How much to charge shipping for a free CD

14 years ago

Originally Posted by troy23

I understand you can make a small profit off the shipping price of a free CD/DVD.

I was going to put this through Kunaki as it is the only CD delivery service I am familiar with right now.

I wondered what was a good price to cover shipping and make a little extra, without putting potential buyers off.

Maybe the best thing to do in this stage of the game with all the new regulation going on with FTC and Visa/Mastercard cracking down on certain merchant providers, I think it would
be best if you do everything in your power to NOT put potential buyers off.

Especially with something as trivial as charging a little "extra" for shipping on a free CD.

Cover your costs to produce and ship the CD on the front end, then make your profits
on the back end.

You will be glad you did this.

- Jason

Thanks

Signature

"Human thoughts have the tendency to transform themselves into their physical equivalent." Earl Nightingale

Super Affiliates Hang Out Here

{{ DiscussionBoard.errors[1700408].message }}

seasoned

14 years ago

Technically, it is illegal to charge "shipping" with the intent to make a profit, at least in the US. If that i your goal, say "shipping AND HANDLING". Of course, everyone realizes that shipping requires a third party, so you have to charge a LITTLE more, and some want to fix shipping, so you have to charge even MORE BUT, if you charge $50 to ship just a cd, someone complains, and you can't justify it, you COULD end up across the table from the FTC.

Handling DOES imply a small amount, but it is for OTHER processing, outside of shipping.

Steve

Thanks
1 reply

{{ DiscussionBoard.errors[1700433].message }}

JohnMcCabe 14 years ago

Here's a formula I dug up awhile back...

Start with your real cost of fulfillment, say $3.50 just for the sake of having some numbers to play with.

Add your advertising cost per lead, say another $2.00.

Add your "handling charge", say 10%-15% - in this example, you could round that up to another $1.00.

So your shipping and handling fee would be $3.50 + $2.00 + $1.00 = $6.50

Plug in your own numbers and see if they make sense...
- Thanks
{{ DiscussionBoard.errors[1700470].message }}

Scott Ames

14 years ago

For sure don't do what I see many eBay sellers doing. They offer something at a good price then charge a large fee for shipping.

I have seen listings with a Buy It Now price of $5 and a shipping fee of $35 . I'm surprised eBay lets people do that.

If people feel ripped off there goes your business. Just charge enough to get it to them and make money on the backend. That's what I would do.

Thanks
1 reply

Signature

Success consists of going from failure to failure without loss of enthusiasm. -Winston Churchill

{{ DiscussionBoard.errors[1700459].message }}

Loren Woirhaye

14 years ago

Originally Posted by Scott Ames

For sure don't do what I see many eBay sellers doing. They offer something at a good price then charge a large fee for shipping.

I have seen listings with a Buy It Now price of $5 and a shipping fee of $35 . I'm surprised eBay lets people do that.

Ebay has changed their policy. It now assigns maximum shipping
charges to media and common commodity items. I'm not sure how
it all works, but the maximum allowed is actually a little too low
to cover real shipping costs in some cases, as with books, which
vary considerably in weight.

The intent is to shift the real price into the "price" column and
suppress the shenanigans with inflated shipping charges.

I'm not sure how widespread this new policy is.

Thanks

Signature

HOT! $25,000,000/yr Copywriter's Secret Bookâ€”FREE! |
*Breakthrough Marketing Blog (+ goodies) *
CopyWriting Services

{{ DiscussionBoard.errors[1700578].message }}

Michael Oksa

14 years ago

I believe it looks incredibly suspicious when the S&H is more than the listed cost of the item. My guess is that I am not alone in this regard.

Here's a wild idea!

Instead of charging $5 (as an example) for S&H on a "free" CD, why not charge $5 for the CD and point out that shipping is free? You still make the same profit, but not at the sake of alienating distrustful prospects.

All the best,
Michael

Thanks
1 reply

Signature

"Ich bin en fuego!"

{{ DiscussionBoard.errors[1700541].message }}

dualdtmz

14 years ago

Originally Posted by Michael Oksa

I believe it looks incredibly suspicious when the S&H is more than the listed cost of the item. My guess is that I am not alone in this regard.

Here's a wild idea!

Instead of charging $5 (as an example) for S&H on a "free" CD, why not charge $5 for the CD and point out that shipping is free? You still make the same profit, but not at the sake of alienating distrustful prospects.

All the best,
Michael

Good idea! If you say "free cd" just pay shipping costs it makes it sound like the product is too cheap to sell. But if its $5 with free shipping then it shows more value. just my 2 cents, well 5 cents now due to inflation, ha

Thanks

{{ DiscussionBoard.errors[1701504].message }}

troy23

14 years ago

Have to say I did not plan on ripping anyone off by adding something huge.
Was thinking of maybe $1 on top of the Kunaki fee.

Sure I could charge $5 for the CD and say shipping is free, but was advised people like getting something for Free.

Thanks
1 reply

{{ DiscussionBoard.errors[1700683].message }}

Michael Oksa

14 years ago

Originally Posted by troy23

Have to say I did not plan on ripping anyone off by adding something huge.
Was thinking of maybe $1 on top of the Kunaki fee.

Sure I could charge $5 for the CD and say shipping is free, but was advised people like getting something for Free.

You mean like shipping???

~M~

Thanks
1 reply

Signature

"Ich bin en fuego!"

{{ DiscussionBoard.errors[1700693].message }}

Silas Hart

14 years ago

Free CD + $5.00 Shipping is more enticing than $5.00 CD and Free Shipping.

Thanks
1 reply

{{ DiscussionBoard.errors[1701145].message }}

Michael Oksa

14 years ago

Originally Posted by FaJeeb

Free CD + $5.00 Shipping is more enticing than $5.00 CD and Free Shipping.

Not to me it isn't. Not even close. I wouldn't buy the first offer, but would consider the second.

But...that doesn't mean either of us are correct. We don't know what niche it is, the target market, etc. Therefore, the logical answer is for troy23 to do a split test and see which works one gets better results.

All the best,
Michael

Thanks
2 replies

Signature

"Ich bin en fuego!"

{{ DiscussionBoard.errors[1701172].message }}

rosetrees

14 years ago

If you have to pay for it, it isn't free!

[ 1 ] Thanks
1 reply

{{ DiscussionBoard.errors[1701195].message }}

DogScout

14 years ago

Originally Posted by rosetrees

If you have to pay for it, it isn't free!

I am surprised that wasn't addressed in the new FTC guidelines (although maybe it is)

There are niches that depending on the state, you cannot use that word, even if both the item and the shipping is free. I'd certainly check with a state attorney before proceeding.

Thanks
1 reply

Signature

Otis's Blog (Own The Internet, Silly)Paint Shop Tubes - Free images - Free Graphics - Free Photos - 3D - Poser Tubes - Scrap Kits

{{ DiscussionBoard.errors[1701857].message }}

rosetrees

14 years ago

@DogScout - especially, as the OP clearly stated that he intended making a profit on the shipping and handling - ie charging the customer for the CD.

Edit : I just found this in the FTC "Guidlines Against Deceptive Pricing"

They should not offer an advance sale under circumstances where they do not in good faith expect to increase the price at a later date, or make a ``limited'' offer which, in fact, is not limited. In all of these situations, as well as in others too numerous to mention, advertisers should make certain that the bargain offer is genuine and truthful. Doing so will serve their own interest as well as that of the public

and this isn "FTC GUIDE CONCERNING USE OF THE WORD ``FREE''
AND SIMILAR REPRESENTATIONS"

Thus, a purchaser has a right to believe that the merchant will not directly and immediately recover, in whole or in part, the cost of the free merchandise or service by marking up the price of the article which must be purchased, by the substitution of inferior merchandise or service, or otherwise.

(I added the emboldening)

Thanks

{{ DiscussionBoard.errors[1704658].message }}

Silas Hart

14 years ago

Originally Posted by Michael Oksa

Not to me it isn't. Not even close. I wouldn't buy the first offer, but would consider the second.

But...that doesn't mean either of us are correct. We don't know what niche it is, the target market, etc. Therefore, the logical answer is for troy23 to do a split test and see which works one gets better results.

All the best,
Michael

In all respect, I've split tested both with informational products and physical products and Free Item + Shipping is the most chosen method.

What's happened is what always happens in instances where someone no longer becomes a consumer but more of a provider. We judge others methods by their tactics to consume a profit, as opposed to seeing things only through the mind of an everyday average consumer.

Like you, I wouldn't choose Free + Shipping either. Thats because we are both educated consumers or providers who see that the profit is found in shipping which may make us feel is unethical and unworthy of our purchase.

Thanks
2 replies

{{ DiscussionBoard.errors[1701240].message }}

Nu 14 years ago

Well, this might seem like a strange recommendation. However, maybe you should copy the Video Professor. Doesn't he give you a "free" CD and then charge $9.99 or thereabout for the shipping and handling?

It seems to work for him.
- Thanks
{{ DiscussionBoard.errors[1701270].message }}

Michael Oksa

14 years ago

Originally Posted by FaJeeb

In all respect, I've split tested both with informational products and physical products and Free Item + Shipping is the most chosen method.

What's happened is what always happens in instances where someone no longer becomes a consumer but more of a provider. We judge others methods by their tactics to consume a profit, as opposed to seeing things only through the mind of an everyday average consumer.

Like you, I wouldn't choose Free + Shipping either. Thats because we are both educated consumers or providers who see that the profit is found in shipping which may make us feel is unethical and unworthy of our purchase.

I think that's great you were able to test that. However, your results are just that, your results. If we all relied on other people's testing, then none of us would ever have to test again.

I'm not arguing with your results at all. It's just that different target audiences will yield different results.

For example, what if troy23's niche just so happens to be "educated consumers"? If you follow.

He has to do his own testing to know for sure.

All the best,
Michael

Thanks
1 reply

Signature

"Ich bin en fuego!"

{{ DiscussionBoard.errors[1701288].message }}

Silas Hart

14 years ago

Originally Posted by Michael Oksa

I think that's great you were able to test that. However, your results are just that, your results. If we all relied on other people's testing, then none of us would ever have to test again.

I'm not arguing with your results at all. It's just that different target audiences will yield different results.

For example, what if troy23's niche just so happens to be "educated consumers"? If you follow.

He has to do his own testing to know for sure.

All the best,
Michael

Very good point.

Thanks

{{ DiscussionBoard.errors[1701486].message }}

Lloyd Buchinski

14 years ago

Shipping and handling charges get to me. (btw I didn't adjust the first line in my sig for this thread).

One software company I have ordered from charges $65 to ship to Canada. Even with that it was still the cheapest last time I ordered something from them quite a few years ago. They substituted the item I ordered which got me grouchy and they agreed to take it back and send the right one now that it was in stock. In the process of doing all that I happened to notice that their actual shipping charges by the company that was doing the delivery were $6.

This time I emailed them, asked if they could send something by regular post and drop the shipping charges a bit. They replied that no, sorry, they couldn't do that. It was technically and humanly impossible. (or something like that) This time I found a company that did come out quite a bit cheaper when you added in s & h, and went with them.

But of course most customers aren't going to do the checking around.

Thanks

Signature

Do something spectacular; be fulfilled. Then you can be your own hero. Prem Rawat

The KimW WSO

{{ DiscussionBoard.errors[1701382].message }}

rajput441

14 years ago

I agree with Mr. Michael Oksa, for me $5 + free shipping is more attractive, but that is just me. However the best way to do do it is make a test. Good luck

Thanks

Signature

DESIGN|RANK|GROW

FUNNEL BOOST MEDIA
GOOGLE PARTNER

{{ DiscussionBoard.errors[1701799].message }}

How much to charge shipping for a free CD

Trending Topics

Google Ads, landing pages, and Clickbank links

Carry out better target audience research

Membership area with multiple income streams

YouTube gets shopping display tools and affiliate partnership updates

A Very Strange Internet Problem