We need to address shipping policy...Re: 611 Book

[NW Mailing List]

Overall, the commissary makes a profit which is used to fund the NWHS operating expenses. We normally show a net income or profit of about 30% of sales on an annual basis which have averaged about $92,000 over the past 5 years. As of Sept 30 we are showing a net income of about 34% of commissary sales. We do not publish actual figures on this public mailing list. Detailed financial reports on the total operation of the NWHS, running between 12 to 16 pages, are provided to the BoD and officers on a monthly basis.

 

Our Commissary inventories 174 items from decals to books and also handles 48 product skus for the Archives.

 

Alex Schust

 

 

From: NW-Mailing-List [mailto:nw-mailing-list-bounces at nwhs.org] On Behalf Of NW Mailing List
Sent: Tuesday, November 03, 2015 8:33 AM
To: NW Mailing List
Subject: Re: We need to address shipping policy...Re: 611 Book

 

The solution might be to hold orders until complete before shipping.  If something is unavailable at the time of the order and shipping, cancel that part of the order and ask the customer (usually, “member”) to re-order when available or place a back order with separate shipping.  However, what better way to serve the membership than to take a small loss on occasional Commissary orders, which have a small profit built in to the selling price?  The question is -  “Do we make a profit overall on the Commissary?”.  If so, there’s no real problem unless we want to make more money from the members.

 

Walter Davis

Youngsville, NC

 

From: NW Mailing List via NW-Mailing-List <mailto:nw-mailing-list at nwhs.org>  

Sent: Monday, November 02, 2015 9:27 AM

To: NW Mailing List <mailto:nw-mailing-list at nwhs.org>  

Cc: NW Mailing List <mailto:nw-mailing-list at nwhs.org>  

Subject: Re: We need to address shipping policy...Re: 611 Book

 

If THAT is the shipping policy then whoever is in charge needs to adjust to meet the needs. Losing almost $1,000 on shipping in a nine month period is very poor management. Shipping costs should be the actual cost to ship an item to the buyer. Charging more and especially less than those costs is just not acceptable. The price to ship every item needs to cover the actual USPS cost plus any and all materials used to box the items. Charging less is insane! 

 

My 2¢,

Roger Huber

Deer Creek Locomotive Works

 

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From: NW Mailing List <nw-mailing-list at nwhs.org>
To: NW Mailing List <nw-mailing-list at nwhs.org> 
Sent: Monday, November 2, 2015 6:54 AM
Subject: We need to address shipping policy...Re: 611 Book

 

 

On 10/29/2015 4:39 PM, NW Mailing List wrote:

In 2014 the commissary had  a loss of $520 on shipping. Through Sept 2015 our loss on shipping is $973.43 which is 1.79% of our gross sales. Our objective is to break even on shipping.

One of the reasons we have a deficit on shipping is we lose on shipping when we have to send an order in multiple packages. While this doesn’t apply in every case, it does apply in many cases. A second reason is we haven’t raised shipping rates in 2015 even though there have been some increases from the post office. We expect to see continual shipping losses as we send items digitally with a minimum handling charge rather than a shipping rate based on the commissary order amount....Whatever we do, we don’t expect any changes in our postage pricing policy.

Alex,
    I find your explanation incomprehensible and I have to question why we are losing money on shipping. Why are we allowing this to happen? Multiple packages or not, customers should expect to pay the actual cost of shipping and not a penny more. It seems that we do indeed need to look into our postage pricing policy and revamp it to where shipping costs are the actual amount.

Jimmy Lisle


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