Fees for customers

[hollyflr]

I am also wire service free and charge $7.50 for sending out the order. I also offer my customers the option of calling themselves. Most let me do it and are happy to pay the $7.50.

 

[Joe Mioux]

Just curious, Joe, if you were to go up on the fee, what would t=you feel would be the correct amount?

If I were to change the price, I wouldn't base it on feeling.

I would count up monthly outgoings, multiply that number by the labor/minute expense for waiting on and sending out the order for the customer then add the amount of time it takes my office manager to reconcile the report and any other labor expenses that goes into WS management.

from the total cost I would divide that figure out by the average number of outgoings, then add 20 pct.

 

[prestonway]

If I were to change the price, I wouldn't base it on feeling.

I would count up monthly outgoings, multiply that number by the labor/minute expense for waiting on and sending out the order for the customer then add the amount of time it takes my office manager to reconcile the report and any other labor expenses that goes into WS management.

from the total cost I would divide that figure out by the average number of outgoings, then add 20 pct.

Or just add a couple of bucks...

lol

 

[avenuegardensflorist]

....

...$5.00 wire service fee. Was $3.00 till the highway robbery set in.
...$7.95-$9.95 delivery passed on to receiving shop

....$3.99 green fee so we can promote environmentalism
BUT actually PASS on the cost of billing our really great
and dedicated clients that we already charge $100+
per month membership to be a part of our team
and have the privilege to order flowers from us!

::BS
Oh wait, have I lost my mind? My bad. If
we did this as some of our really
great 'business partners have done to us under
the cover of a politically correct concept then
we would be out of business TOMORROW!


We are an idiot to continue to do business w/ our
really great 'business partners'. I've got to make some changes to fix the problems these partners have been causing ever since bad bob and the hollywood crowd. I guess I am my own worse enemy!

 

[Joe Mioux]

Or just add a couple of bucks...

lol

except when the customer would complain about the fee, at least i could justify the expense.

 

[marigold]

Or just add a couple of bucks...

lol

but, Joe's way is so precise and completely thought out.

 

[Joe Mioux]

but, Joe's way is so precise and completely thought out.

its only thought out in my head AND that doesn't count.

joe

 

[prestonway]

but, Joe's way is so precise and completely thought out.

Which is fine if you're into precision & thoughtfulness.

I'm personally into the "what the market will bear" pricing methodology.

Seriously...prices for this service range from free to $14.99 from the big boys.

Who's to say what the proper or optimum charge is, other than what your local market will bear?

We increased ours from $6.99 to $9.99, and had an increase in the number of outgoing...

 

[Joe Mioux]

Actually, a combination of what I suggest and what PW suggests is probably the best.

Know your costs then maximize the retail price up to the point that customers do not complain.

so if your costs are say $5 per order, but you think you can get $9 and start charging $9, once your customers complain, you can always back off a $1-2 or whatever to get to that equilibrium price where price matches your customers' indifference point.

 

[Victoria]

Charge what works for you and your business and customers. Be confident in the hows and whys that helped you reach your decision. There will always be people who will complain about the cost... there are people who apparently are shocked by delivery fees.

Even a nominal fee makes sense to me... at least it doesn't come as a great shock when you have to raise it.

V