Shipping Cost Truths

As a web based retailer of wine coolers, beverage centers and other beverage cooling products, the single most frustrating part of our business is shipping. Adding another side to the equation, consumers are often reluctant to pay for shipping of these beverage appliances. I don't blame consumers for seeking the lowest possible price when buying one of these appliances, but they need to realize shipping these items is not cheap.

If one is looking for a wine refrigerator that will store 24+ plus bottles of wine or a beverage center that will store over hundred cans, you must realize these appliances are going to weigh in at 100 pounds plus. Weight is not the only factor related to shipping. UPS, FedEx or standard freight shipping is also based on distance from the warehouse pick-up spot to the home or business of the consumer. Obviously, an item warehoused in Los Angeles, for example, will cost more to ship to New York City than the same item warehoused in New Jersey.

Most shipping companies also have restrictions based on package sizing. UPS typically will add an additional charge of over $50.00 per package for shipments exceeding their predetermined size limits. This additional charge often results from "double-boxing" the wine cooler and beverage center appliances. These appliances often come with glass doors and adjustable legs making them particularly vulnerable to damage from the shippers without the added box protection.
UPS and FedEx home deliveries are really geared to handle smaller packages quickly and efficiently, but give them something that weighs over 100 pounds and that quick and efficient operation begins to deteriorate. Image a package delivery driver that comes to your neighborhood to deliver a heavy package to you and has to "man-handle" this heavy package to your door. Our neighborhood UPS driver doesn't even have a dolly to move it with. One of our customers reported that their driver struggled with their delivery and eventually dropped it on the ground. Our "double-boxing" requirement saved it from damage.

Any seller of wine and beverage refrigerators obviously has to purchase their products from a factory or wholesaler. They also must determine the best pricing structure for retailing the appliances considering base cost, overhead expenses and required profit margin. Shipping costs also become part of the marketing consideration. Consumers are going to look at the bottom line by adding up product cost, shipping cost and potential sales tax costs. The retailer that can market the "best bottom line" to the consumer will get the sale. Retailers will use several different strategies for determining market bottom line figures.

Consumers will rightfully continue to look at their bottom line total cost. However, I believe they need to be more aware of the shipping dilemmas related to appliance weights, distance and boxing protection. Before you buy take the time to call the retailer, some times better deals can be made than are presented on the web site. For example, if a buyer is from an area near our warehouses, they will have much reduced delivery prices that apply or they may even be able to pick-up the item themselves. Lastly, look for personal customer service where you can talk to a human-being and get the true facts about your bottom line.

Author: Ronald Senn, Vice-president, Ideal Wine Coolers