Thread: Postage

Maybe they should write "Post and Packaging". At todays rates it costs at least $5 labour to pack the box. Not counting the box and tape. I used to get some books in the US and they charge $25 bucks to pack the box fill out the paperwork and take it to the post office (for non-us orders).

It is fair to pay a packing charge but I doubt that an item that weighted less that 200g would require much packing.

Originally Posted by Cliff Rogers

It is fair to pay a packing charge but I doubt that an item that weighted less that 200g would require much packing.

It was probably already in a suitable box - throw it in a bag, remove plastic strip & press - cost for labour less than 10 cents. Postage to anywhere in Oz is $7.20 for a 500g satchel, and that now includes tracking. Used to be $6.60 without tracking, but that has been replaced just recently.

Was it a gouge that you purchased? Sounds like it was.

Originally Posted by gdf26562

Not happy Jan

I wouldn't be happy either. Bad publicity for them.

Post and Pack. They get you coming and going.
Very useful term to increase profits.

As some one who sold Paulownia I used to send some small bundles of timber by Aust Post. If I sold $40.00 of timber
I had to communicate with the customer about the order. (phone or email.)
I had to select the plank and cut it to length.
Wrap it into a parcel.
Make out an address sheet.
Take it to the Post Office.
I would then prepare and send an invoice to my customer because I then knew the
correct postage.
(In my case I then emailed the invoice and hoped I got paid. for the record I never had a bad debt. Timber people are good people even the young surfies who made their own surfboards.)
The profit on the sale of the timber would be $10.00 without a P & H charge. A lot of time and effort for so little return.

If I had an order for $200.00 of timber the procedure was much the same except that I used IPEC to deliver the parcel. In most cases the process was equally as long but my profit was much larger.

My feeling is that $18.00 is not unreasonable.

Whitewood

G'day Whitewood

I don't disagree for a moment that all these costs have to be covered.

I would make the point that the following would have to be covered for any purchase, including pick-up:

• I had to communicate with the customer about the order. (phone or email, or just talking in person)
• I had to select the plank and cut it to length.
• I would then prepare and send an invoice to my customer because I then knew the correct postage.
• In my case I then emailed the invoice and hoped I got paid, or printed the invoice for immediate payment for a pick up.

Therefore I would argue that these costs have to be covered by the price of the goods, otherwise in a pick-up situation you would not be compensated.


These points:

• Wrap it into a parcel.
• Make out an address sheet.
• Take it to the Post Office

are for non pick-ups, and therefore are warranted to be included as an extra handling charge. Furthermore, timber is a bit different to a part or tool that is picked from a shelf, and that probably already has some kind of packaging, and quite probably does not need any extra packaging.

Many of the companies selling tools/parts etc are probably taking multiple packages to the post office each day, and it's just a cost of doing business, and should be reflected in the price of the goods. Any P&P charge should reflect the actual effort that goes into the particular item.

Following on from your logic, it would be reasonable to charge the cost of the phone call, part of your internet costs etc etc, and clearly there would be a severe backlash to that from potential customers.

The $18 charge for this item is outrageous, given that the top whack price of the postage would be $7.20. In this case a handling charge of perhaps $1-2 dollars would be appropriate.

This is different, I know, but it's still in the same vein:
I recently had some small machinery freighted from Germany. The cost of getting it customs cleared over here was more than the actual cost of the air freight, and I was suitably outraged. I demanded to know how they could justify each and every one of the 8 itemised charges, and they had great difficulty. Three of the charges were taken off. Basically they were trying to charge me about $400 for what would amount to perhaps 30 minutes work. I ended up getting it for a "bargain" price of $270 odd, which in my opinion was still a gigantic rip-off.

Shouldn't the retailer be contacted first and be given a chance to explain?

On the contrary Groggy - the should be able to justify it on the website, before any charges are made.

Originally Posted by FenceFurniture

On the contrary Groggy - the should be able to justify it on the website, before any charges are made.

Actually, if the charge was made by credit card then this charge should of been explained and outlined before the goods were sent, not blindly invoiced.

What I was suggesting was, sometimes a phone call results in a simple "oh, that's a mistake, I'll re-credit your card now". Better to give them the chance to fix what MAY be an honest mistake before going public. I think everyone would like to be treated in that manner, I know I would.

If it is not a mistake then that is another matter.

Hey guys

Been away for a few days, and prior to leaving I rang the business that I dealt with, first off i must apologise to jet tools in Brisbane as it was not them that sent the item, although I did ring them first and I got put through to who I thought was the spare parts dept, but apparently it is another business, 'Gregory Machinery pty' in Brisbane.

I rang them and spoke to the spare parts man and asked him to explain the cost of $18 as I thought it was way too much, almost immediately the guy was dismissive towards me saying he had never had a complaint, I asked him to explain the break down but was given a 'thats the price' he then asked me when I last sent something, as you can imagine I got annoyed with his attitude, he continued to tell me that is the cost and that he just broke even with sending it. I asked him why he did not mention the cost of postage and packing prior to this, he thought he didn't have to.

He went on about customer service and I explained that I was also in customer service and had he tried to explain without the attitude I may have been placated, but alas, no.

So I will be taking the package back to the Post office and asking how much to send it back the same way, and allowing for the cost of a small packet I will be very surprised if it goes over $10. Shall keep you posted.

I also told the fellow that I would not be doing any business through him again, he wasn't to fussed by the sound of it. If I am right about the cost, a letter shall be written to the manager outlining my disgust, and will not be promoting his busness.

I am usually pretty easy going but this has got me riled....

Originally Posted by FenceFurniture

The $18 charge for this item is outrageous, given that the top whack price of the postage would be $7.20. In this case a handling charge of perhaps $1-2 dollars would be appropriate.

I can't let this pass

in other threads the costs of Australian retail have been discussed and I don't want to repeat the same here, but

If the employee tossing the boxed item into a 500g satchel is paid $16/hr (current minimum wage), the employee's cost to the business is typically a minimum of 2x that, i.e. $32/hr. That is if the business doesn't recover $32/hr from the work that employee does, it will go backwards. But at $16/hr it's not a given that the employee can write legibly and even reading can be iffy.
If it's a "girl (or boy) in accounts" who does the "picking and tossing" their cost (to the business) is more likely >$45/hr.
Your suggested $1 to $2 equates to around 4 minutes for the counter jockey whose hand writing is possibly illegible or around 2 minutes for the "person from accounts"

Most businesses charge in 6 minute increments, so P&H would likley have a minimum "cost" of around $5-10 on top of the postage.

It strikes me that the actual postage cost is pretty obvious and no-one minds paying for that, but it is the cost of the handling that raises most objections. There are two ways you can handle that, either charge for the handling directly on an item by item basis and end up with a big slug for the buyer, or you can look at the cost overall to your business and incorporate that into your pricing structure, thereby spreading the burden into small pieces for all the customers to cover. I wonder which approach we would feel better with?