Firepitboss.com Makes Major Change Shipping Policy – Consumers Win
Policy change allows online buyers of the site to enjoy the benefit of lower overall cost. While this decreases margins to the company on individual items, it is expected to increase sales volume dramatically.
PR9.NET December 08, 2011 - USA
The initial concept of free shipping was not popular with company executives. It goes against the company business model for minimum percent of mark-up. Firepitboss.com website owner John R Waren stated "giving up margins is never an easy thing to agree to". Mr. Waren reluctantly agreed with marketing officials at the company who pointed out that users are frustrated when they finally settle on a particular fire pit only to find an enormous shipping charge added at check-out.
Some retail site will disguise the cost of shipping in a free shipping policy by adding the cost to the base price. "It may work for some sites, but I happen to believe that our customers are keen to this tactic" said Mr. Waren. The company did not raise the base price on the products; they simply agreed to bear the cost of shipping. Company officials are aware that shoppers are doing the math today and will not accept silly games.
The high cost of shipping is directly related to the inflated fuel prices that consumers and business owners alike are subject to. Every American is being forced to stretch their dollars and cut budgets today. Non-essential items have taken a back seat to groceries, gas for the car and high heating/utility bills. The high price of fuel has affected virtually every sector of our economy. Consumers are weary with high prices and have become very savvy shoppers. This shift in consumer buying practices has required retailers to tighten their belts in concert with buyers. Consumers have few choices when it comes to essentials; however, competition is endless for anything that is not considered totally necessary. Business owners like Mr. Waren are reluctant to give up any more of their margins; however, to remain viable in today's economy, it has become necessary. This is a win for consumers.
"In our business we have cut anything that even has a hint being non-essential. Just when we thought we had cut everything to the bone, we have gone the extra mile and absorbed the shipping. "Mr. Waren stated.
The company did an exhaustive study and found that the big box brick and mortars were also doing their homework. "It seems obvious that the large local stores are keeping a watchful eye on our websites and holding their prices just under the wire set by our e-commerce sites" Mr. Waren said. "Our online pricing has been very competitive with the brick and mortars until you start adding the high cost of shipping." He added.
The company is, so far, pleasantly surprised by the positive impact on sales. When asked if the free shipping policy will be permanent, the company officials have taken a wait and see approach. At a minimum, the policy will remain in place through the holiday shopping season.
The company still has to add shipping charges for small orders. "This is simply unavoidable due to the high cost of shipping today." Mr. Waren stated "We keep our shipping cost as low as possible even on the small orders." The company makes little to no profit when the order is for a small item that is really offered to enhance the larger purchases. They believe that it is still necessary to allow these small purchases as a customer service and trust that they will result in profitable return business in the future.
The company is not shy about admitting that profits are their ultimate goal. They believe that this new free shipping approach will give them acceptable results and is so far proving just that. Website owners in the niche market will likely always compete with the local big box brick and mortars. Advantages and disadvantages are certainly numerous. It is up to the consumer to make a well informed choice. "We are confident that our simplified approach will convert more of our site browsers into happy paying customers" Mr. Waren said.
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About Waren Enterprises, LLC
Waren Enterprises, LLC is an online retailer. Our sites feature niche markets for home and garden items. We build our sites around a single product offering, with related accessories so our customers can tailor their order to exactly fit theirs needs. This is unlike many retail sites that offer everything from key chains to the kitchen sink. We are confident this approach provides a much more streamlined experience to our customers.
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