on 04-06-2015 11:54 AM
We have had the arguments about free post vs actual post. Just wanting to hear from those who offer a flat post rate which is less than actual, that way you keep item price down but as your advertised post is always less than actual eg say $5 whether itr goes in a 500gm satchel or 3kg satchel. That way you dont have to estimate shipping cost at listing, nor get into squabbles over listed cost vs actual.?
Many of my items are bordline on satchel rate so it is easy to quote wrong one.
It also leaves scope for discounting on multiples.
on 06-06-2015 10:19 AM
@heihachi_73 wrote:
I use a flat $2.50 for all DVD-sized games. Some items are $1.40, others are $2.10. The buyer pays $1.10 for a bubble mailer when they pay $1.40 postage, otherwise they pay 40c if it was heavier than 125g. As of 1/6/2015, the Officeworks plastic bubble mailers are 85c in bulk, or $1.15 each.
I guess what I am considering is that every parcel a buyer receives is obviously being charged (in their eyes) less than actual postage costs, along with the perception of cheaper postal component than other sellers, other than sellewrs who offer the free posty option their resultant higher item pricing (or at least pecetion of)
eg Flat $5 across the board where every "stamp" price is obviously above this. Marketing reason=value perception, Practical reason=allows for more transparent discounting for combining etc
My items have no market prices so item prices wouldn't be adjusted to accomodate this, it relies on improving sales to cover it
06-06-2015 09:53 PM - edited 06-06-2015 09:56 PM
@lane-ends wrote:I guess what I am considering is that every parcel a buyer receives is obviously being charged (in their eyes) less than actual postage costs, along with the perception of cheaper postal component than other sellers, other than sellewrs who offer the free posty option their resultant higher item pricing (or at least pecetion of)
eg Flat $5 across the board where every "stamp" price is obviously above this. Marketing reason=value perception, Practical reason=allows for more transparent discounting for combining etc
I haven't done that as a seller, but I've bought from sellers who price postage that way - that makes it difficult for me to comment on it though, because as a seller I look at what they charge, and look at what I know the minimum costs to them would be, so don't get an impression of things the same way a casual buyer would.
I can say that sometimes I look at cheap postage and feel more reluctant to purchase, either because it's an item I'd like to be packaged really well and discounted postage can sometimes give the impression of corner-cutting. Other times I hesitate because the item price is also low (i.e. underpriced) and these days I'm not inclined to feel guilty about taking advantage of a newby who didn't realise how expensive selling on eBay / postage is (wouldn't apply to you, obviously), or contend with a "whoops, I made a mistake with the pricing" etc, but at the same time, if the item price is reasonable (that is, doesn't appear underpriced), I'd be less likely to get any of those impressions.
In saying that, it has long been a theory of mine that there is a maximum percentage of the total price that a separate postage charge can be before even exact P&H can seem over the top or make the purchase appear to not be good value, just impression-wise.
By which I mean no matter how you look at it, once you price an item you are giving it value - not everyone is going to agree with that value, but if you take something and value it (in buyer's eyes) at $50 with $10 post, it's going to be conveyed as a $50 item, not a $60 item, which in itself gives a certain type of impression (can work for or against you at times).
If the actual postage cost is $25 though, partly subsidised by item price, and you list it the other way (i.e. $35 + $25 P&H), suddenly it's a $35 item, and fewer people may be prepared to pay $25 P&H for a $35 item. (It's the idea that "I can get the item for $35, so maybe I can find it with lower or $0 postage).
None of that probably helps much, though - in the absence of input from sellers who do price postage that way, I'd probably experiment with it and see how it goes.
on 07-06-2015 08:43 AM
Perception is a complex issue when it comes to marketing. I know one of the things that grinds me about buying online is the appearance of paying $$ to AP rather than for an item.ie as you say paying $60 for a perceived $35 item.
Luckily I'm not thinking margins like that, it would be $5 for a prepaid satchel. Buyers would not know which size satchel it would be upfront. Only that all the other competitors are listed as typivcally $8+ or more expensive freepost items.
Add to that freepost for any additional items, and it could be appealing from a buyers persspective.
My items have no set market prices, its just what an individual is wilingl to pay. I list everything the same price and reduce until sold.