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nafex - Re: [nafex] Plant shipping costs (complaint)

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  • From: fluffy bunny <the.fluffy.bunny@juno.com>
  • To: nafex@egroups.com
  • Subject: Re: [nafex] Plant shipping costs (complaint)
  • Date: Wed, 6 Dec 2000 19:31:11 -0500

Chris:

As an FYI to you and others...

One of the "mailorder yourself to millions" schemes used by many
people(including myself at times)has been to offer a product at actual
acquisition cost and tack on a hefty postage and handling in fee. In
effect you are deriving gall of your revenue form the "handling” fee.
There are several advantages to this, such as simplified accounting, as a
handling fee is a service it is not normally subject to taxes(that is a
broad sweeping statement that varies from state to state, county to
county, and city to city).

>From a marketing standpoint companies often feel they can gain a
competitive advantage by advertising lower prices and recouping the price
differential on the shipping.

Less obvious reasons are it does not show up in a relevant way on
“inflation indexes” and dozens of other national statistics.

I guess another way to say this is many businesses use handling fees as
an intended basis of revenue.

Wishing you the best,

the rabbit
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