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How to Make Ends Meet With a New Business: Delivery Expenses |
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Written by Wendy Wood
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Friday, 16 March 2007 |
As if the rising prices in gas weren’t enough to send you in a tizzy over delivery expenses, there are plenty of instances that arise, putting a dent into your budget. With careful planning, some of these annoyances can be easily handled. Below are a few suggestions for new and seasoned gift basket business owners to consider when they are looking to make ends meet in the gift basket delivery department.
Delivery Expenses
Let’s face it; delivery is an extra service that gift basket business owners offer to their customers. It means that instead of them delivering their gift, you are responsible for this duty. Perhaps, they want to surprise the receiver of the basket. Since gas prices are quite high, this means you will be spending more to deliver these beautiful surprises to the friends and loved ones of your customers. This cost can really add up! You will have to compensate for the extra bills.
Some business owners offer free delivery as a courtesy to their clientele. It wouldn’t hurt to add a small shipping and handling fee for each delivery that you make. If you already charge a fee for delivery, you should add an extra $.50 to compensate for the rise in gas prices. If you ship by UPS or another delivery service, an additional shipping and handling fee will also come in handy.
Avoid Price Increases During Major Holidays
When making an adjustment in prices, you shouldn’t wait for a big holiday season to arrive. There is nothing worse than finding out that your favorite shop has upped the prices on you, just as you’re about to pinch pennies for Christmas shopping or an extra-special Valentine’s Day gift. Not only will you leave a sour taste in customer’s mouth, but they may also decide to search for a business that offers lower prices. It is not uncommon for competitors to offer free shipping and handling during the holiday season.
Cater to Last Minute Shoppers (For a Fee)
Some customers can’t help but to wait until the last minute to complete their holiday shopping. You’ll be surprised at how many calls you receive for a gift basket needed yesterday. Offering same-day, local service for an additional fee will give customers the much-needed relief pitch when it comes to gift shopping.
Gift baskets are a popular choice for gift givers who have no clue what they want to give a person for their birthday or other popular occasion. This idea often doesn’t come until the last minute, which you should have already prepared yourself for. By adding this service and attaching an extra fee to it, you will be able to attract more last-minute shoppers, as well as pad your budget a bit. Just make sure you can handle the possible demands.
Present Incentives
If you feel bad about adding shipping and handling charges to your items, you may try another approach. Entice your customers to spend more and offer a reward for their efforts. Present them with a way to avoid shipping and handling charges, such as providing free delivery if they spend over a certain amount. Usually, this tactic works when using increments of $25, such as “spending over $50, $75, $100, or $200” to receive free shipping.
If you decide to increase the price of your gift baskets by 2-3% to compensate for delivery charges or up the price of shipping and handling, you can always soften the blow by presenting them with a coupon for their next purchase. It could be a free shipping and handling coupon or a specific percentage of their next basket. This way, instead of thinking of the price increase, they can focus on what to buy the next time around.
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