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What do I charge wholesale customers for shipping?
Hi SuN Members...
I need your advice on how to charge for shipping costs to wholesale customers.
I know I charge a shipping and handling charge for my own customers. But for the wholesale customers, do we only charge the actual shipping costs? OR can we also charge a handling fee along with the shipping costs?
So, to give you an example, I will ship the order via Global Priority. The actual cost is $16.00. So do I just charge the wholesaler $16.00? If I were to include handling, what would be a reasonable handling charge be?
Since this is my very first wholesale order, I don`t know the rules. I tried searching for the answer from the forums, but couldn`t find the answer. So, any help on this matter would be greatly appreciated.
Sincerely,
Jeannie
I need your advice on how to charge for shipping costs to wholesale customers.
I know I charge a shipping and handling charge for my own customers. But for the wholesale customers, do we only charge the actual shipping costs? OR can we also charge a handling fee along with the shipping costs?
So, to give you an example, I will ship the order via Global Priority. The actual cost is $16.00. So do I just charge the wholesaler $16.00? If I were to include handling, what would be a reasonable handling charge be?
Since this is my very first wholesale order, I don`t know the rules. I tried searching for the answer from the forums, but couldn`t find the answer. So, any help on this matter would be greatly appreciated.
Sincerely,
Jeannie
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Comments
On your price sheet that goes to wholesalers, you can include terms. In these terms you can have freight conditions, I do freight prepaid on orders of $2000.00 or maybe $1000.00 for certain companies depending on our relationships. You can make that condition any amount you are comfortable with. If these customers do not meet your minimum freight requirements, you are free to charge them what you want, but you don`t want to get out of hand or you will lose that customer for following orders.
Hope this helps!
I understand that I can include freight conditions on the price sheet. Since one of your conditions is freight prepaid on orders of $2000 or $1000, what other freight conditions are there?
A list of examples would be very helpful. That way, I can get an idea of what to charge wholesalers.
But for the majority, is it a rule of thumb just to charge the actual cost for shipping to wholesalers?
Thanks for your help in advance!
Jeannie
Thank you both for you kind input. I really appreciate knowing what others are doing. Thanks for teaching me!
Sincerely,
Jeannie
Another thought...when your customer sells the item they are going to calculate their price point and margin based on their total acquisition cost so you may want to keep that in mind and work backwards from that number to make sure you end up giving them a palatable cost per unit to move your stuff. That is just my .02 cents.
Sorry again that I did not check this sooner.
Thank you very much for your great advice. It`s shed some light on my problem for sure!
And Trent, no need to apologize. I`m very thankful for your replies.
Jeannie
For example:
In my case, the shipping cost is $16.00. So, using your advice, I would just charge $2.00 additional for the handling fee to make the total cost for shipping and handling to $18.00 for the wholesale customer, right?
Jeannie
Congrats to you on getting all the way up to this point! That`s so wonderful to hear!
As for me, I actually received my first purchase order from the big graphics tablet company called Wacom recently. And for them, I just charged the shipping plus insurance - at cost. I didn`t charge a handling fee at all. But for retailers, I usually just have them pay via FOB NJ.
But that`s just me. As Mary Kay suggested, you could also charge them a minimal handling charge too. Hope that helps!
Good Luck with everything!
Jeannie
I am getting my wholesale pricing ready now and having shipping be the responsibility of the customer.
ChrisAdams
Laptop Lifts
laptoplifts.com