Bluearan rant |
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GAZ.
Old Croc Joined: 16 January 2007 Location: Hertfordshire Status: Offline Points: 2433 |
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To be honest nowadays, I’d rather pay a couple of extra pound on shipping and Have things turn up promptly and not smashed. Cheap shipping is false economy.
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100% Earth Moving Bass
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Earplug
Old Croc Joined: 03 January 2012 Location: Europe Status: Offline Points: 7216 |
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^^^ This! |
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Earplugs Are For Wimps!
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MattStolton
Old Croc Joined: 04 September 2010 Location: Walthamstow Status: Offline Points: 4234 |
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If BA had a £XXXX Billion turn over, I'm sure they could afford to "throw in" postage. They don't, and margins on what they do sell is shite. Amazon have a massive turnover, and watch what sells by letting individual Co.s sell through them. When they see something selling well they approach the manufacturer direct and order big to further get margin, which undercuts the original vendors. Equally I don't think BA are quite big enough to offer in house Worldwide logistics, whilst Amazon do. On Postage, it always used to be called Postage and Packing. It takes time for a small co. to physically get a Jiffy bag or box, put it in, add some packaging to protect it from courier, print out labels, weigh it, log it with courier of choice, or run it down to the Post Office. You want that for nothing? Pop down the PO and see how much a A5 jiffy bag costs... And if you employ anyone, don't forget min wage, obligatory NI hike purporting to be Workplace pension, Corp Tax on profit, VAT, PAYE/NIC, rent, rates, £10M/£5M/£5M PLI, perhaps even stretch to buildings/contents insurance. So yeah, earning £6 for sticking it in a Jiffy bag is thickish, but your choice to buy from someone who hasn't thoroughly costed up their costs....
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Matt Stolton - Technical Director (!!!) - Wilding Sound Ltd
"Sparkius metiretur vestra" - "Meter Your Mains" |
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snowflake
Old Croc Joined: 29 December 2004 Location: Bristol Status: Offline Points: 3122 |
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my big gripe with all couriers is the ridiculous amount of packaging we all have to use so that they can save a few seconds by throwing the parcels into their vans rather than putting them down with a slight bit of care. Royal Mail really pissed me off by refusing to pay for damage to a heatsink I posted. I hadn't put loads of packing on it but the problem was that you could see tyre marks on it - presumably they had chucked it on the floor and then run over it with a forklift or something. Apparently my fault and no refund
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SamV
Old Croc Joined: 21 October 2008 Location: London Status: Offline Points: 8711 |
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Also worth noting that Amazon are playing the long game with margins on most of their products being as little as 1%. It's a race to the bottom. Once everyone else is gone, watch how they'll suddenly increase their margins and blam.
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nickyburnell
Old Croc Joined: 06 February 2005 Status: Offline Points: 4410 |
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It's everything, not everythink!
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I-shen Soundboy
Registered User Joined: 21 December 2016 Location: Big Smoke Status: Offline Points: 375 |
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Amazon are making far more from their AWS cloud services than they're making from their traditional sales operations. All that global logistics backend they built to cope with their size turns out to be very scalable and sellable.
They can run the warehouses at a loss indefinitely because they're raking in the loot from AWS...
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Andy Kos
Old Croc Joined: 15 May 2007 Location: Southampton Status: Offline Points: 3038 |
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Wow.. loads of talk about postage price. Interesting read.
Yes, some postage prices have gone up. Couriers have been increasing rates by 3-5% a year every year, plus adding fuel surcharges of up to 10% at times. We argue the case, but ultimately there is only so much we can say, and we have to cough up. We are slowly tweaking our price structures, for a number of reasons, and we are where possible trying to adjust our prices to charge packing and posting appropriate to a product. Its a complicated process, and we are confident we will get it all correct, but along the way their might be a few hiccups which we'll be working on The paint in particular is something we have had to put an extra charge on, mainly because we are getting through a lot of packing materials and it adds a fair bit of time (and therefore cost) to the shipping process to pack the paint safely. We will continue reviewing prices on this, and if possible we will try to reduce them. As has been pointed out already in this thread, most customers prefer to receive their paint tubs in one piece, and with the paint on the inside of the tub rather than the outside. This is something we are trying to make sure of. Some of our pricing also takes into consideration the item value. If you buy a £300 speaker we normally have some scope to offer discounted delivery, in fact 'standard' delivery is normally free on most higher value items. On £30-£40 of paint, we dont really have a great deal of space to maneouvre. Please remember, the VAT man gets 20% of everything, the paint, the postage, the packing. P&P of £8.49 is £7.07+VAT. If you can buy the bubble wrap, cardboard boxes, and get someone to pack it and wrap it, and then get it shipped for less than £7.07 then you are doing well. Shipping probably costs more than you think, we're just living in a world where the fierce competition online has driven people to offer free shipping to help push sales. In many cases this is because the retailers are sticking to a 'fixed' recommended retail price, so their only marketing weapon on price is shipping, so it becomes free. This gives a distorted perception of what postage and packing actually costs, because it's almost always offered free on higher value items. We will be reviewing delivery prices again in due course, with the aim of trying to make them as fair as possible whilst still covering our costs. |
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just a guy with a warehouse and a few speakers... www.bluearan.co.uk
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Andy Kos
Old Croc Joined: 15 May 2007 Location: Southampton Status: Offline Points: 3038 |
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This is one of the reasons we abandoned some of the product lines that Amazon jumped on, such as Behringer. There is still a little profit there, but its low. I wouldn't agree the GROSS profit is as low as 1%, its higher than that on Behringer, but the NET profit (after all your running costs) could easily be between 0% and 5% on behringer, so 1% isnt impossible for net profit. In fact, if you have a bad run on warranty returns, it can end up costing you money. So from our point of view it was best to quit as there was no future with brands like that. You are totally right about the long game though, I seem to recall reading somewhere about some ex-amazon executive staff whistle blowers who spilled the beans sometime after leaving amazon. When they were employed they were basically given a target market, and told to get minimum 75% market share and eliminate the competition, even if it meant running at a loss to do it. |
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just a guy with a warehouse and a few speakers... www.bluearan.co.uk
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Andy Kos
Old Croc Joined: 15 May 2007 Location: Southampton Status: Offline Points: 3038 |
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We are aware of a few syncing issues, obviously where this is our mistake we honor the price and complete the order if we have put the price wrong on ebay. There have been a lot of price increases from many manufacturers this year, and updating our website is a very quick process, updating ebay, not so quick, and also not obvious if something goes wrong. In fact, we just received notification Fane are increasing prices approx 5-10% on 9th July. So there is another price rise to implement soon. The main problem is the pound is stuck at a very low value with respect to euro and dollar, and raw materials costs are increasing, and everybody (at every level including factory worker) wants a pay rise. There have been a few lucky people who got some really good deals on ebay over April, May and June, but we think we have synced the pricing on almost everything now. |
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just a guy with a warehouse and a few speakers... www.bluearan.co.uk
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njw
Old Croc Joined: 26 March 2010 Location: S. Wales Status: Offline Points: 2574 |
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^^There we are, straight from the horse's mouth, you wouldn't get that with many other companies!
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