Delivery costs explained on CSB

[Rob D]

Explanation of postage costs and the questions that crop up.

 

 

As chainsawbars has started to grow a few times now there has been questions regarding delivery costs. So I've taken the time to write an explanation which I hope gives some insights into why we charge what we charge.

 

 

Question 1 - So and so company can deliver a bar and chain for £2.99 inc vat - why can't you?

 

Answer 1 - There are lists of reasons why their costs may be lower - higher volume, better relationship with courier company, they have a franking machine, their Aunty Sandra owns a post office, their parcels tend to all come within a certain easily defined size, weight and shape, the cost is added to the goods,.... etc etc etc....

 

The parcels I send out vary massively in terms of length, shape and size. So I have got a set deal with FedEx - I can ship pretty much any size parcel for £7-00+vat Mainland UK and £15-45+vat Highlands and Zone 4 postcodes

 

BUT it does not matter whether the parcel is 500g or 25kg - the price is the same. This makes things simple for all concerned. Simple keeps things efficient and cost effective. It doesn't suit everyone at all times but it does suit most people at most times.

 

We lose money on 99% of parcels sent out after paying postage, packing and handling.

 

 

Question 2 - Ok then but if that's what the courier costs then why not use Royal Mail - they deliver to out of the way places in Scotland and their cost is the same as Mainland UK?

 

Answer 2 - Royal Mail have lost 3 parcels recently - these were on a signed for service - we had to re send all 3 parcels by courier... one did turn up 2 weeks after being sent and then we had to organise getting this one returned... (and refund the customer postage costs).

 

There is no tracking with Royal Mail on the smaller items - if they go missing you have to wait 6 weeks before you can claim compensation and when you do claim the money you get back is barely worth the time spent form filling and chasing up.

 

Also - people tend to think 'that cost £2.95 to send by Royal Mail' so why have I paid more?'

 

We have to pay someone to pack all parcels. They get paid on a commission basis and they get a minimum £3-00 per parcel. The price you pay is for postage and packing not just the actual cost of the postage.

 

Additionally the person who packs has a full time job and can't always make it to the post office so I have to get someone else to go - usually takes 20 to 30 mins from leaving the workshop to getting back - cost is £3-00 to £4-00.

 

 

So in summary - sending things outside of Fedex (which is my main courier) by Royal Mail has a lot of other costs and you can't track the parcel - two good reasons for not using them.

 

 

Question 3 - Why can't you just do free postage for orders over a certain amount - everyone else does? Surely you can afford to do that as well?

 

Answer 3 - We could do but this is a business and that cost would just have to go on the price of what we're selling. We subsidise the postage costs rather than zero rating them. At some point there is only ever one person that has to pay the costs and that is you the customer - that is the only place the income is coming from.

 

Also maybe in the end the costs will catch up with those other companies - we are looking at the long term game - what is the most sustainable and fair way of doing things for years to come.

 

 

Question 4 - Ok ok - I've heard all the above but come on - there are lots of other companies out there selling the same things you sell and they still do much better on the delivery costs.

 

Answer 4 - I'd disagree with the first part of that question - there are a lot of other companies out there selling bars and chains but none of them has the choice that chainsawbars has.

 

Oregon and Stihl have a very good range with an excellent distribution network. They are by no means perfect but when you sell their products you get an account, you can order a few bits and pieces online with fast delivery, stocking levels for most items are very good (although for some items - fortunately the minority - stocking levels can be abysmal )

 

 

We could just supply these brands and particularly with oregon punt them out online and ebay for a small margin, not keep much stock and have the same choice as everyone else does - but that was not what chainsawbars was started for. It was started to give the best information and the best choice on the net.

 

 

When you look to import new products there is no account terms - you pay upfront and may have to wait a long time to see the products and then even longer to sell them and get your money back...

 

Why has Sugihara not been seen in the UK before? The bars are excellent, prices not bad so why are they not in evidence?

 

Because to import them in terms of cash flow and stock tied up you have to stick your neck out a very long way.

 

This is the reason the bars are often associated with needing spacers - it's easier and cheaper to buy in a few hundred all the same length drilled with all necessary oiler holes and use spacers for different chainsaws. But we choose to get each individual bar for each saw in each length.

 

 

 

 

 

And that sort of brings things round to the final point - what sort of service are you after? Do you want the best choice, new products and slightly higher costs like postage....

 

 

 

....or the cheapest price postage included but limited range of products offered i.e limited to the existing manufacturers that are already well established?

 

 

 

 

 

It is not possible for us to offer both of the above. I hope the above helps explain the delivery costs. We are looking at something like Despatch.com and this could be an option in the future to reduce postage costs to out of the way places but at the moment we're not doing the volume for it to make much difference.

 

 

 

 

 

 

 

[mendiplogs]

Explanation of postage costs and the questions that crop up.

 

 

As chainsawbars has started to grow a few times now there has been questions regarding delivery costs. So I've taken the time to write an explanation which I hope gives some insights into why we charge what we charge.

 

 

Question 1 - So and so company can deliver a bar and chain for £2.99 inc vat - why can't you?

 

Answer 1 - There are lists of reasons why their costs may be lower - higher volume, better relationship with courier company, they have a franking machine, their Aunty Sandra owns a post office, their parcels tend to all come within a certain easily defined size, weight and shape, the cost is added to the goods,.... etc etc etc....

 

The parcels I send out vary massively in terms of length, shape and size. So I have got a set deal with FedEx - I can ship pretty much any size parcel for £7-00+vat Mainland UK and £15-45+vat Highlands and Zone 4 postcodes

 

BUT it does not matter whether the parcel is 500g or 25kg - the price is the same. This makes things simple for all concerned. Simple keeps things efficient and cost effective. It doesn't suit everyone at all times but it does suit most people at most times.

 

We lose money on 99% of parcels sent out after paying postage, packing and handling.

 

 

Question 2 - Ok then but if that's what the courier costs then why not use Royal Mail - they deliver to out of the way places in Scotland and their cost is the same as Mainland UK?

 

Answer 2 - Royal Mail have lost 3 parcels recently - these were on a signed for service - we had to re send all 3 parcels by courier... one did turn up 2 weeks after being sent and then we had to organise getting this one returned... (and refund the customer postage costs).

 

There is no tracking with Royal Mail on the smaller items - if they go missing you have to wait 6 weeks before you can claim compensation and when you do claim the money you get back is barely worth the time spent form filling and chasing up.

 

Also - people tend to think 'that cost £2.95 to send by Royal Mail' so why have I paid more?'

 

We have to pay someone to pack all parcels. They get paid on a commission basis and they get a minimum £3-00 per parcel. The price you pay is for postage and packing not just the actual cost of the postage.

 

Additionally the person who packs has a full time job and can't always make it to the post office so I have to get someone else to go - usually takes 20 to 30 mins from leaving the workshop to getting back - cost is £3-00 to £4-00.

 

 

So in summary - sending things outside of Fedex (which is my main courier) by Royal Mail has a lot of other costs and you can't track the parcel - two good reasons for not using them.

 

 

Question 3 - Why can't you just do free postage for orders over a certain amount - everyone else does? Surely you can afford to do that as well?

 

Answer 3 - We could do but this is a business and that cost would just have to go on the price of what we're selling. We subsidise the postage costs rather than zero rating them. At some point there is only ever one person that has to pay the costs and that is you the customer - that is the only place the income is coming from.

 

Also maybe in the end the costs will catch up with those other companies - we are looking at the long term game - what is the most sustainable and fair way of doing things for years to come.

 

 

Question 4 - Ok ok - I've heard all the above but come on - there are lots of other companies out there selling the same things you sell and they still do much better on the delivery costs.

 

Answer 4 - I'd disagree with the first part of that question - there are a lot of other companies out there selling bars and chains but none of them has the choice that chainsawbars has.

 

Oregon and Stihl have a very good range with an excellent distribution network. They are by no means perfect but when you sell their products you get an account, you can order a few bits and pieces online with fast delivery, stocking levels for most items are very good (although for some items - fortunately the minority - stocking levels can be abysmal )

 

 

We could just supply these brands and particularly with oregon punt them out online and ebay for a small margin, not keep much stock and have the same choice as everyone else does - but that was not what chainsawbars was started for. It was started to give the best information and the best choice on the net.

 

 

When you look to import new products there is no account terms - you pay upfront and may have to wait a long time to see the products and then even longer to sell them and get your money back...

 

Why has Sugihara not been seen in the UK before? The bars are excellent, prices not bad so why are they not in evidence?

 

Because to import them in terms of cash flow and stock tied up you have to stick your neck out a very long way.

 

This is the reason the bars are often associated with needing spacers - it's easier and cheaper to buy in a few hundred all the same length drilled with all necessary oiler holes and use spacers for different chainsaws. But we choose to get each individual bar for each saw in each length.

 

 

 

 

 

And that sort of brings things round to the final point - what sort of service are you after? Do you want the best choice, new products and slightly higher costs like postage....

 

 

 

....or the cheapest price postage included but limited range of products offered i.e limited to the existing manufacturers that are already well established?

 

 

 

 

 

It is not possible for us to offer both of the above. I hope the above helps explain the delivery costs. We are looking at something like Despatch.com and this could be an option in the future to reduce postage costs to out of the way places but at the moment we're not doing the volume for it to make much difference.

 

 

 

 

 

 

 

 

HI ROB keep the good work up mate i will have stuff you mate as you now i like the service i get off you i can not get head around some people it like that when they ring for there some out there all ways looking for cheap stuff and when order kit i look at the hole thing service and with rob you get good service and it good kit he sells thanks mate that wood jack is very thanks jon

[Goaty]

Well put Rob I realise and understand what you are saying about cash flow etc. Realistically its up to the customer to use good business sense and stock up appropriately just as you have to.

 

Why buy a bar or a chain every month and pay postage when you can stock up a few months worth and get each item at a lower postage cost in a bigger order. Its simple, you do a good service. You could be one of those aloof e-tailers that have minimum order values or quantity orders.

 

Well put I look forward to new products

[Rob D]

Thanks - I think it makes it easier as well if it's explained why things are charged as they are rather than just 'like it or lump it'

 

 

 

[gensetsteve]

We used to sell car parts on ebay to send 1kg is expensive, easier to send 10kg and you know it will arrive next day.

[wisecobandit]

Doing some work for fed-ex I have to say they are the leaders in the delivery/courier league. As Rpb says there pricing is not the cheapest but they don't run a sliding scale on the weight unlike the others.

Not knowing what service Rob uses but the A is all next day and the B is 3 day. None of this 5 day stuff.

And if you get frequent deliverys via fed-ex they do require a signature for everything. However if you ask the delivery driver for a form to sign you can overcome this and he can leave the parcel somewhere safe that you declare every time so you haven't got to worry about being in to sign or go to a depot somewhere to collect.

[Ian C]

Seems fair rob you cant please everyone.

[Rob D]

Yep I know! I use the FedEx A service so is always on a next day delivery.

 

 

I have found FedEx to be excellent esp from my depot where they really work hard to keep their customers.

 

 

It all works well but it is the smaller orders that people tend to gripe about - hopefully this thread helps show it from the retailers point of view.