product eg. artwork would work on dimensions as opposed to weight? > > > > a matrix to solve the purchase of more than one item could definitely be > > included. > > > > eg. 1-5 items - $x, 6-10 items - $X > > > > the nature of the products on sale however would not really need this, > but > > there may be instances where a client purchases 2 designer t-shirts or > > something. > > > > if only i could see amazon's freight matrix !! > > > > > > > > > > > > ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Adobe® ColdFusion® 8 software 8 is the most important and dramatic release to date Get the Free Trial http://ad.doubleclick.net/clk;160198600;22374440;w Archive: http://www.houseoffusion.com/groups/CF-Talk/message.cfm/messageid:300379 Subscription: http://www.houseoffusion.com/groups/CF-Talk/subscribe.cfm Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=89.70.4
