View Poll Results: How do you handle shipping charges?

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  • I gnore shipping and price frames based only on wholesale cost.

    25 62.50%
  • I markup the frame wholesale cost, then add shipping.

    6 15.00%
  • I add shipping to the wholsale cost, then markup the total.

    9 22.50%
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Thread: How do you handle shipping charges?

  1. #1
    Pomposity! Spexvet's Avatar
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    How do you handle shipping charges?

    What do you do?
    ...Just ask me...

  2. #2
    Master OptiBoarder
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    In the state of California, we pay sales tax on the wholesale price. Eyeglasses are not taxable to the consumer. I factor that in as well.

  3. #3
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    CM4 your think you got a problem.
    In Mississippi, doctors pay sales tax on wholesale costs only (in order that they will not appear to be merchants). But us independent dispensaries need to collect sales tax on the item at time of sale on the full retail amount.

    It gets worse, I have to pay sales tax on artificial eyes, even when medicare or medicaid pays (sort of) the bill.

    Chip

  4. #4
    Master OptiBoarder
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    Wow! Here we pay sales tax at wholesale on frames and lenses. Consumer pays sales tax on non-rx sunglasses and accessories. Before most vendors got their software to adapt to Ca, I had to have two accounts one for opthalmic frames and one for sunglasses. That problem was resolved some time ago.

  5. #5
    Bad address email on file Mikef's Avatar
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    Shipping charges are just like rent and electrical. They are all costs that related to doing busness.

    As far as mark up goes. I think if you have a product that sells well mark it up more. If it does not put it on sale.

    2 cents

  6. #6
    Master OptiBoarder
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    We used to mark up to only double + 10. It severely increased our cost of goods when the prices started climbing and shipping charges from manufacturers increased to replace the lower priced item that was on the board. This is often hard to detect if you re not computerized. Now, we price according to frame facts and add an amount that covers shipping (which in many cases this year is amounting to $6.and higher) plus the cost of the cleaning kit, or lens cloth + a pair of silicone no slip pads plus a nice case to the price that we provide and possible future services we do not charge for. My estimate is $30 to provide this type of service.

  7. #7
    Master OptiBoarder
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    Bev, Harry is going to be all over you for that post!

  8. #8
    Ophthalmic Optician OptiBoard Gold Supporter
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    Use the flinch method

    CME4SPECS:

    Harry should be all over Bev for that post !:finger:


    If you're margins are so close that shipping is a big factor, your mark-up is not high enough.

    My mark-up for mid-level frames : I take the price of the frame, add shipping, add the cost of a ski lift ticket for my family, factor in my house payment, add the cost of my son's tuition, adjust it for groceries, and add $10 -

    My mark-up for high end frames: Take the cost of the frame, add shipping, then,while the patient is having her exam, I go through her purse, find her checkbook, find her balance, and divide it by 3. Next, I go into the parking lot and see what kind of car she drives. I take the estimated value of her car, divide it by seven (my son's age). When the exam is over, I count the number of rings on her fingers and mutiply it by 14 (the # of yr's of tuition left to pay). If the end number seems to high, I subtract enough off so I can cover a nice vacation for my family, but still leave enough for the customer to buy gas on the way home. If the number seems to low, I add $299. Whatever number I end up with, I add $10.

    This might seem complicated, but I used to be in frame sales, and this is nothing compared to the formulas that some of the OD's told me they use. I once had a guy tell me he wouldn't buy my wholesale frames because I didn't charge enough. (When he plugged his formula into my prices, the retail was too low!! - true story) That's all I needed to hear for me to get into retail myself.

  9. #9
    Pomposity! Spexvet's Avatar
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    I can hear you now...

    "that'll be $800, Mrs. Jones"
    "What! That's outrageous"
    "Did I say $800?, I meant 2 pairs for $69!"

    :p
    ...Just ask me...

  10. #10
    Pomposity! Spexvet's Avatar
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    In summary

    It looks like we mostly ignore shipping charges, that's certainly the way I have done it. I just got an invoice for a pair of Coccoons. They're not different from others, I'm not being critical of them or any company - shipping is a legitimate cost. Hopefully you know the wholesale cost of Coccoons, the MSRP is $39.95. So my profit on that pair of Coccoons is reduced by 30% when I factor in the shipping charge. I think, from now on, I'll add in the shipping, then mark up that total.
    ...Just ask me...

  11. #11
    Isolate your eyes! Live Eyewear's Avatar
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    A $6 shipping fee on one pair of Cocoons increases your cost significantly. When you order Cocoons, remember that Live Eyewear ship all orders with a flat shipping fee of $6. (Guaranteed delilvery within three days)

    However, customers are reminded that we waive shipping charges on all orders of six pairs or more. So, it really pays to try and get 6 Cocoons in at a time.

    One more thing: Every quarter, you receive a FrameBack credit of 20%... so if you bought $500 worth of Cocoons in a calendar quarter, you would receive a $100 credit that you can use to the purchase of additional Cocoons. this also helps off set the price of shipping, as Cocoons do retail for $40-$45.. so a $6 shipping charge on one pair can severly hamper your gross profit.

    We try our best to give the best service possible with shipping and FrameBack. Every week we ship thousands of orders to eye care professionals. Currenty, 65% of all orders are shipped with no shipping charges as customers buy in lots of six or more.

    One more thing... the MINIMUM suggested retail price for Cocoons is $39.95. However, warranty registrations show that the average U.S. customer is buying Cocoons for approximately $46.00. Still a great value, especially when one looks at the quality and lifetime warranty. $39.95 is a little on the low side, so if you wanted to make sure you re-couped shipping, I would suggest a retail price of $45.

    Hope that helps.

  12. #12
    Pomposity! Spexvet's Avatar
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    Quote Originally Posted by Live Eyewear
    ...
    One more thing... the MINIMUM suggested retail price for Cocoons is $39.95. However, warranty registrations show that the average U.S. customer is buying Cocoons for approximately $46.00. Still a great value, especially when one looks at the quality and lifetime warranty. $39.95 is a little on the low side, so if you wanted to make sure you re-couped shipping, I would suggest a retail price of $45.

    Hope that helps.
    I truly did not mean to disparage your product, company, or your way of doing business. I used the example because I received the invoice while I was actually posting the response. I think I'll price Coccoons at $49.00, They're still a good value, considering the price of Rx sunglasses.
    ...Just ask me...

  13. #13
    Isolate your eyes! Live Eyewear's Avatar
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    Absolutely. no offense taken. I just want to make sure that you understand your options.

  14. #14
    Ophthalmic Optician OptiBoard Gold Supporter
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    Live Eyewear makes a great point about how important it is to buy in larger quantities. Considering some companies will throw in shipping as an incentive, it is well worth it. Even without the gratis shipping, it is cheaper to ship 10 pair than one pair when you divide it among the 10.

    Many of the products are like toilet paper - it's not like you don't know you're going to need more of it. Might as well stock up.

  15. #15
    Pomposity! Spexvet's Avatar
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    Quote Originally Posted by Johns
    Live Eyewear makes a great point about how important it is to buy in larger quantities. Considering some companies will throw in shipping as an incentive, it is well worth it. Even without the gratis shipping, it is cheaper to ship 10 pair than one pair when you divide it among the 10.

    Many of the products are like toilet paper - it's not like you don't know you're going to need more of it. Might as well stock up.
    But the patients seem to always pick the model/color/size that you don't have in stock, don't they?:hammer:
    ...Just ask me...

  16. #16
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    Xharge whatever...............................

    Bein a shipper....................I have to charge or loose my shirt. Any charge of this kind is an added value to the goods, whatever it is. You will have to add it, any way you want...............if you can get away with a higher value all the better. Competitioj will will keep you in line.
    Chris Ryser
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    http://optochemicals.com............................. http://arcoatings.com

  17. #17
    Master OptiBoarder OptiBoard Silver Supporter
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    Johns..very funny post.

  18. #18
    Compulsive Truthteller OptiBoard Gold Supporter Uncle Fester's Avatar
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    Tack on your S+H and board manage

    Quote Originally Posted by Spexvet
    But the patients seem to always pick the model/color/size that you don't have in stock, don't they?:hammer:
    We add $6.00 to the 3X published wholesale to cover S+H (we're also VSP) because:

    Five years ago when I ran the dispensary alone and had no time for frame reps I used to buy lots of product the way they liked (or so I was told- kit of this, kit of that). Before long most of my inventory was stale. The OD practice I'm fortunate to be a part of was growing and with the loss of a receptionist/stylist we realized we needed a second optician and separate receptionist. The optician we hired proved a God send! He suggested and the doctors aggreed to impliment "Board Mngmnt" into the practice. This has all frame reps coming in on a regular basis and rotating stock that isn't moving to new or other frames that may do better. When you cut to the chase maintaining a current board even with the reps removing/exchanging product is labor intensive but as we've found the only way to go!

    I'm now off thread and to tired to see if we have a Board Management pro's and con's thread going so I'll leave it at that.

    Fester

    :cheers:
    Last edited by Uncle Fester; 04-21-2005 at 11:31 PM.

  19. #19
    Master OptiBoarder OptiBoard Silver Supporter
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    I just spoke with the doctor about doing this today and I think i will be incorporating S&H into fees as well from now on.

  20. #20
    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    We just include it in our cost of goods.

  21. #21
    Master OptiBoarder AngeHamm's Avatar
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    Holy zombie thread, Batman!
    I'm Andrew Hamm and I approve this message.

  22. #22
    Manuf. Lens Surface Treatments OptiBoard Gold Supporter
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    Redhot Jumper The optician we hired proved a God send! .................................

    Quote Originally Posted by Uncle Fester View Post

    The optician we hired proved a God send! He suggested and the doctors aggreed to impliment "Board Mngmnt" into the practice. This has all frame reps coming in on a regular basis and rotating stock that isn't moving to new or other frames that may do better.

    Your god sent new system is saving you employee time and is costing you money that is charged to you for the work, sale and commissions, and merchandise, that is costing way higher that if you would manage it.
    Chris Ryser
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    DLO. NA.IC.I.T.PO

    http://optochemicals.com............................. http://arcoatings.com

  23. #23
    Master OptiBoarder OptiBoard Silver Supporter lensmanmd's Avatar
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    Quote Originally Posted by Chris Ryser View Post
    Your god sent new system is saving you employee time and is costing you money that is charged to you for the work, sale and commissions, and merchandise, that is costing way higher that if you would manage it.
    Chris, I respectfully disagree. Having reps come and rotate stagnant products and replacing them with current product not only saves labor costs, it reduces overall inventory costs, as the reps bear the burden of crediting your account for stagnant frames.
    Of course, this will depend on the contract terms. Our relationship with our frame vendors have saved us countless labor hours, payroll costs and have kept our boards relevant.

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