How To Price Shipping
26/03/09 15:20 Filed in: Q & A
Q. Does anyone know to find UPS rates? I’m trying to get everything ready to start my business and I do not know how to price the shipping.
A. Many gift basket business owners use a standard chart for shipping, based on the selling price of the basket. For example, if the basket sells for $0 - $35, the rate for continental U.S. (non-residence, etc.) would be $8.95 (this is just an example, not a pricing suggestion). This price might be based on the highest zone price for a standard size box and weight. The UPS website has rate & zone charts which you can download if you have Adobe Acrobat Reader.
(www.ups.com). Take the price for this rate, then add on the cost of your shipping supplies, plus a percentage for handling. Now you will have a final price that you can put on your “standard” shipping chart.
During special seasons, gift basket business owners sometimes advertise “free shipping” specials as an incentive for early ordering. When this is in the marketing plan, the catalog price for the basket may be raised to cover a portion, or all of the cost of shipping.