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Free Shipping Myth

Free Shipping MythFree Shipping or $7.95 or $9.95 shipping! We’d like to explore the ‘Free Shipping’ myth. Where did this misnomer start? When did it start and why is it so widespread?

‘Free Shipping’ most probably started years ago with the internet giant, eBay! To create a more robust online marketplace and clamp down on seller abuses, eBay promoted a delivered price to consumers as a way of standardizing their offerings. You pay what you see and no shipping. To the detriment of sellers, they all had to readjust their sales prices to accommodate the new program.

“Free is not free and nothing in this world today is free and remember, free is worth exactly what you pay for it, nothing”!
Uncle Frank

‘Free Shipping’ or lowball $7.95 or $9.95 shipping is actually misleading and deceiving. No one in the world can offer free shipping or lowball $7.95 or $9.95 shipping especially when the merchant has to pay for shipping. There is no way on God’s green earth that a merchant can ship a 25lb or a 50lb box interstate or intrastate for free or even a lowball $7.95 or $9.95 shipping charge; it just cannot happen. To stay in business, a merchant has to charge the consumer all costs related to doing business. Merchants all have to pay UPS or FedEx to ship their products around the country. Some pay more and some pay less depending on volume. Amazon, for example pays ridiculously low shipping rates but they still do pay for shipping.

The term, ‘Free Shipping’ should really be phrased ‘Shipping Included’ because that’s what it really is. It’s not free because you, the consumer are paying for it one way or the other. There is no way around it; none!

With lowball $7.95 or $9.95 shipping you’re actually paying an additional price for shipping because they can ship it for the sale price but rather charge the additional fee to earn more profit. It’s just added consumer costs and a way to get an additional $7.95 or $9.95 out of the consumer. The added $7.95 or $9.95 can be best explained as when purchasing a vehicle where the dealer has a ‘dealer fee’ tacked on to the sale price. We have all seen those horrendous 'dealer fees' which auto dealers try to extort more profit out of all of us. It’s the same thing. It’s just an added consumer cost and a way for the merchant to earn extra profit. Nothing more.

Let’s provide an example. Let’s say a wine kit costs a merchant $100 and that wine kit weighs 53lbs. The fully blown retail on that kit is $175. There are two ways to approach the marketing of that kit. The merchant can do a deceiving ‘Free Shipping’ approach where they sell the kit for $175 delivered. This is great for anyone residing clear across the country from the merchant but extremely unfair to anyone residing in adjoining states or in the same state as the merchant. The merchant pays more to ship the product further distances and a lot less for shorter distances. Therefore, at a $175 price, the merchant makes a killing on the shorter distance sales because their shipping costs are lower as they’re still charging $175 delivered.

The other way to approach the marketing of these kits is to do a sale price plus shipping which is the fairest method. We sell that same $175 kit for let’s say $105 to $115 and the consumer pays for the shipping of that kit to their front door. This is our approach.

In the $175 price tag scenario, the lowball $7.95 or $9.95 shipping is an added cost. In the ‘Free Shipping’, the shipping is included in the price so it’s really ‘Shipping Included’ and certainly not free to the consumer. One way or another, you the consumer are paying the full value for the shipping because we’re selling the kit for say $115. The shipping costs are included in the $175 price tag; make no mistake about that.

If you believe that a merchant can ship a 25lb box or a 50lb box for $7.95 or $9.95 then ask them to match our price and just charge you their fake $7.95 or $9.95 shipping charge. It won’t happen.

If a merchant disagrees and says the shipping is free to you, then ask them to match our price and deliver it to you because we’re profiting at a sale price of $115 and they are too at that same price. Watch them balk and do the pricing shuffle or what we term, the pricing mambo. No merchant can ship anything for free and you the consumer are paying for the shipping in the artificially higher selling price.

In reality, remember: compare our kit price to their kit price and ask why are they so much higher. Ask them to match our kit price plus their shipping charge. Anything to the contrary will be the pricing mambo. We're not looking to dance. We're looking to save you money with the lowest price, period. No haggling, no phone calls, just place your order online, sit back and relax with the low price leaders.

Our philosophy is real simple: our lowest price plus shipping. Plain and simple. Nothing deceiving, nothing misleading. No games, no tricks, no hidden costs, no dealer fees.

Thank you and we do hope this clarifies the ‘Free Shipping’ myth.

Now click on over and see our sales for this month!

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