February 1, 2010 12:50 AM

Shipping costs are increasing...no...decreasing!

It's going to be quite complicated, but that's worth it.

As we already explained here, the post prices in our country have outrageously increased in the last 3 years, making it the second most expensive Post service in Europe. In our business that's particulary terrible with one-CD orders (10€ in our shop): shipping to Europe in 2009 cost(ed) 5.40€ on top. To the rest of the world 6.30€. Did we already mention the Post makes more money than we do from our own business?

How can it be so much? Well, one jewel box CD is ~100 grams. With the enveloppe we're at 102 grams. So for one CD and an excess of 2 grams, we were forced to charge you for the 100-350 grams fare.There are aready workarounds: buying CDs by 2 or 3 to optimize stamps value (we have a calculator for that), or buying boxless CDs (one CD+artwork is only ~35 grams).


In order to maximize profit even more, the Post negociated with bookshops and supermarkets to let them do the stamping, while they would focus on their bank activities instead. Yes, we've been shipping your CDs from a bookstore since 2008 !
Problem is these retailers realized that was a lot of work for little money. And that little money was apparently still too much for the Post.

In France or Switzerland, there have been nice automats including a scale, a credit card reader and a change machine in every post office for years. However, to have them in our country, the Post needs to...invest!


So here's the masterplan: the Post decided to increase prices by 10% in 2010 (just like your salary, right)...unless you do the stamping yourself! You read it right, our stamps now have 2 values. If you buy them by ten or more, you pay them the 2009 price. Else, in a Post office or an outlet, or in small quantities, the 2010 price applies. To achieve that, our country's stamps no longer have a "facial value" written on them, but have a numeric "countervalue". For instance, shipping up to 350 grams in Europe requires 2 stamps with a little European flag and a number (3) on them.

Not to have our customers impacted by the increase we bought hundreds of stamps at the begining of the year when they finally got printed.

 

Now look, I said before the Post prices were especially bad when you purchased only one jewel box CD. Now we do the job ourselves, we are bound to use our own scale...that may have a small lack of precision. Something like +/- 2 grams...
Sure, there must be a weight control somewhere on the Post side, but not to have too much human intervention in the chain, there must be a margin of error. So thanks to the Post which though about everything, we're covered from the eventual lack of precision of our scale, which that was tested with a few promos.

So, starting today at Suntrip, shipping one jewel box CD to Europe is 2.70€ instead of 6€. To the rest of the World is 3.15€ instead of 6.90€. That's a decrease of 55% :) As for the other rates, we're already happy enough to keep them at the 2009 price.

Thanks for your attention.

Posted by: Fabien Mars
Comments: 3
From:Fiveandthree on Apr 19, 2010
genius!
You should be in charge of a bigger company! You're a job and money saving genius!
From:Pitou on Apr 25, 2010
Have you considered shipping from a (Neighbouring) country ? Looks like you could save a lot of money this way.
From:Johnb820 on Feb 1, 2010
You guys are awesome.
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