Wednesday, May 13, 2009

S/H or free shipping?

I am struggling with the idea of providing shipping and handling for free or lowering the price and charging for shipping and handling. Both have appealing aspects.

Free shipping and handling provides a value sell when people know that many times a company makes more off shipping and handling then they do the product themselfs. This is like the warranty the electronics store sells you that has better margins then the product itself.

Lowering the price makes it more palatable to the buyer. Also, with a S/H handling charge, you can at least cover your back end costs. I know the seen as tv products charge quite high shipping and handling.

What are your thoughts? What is the best value proposition?

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