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[Taxi_Driver]

Ordered summat from ebay for £1.50 free delivery....

It arrived in a couple of days.....seller had sent it via RM 24Hr service/signed for....

Just out of interest Ive just been on RM site, entered the package size/weight

And the 1st class (which I assume is 24Hr service) signed for option costs £2.78   
Even if they had sent is 2nd class, no tracking.....it still would have cost them £1.51 

Don't think they'll be in business too long if they keep taking hits like this on the postage 

Oh and how much does a brand new jiffy bag cost 

[Phil L]

I've often wondered the same too - let's hope you receive what you ordered !

[Varche]

Bulk terms maybe.

[Taxi_Driver]

Bulk terms maybe.

I don't think RM gives discount unless you have a franking machine. I know my bro sends all his chrimbo cards out that have been shoved through his franking machine, as he says its cheaper than buying stamps.

But my parcel was taken to a P.O. as it has the 'signed for' sticker stuck on the jiffy bag

[Taxi_Driver]

I've often wondered the same too - let's hope you receive what you ordered !

Ummm... I did, that's why I know the size and weight of the package 

[Phil L]

Quite - I misread your post, sorry 

I doubt it's a marketing ploy to get repeat business.  Watch to see if they're in business in the next couple of years I suppose.

[Diamond Black Geezer]

Work at a place that sell bathrooms/supplies. I have asked just out of interest, 'have you ever actually sat down and worked out you profit margins?'

'Oh, yes of course. We've been in business 30 years'
[not quite what I asked] 'But have you?'
'Yes, well, we buy this shower in at 50% retail, and we sell it at 25% discount. So 25% profit on that.
'Ok - what's that, £55, retail is £100... that's 55% then, not 50%'
'well, yeah, ok, about 50%'
'And you're doing them at £99'
'yeah that's double.'
'No it isn't'
'Well, nearly double, same difference. And a free shower head. Can't have a shower without a head/handset'
'How much?'
'Ahh, that's the beauty, they only cost us a tenner'
'Right... Postage?'
'oh, free!'
'so we don't pay postage, we get the postage for free?'
'Noo, don't be daft, of course the customer gets free postage!'
'Ok, so what's shipping on that?'
'Standard courier on that, £29. More if going to Outer Hebrides/N Ireland'
'Do we charge more for that?'
'Yes'
'It's not set up on this item'
'Oh, well, it should be. Ok, that one it isn't, but it will be on others'
'How can you know that? What's price to N Ireland?'
'Oooh, about £35 Id say'
'Right, and then there's the wages of everyone, the lighting, insurance, company cars, vans, MoTs, staff training, rent, rates, the lot, which cost the business every second. Let's assume that costs a theoretical £1 per product... so £99, minus £55, minus £10, minus £35, minus that £1... you see that is -£2. A £2 loss on each shower.?'
'Ahh, well, it's not really is it?'
'Why?'
'We sell LOADS of them! So it's a profit really'

 



I'm just a Graphic Designer, and so I don't understand about business

[aaronjb]

I listed something on eBay last night; £5 inc. free delivery via Hermes (which is ~£2.80).

I got a "best offer" of £2.50... I declined.

[Diamond Black Geezer]

Yeah, can you tell me why you declined my offer? I thought it most generous! 

[aaronjb]

 

[Phil L]

Work at a place that sell bathrooms/supplies. I have asked just out of interest, 'have you ever actually sat down and worked out you profit margins?'

'Oh, yes of course. We've been in business 30 years'
[not quite what I asked] 'But have you?'
'Yes, well, we buy this shower in at 50% retail, and we sell it at 25% discount. So 25% profit on that.
'Ok - what's that, £55, retail is £100... that's 55% then, not 50%'
'well, yeah, ok, about 50%'
'And you're doing them at £99'
'yeah that's double.'
'No it isn't'
'Well, nearly double, same difference. And a free shower head. Can't have a shower without a head/handset'
'How much?'
'Ahh, that's the beauty, they only cost us a tenner'
'Right... Postage?'
'oh, free!'
'so we don't pay postage, we get the postage for free?'
'Noo, don't be daft, of course the customer gets free postage!'
'Ok, so what's shipping on that?'
'Standard courier on that, £29. More if going to Outer Hebrides/N Ireland'
'Do we charge more for that?'
'Yes'
'It's not set up on this item'
'Oh, well, it should be. Ok, that one it isn't, but it will be on others'
'How can you know that? What's price to N Ireland?'
'Oooh, about £35 Id say'
'Right, and then there's the wages of everyone, the lighting, insurance, company cars, vans, MoTs, staff training, rent, rates, the lot, which cost the business every second. Let's assume that costs a theoretical £1 per product... so £99, minus £55, minus £10, minus £35, minus that £1... you see that is -£2. A £2 loss on each shower.?'
'Ahh, well, it's not really is it?'
'Why?'
'We sell LOADS of them! So it's a profit really'

 



I'm just a Graphic Designer, and so I don't understand about business

You couldn't make it up (could you ?)

[Rods2]

Work at a place that sell bathrooms/supplies. I have asked just out of interest, 'have you ever actually sat down and worked out you profit margins?'

'Oh, yes of course. We've been in business 30 years'
[not quite what I asked] 'But have you?'
'Yes, well, we buy this shower in at 50% retail, and we sell it at 25% discount. So 25% profit on that.
'Ok - what's that, £55, retail is £100... that's 55% then, not 50%'
'well, yeah, ok, about 50%'
'And you're doing them at £99'
'yeah that's double.'
'No it isn't'
'Well, nearly double, same difference. And a free shower head. Can't have a shower without a head/handset'
'How much?'
'Ahh, that's the beauty, they only cost us a tenner'
'Right... Postage?'
'oh, free!'
'so we don't pay postage, we get the postage for free?'
'Noo, don't be daft, of course the customer gets free postage!'
'Ok, so what's shipping on that?'
'Standard courier on that, £29. More if going to Outer Hebrides/N Ireland'
'Do we charge more for that?'
'Yes'
'It's not set up on this item'
'Oh, well, it should be. Ok, that one it isn't, but it will be on others'
'How can you know that? What's price to N Ireland?'
'Oooh, about £35 Id say'
'Right, and then there's the wages of everyone, the lighting, insurance, company cars, vans, MoTs, staff training, rent, rates, the lot, which cost the business every second. Let's assume that costs a theoretical £1 per product... so £99, minus £55, minus £10, minus £35, minus that £1... you see that is -£2. A £2 loss on each shower.?'
'Ahh, well, it's not really is it?'
'Why?'
'We sell LOADS of them! So it's a profit really'

 



I'm just a Graphic Designer, and so I don't understand about business

Not the first business owner that doesn't know the difference between turnover and profits. Long term they won't be the last, by any means to go bust as a result.

I worked with somebody like this and it is a nightmare. As a result of their stupidity, their smaller division in the business, crashed the rest of it. It was a £15m retail business, with about 50 people made redundant as a result, so not insignificant.

Currently, a person I do a lot of work for, I've put through my 'turnover is ego, profit is reality' education program, where he was making losses trying to be the cheapest, to get the volumes and this is unbelievably stupid. Fortunately, he listened and is now making decent profits. Never, ever, ever compete by making a consistent loss as it is unnecessary, there are plenty of other USPs, smaller more specialist markets you can use to make higher margins and that way as your stupid 'sell at a loss' competitors go bust, it will strengthen your position in the market.

[Diamond Black Geezer]

Yup. And that's before you get a return, because someone makes a cock up in the warehouse, like they pack the Aqualisa AB1234567 Shower as opposed to the Aqualisa AB1324567 shower or something. It arrives, the customer isn't happy (rightly so) and so we have to pay return postage, of course (again, rightly so) Which again, eats into profits (or lack of)

I'm of course not saying that we have this on every product, some stuff is bought at 50% and sold at 20% etc.. but nevertheless it seems traditional in British Business that no-one makes the simplest of observations.

[aaronjb]

but nevertheless it seems traditional in British Business that no-one makes the simplest of observations.

Fixed that for you.

[Diamond Black Geezer]