Hi.
I am trying to figure out a way to make the best possible pricing structure on my site without making a loss on each sale. Initially I was going to make it a fixed rate of say R100 including insurance ... but if I sell two LG Fantasy screens for example, I will end up making a loss due to the courier fees and low mark up. So this is what I am proposing ... I want to know what you guys think:
(This is only for door to door courier, there will still be the option of SA Post which is quite reliable these days ... I've posted tons of parcels and never one mishap as long as you insure the stuff)
Weight - price
<=2kg - R 50
<=5kg - R 100
<=10kg - R 150
<=20kg - R 200
<=25kg - R 250
<=30kg - R 300 - Chances are this is a massive order and the cost saving will still work out higher than the courier fees paid.
>30kg - Manually determine price (This will mostly be to do with large printers)
All the above prices include insurance normally charged at 2% of the value.
I know these price aren't as low as some stores, but I'm trying my best without losing money ... those store have a high number of sales and courier a lot and so these prices will hopefully come down as my need for courier increases (i.e. the more customers requesting courier, the more I need to courier, and the cheaper my courier fees become)
I will also look at imposing a free delivery or something like R25 for people in Johannesburg and Pretoria as I will probably get myself or an employee to deliver.
I am trying to figure out a way to make the best possible pricing structure on my site without making a loss on each sale. Initially I was going to make it a fixed rate of say R100 including insurance ... but if I sell two LG Fantasy screens for example, I will end up making a loss due to the courier fees and low mark up. So this is what I am proposing ... I want to know what you guys think:
(This is only for door to door courier, there will still be the option of SA Post which is quite reliable these days ... I've posted tons of parcels and never one mishap as long as you insure the stuff)
Weight - price
<=2kg - R 50
<=5kg - R 100
<=10kg - R 150
<=20kg - R 200
<=25kg - R 250
<=30kg - R 300 - Chances are this is a massive order and the cost saving will still work out higher than the courier fees paid.
>30kg - Manually determine price (This will mostly be to do with large printers)
All the above prices include insurance normally charged at 2% of the value.
I know these price aren't as low as some stores, but I'm trying my best without losing money ... those store have a high number of sales and courier a lot and so these prices will hopefully come down as my need for courier increases (i.e. the more customers requesting courier, the more I need to courier, and the cheaper my courier fees become)
I will also look at imposing a free delivery or something like R25 for people in Johannesburg and Pretoria as I will probably get myself or an employee to deliver.
