Minimum delivery charges get on my nerves

[youngoldbloke]

Here is an experiment for you to try

Go onto a large site like Amazon or "Shopping" on Google

Then compare the prices.

It is revealing how many of the lower prices have higher shipping costs and the higher prices lower shipping costs

When you add the two together there is usually little difference across the board, so "free delivery" often isn't!

I always check this out - and always order from the cheapest. This is why I often end up ordering from one the German sites - for larger purchases of course. I just received a package from China - lowest price and free post - and genuine product, and within a few days. I can't afford to pay more than the lowest I can find, and unfortunately most of the time the LBS doesn't get a look in, even with a 10% club discount, and doesn't offer much choice anyway.

 

[SpokeyDokey]

It's a b'twin garment which really narrows it down

Just that £70 minimum spend is an awful lot of money and not a light purchase.

At the end of the day though I wanted their product so paid the money.

Well it may well be a lot to you but that's pretty irrelevant from the retailer perspective.

They will set the threshold at what works commercially for them ie will they make the required margin and will they alienate the customers that they are interested in.

It's a harsh world is commerce and (in no way do I mean this disparagingly) maybe their target customer is not someone who thinks that £70 is "an awful lot of money".

Not every retailer (most in fact) wants to do business with every customer who has money to spend. They have targeted audiences and will cut their cloth (so to speak) to suit.

 

[youngoldbloke]

Decathalon are obviously not interested in customers in all of the west and southwest of the UK. they could make a really huge amount of money if they opened a few more stores west of Oxford.

 

[SpokeyDokey]

Decathalon are obviously not interested in customers in all of the west and southwest of the UK. they could make a really huge amount of money if they opened a few more stores west of Oxford.

How do you know that?

Do you have a full appreciation of sites available, development costs of available sites, operating costs of available sites, demographic breakdowns of available locations?

And even if there is a site that hits all the right buttons there may be other sites elsewhere that offer better returns.

And all this assumes that Decathlon have the desire, financial capability and service infrastructure to open a new store in the first place.

 

[youngoldbloke]

How do you know that?

Do you have a full appreciation of sites available, development costs of available sites, operating costs of available sites, demographic breakdowns of available locations?

And even if there is a site that hits all the right buttons there may be other sites elsewhere that offer better returns.

And all this assumes that Decathlon have the desire, financial capability and service infrastructure to open a new store in the first place.

OK, I dont KNOW that they would make a huge amount of money from stores in the SW of the UK, but they do seem to be ignoring the potential (OK, I dont KNOW that either). I have emailed them in the past asking about their plans, but to no avail. Can't believe they don't have 'the desire, financial capability and service infrastructure' (with 739 stores worldwide), or that conditions are so difficult for them west of Oxford. For the moment I will shop elsewhere.

 

[T.M.H.N.E.T]

Move to NI then actually have something to complain about

Free delivery on orders over £100 cost me £12 recently

£2 odd surcharge on top of postage due to requirement to use a courier (In fairness it was co2 cartridges)

Luckily CRC is pretty much on my doorstep so I go and get a lot of stuff

 

[nickyboy]

True but irrelevant. We're not talking about high-street retailers, we're talking about online retailers, where margins are often razor-thin.

'Free delivery' is no such thing - it's just a cost added to the price, and as it gets added to each product, you generally end up paying more when buying several items.

errr....relevant. If you bother to read the post I was replying to there was an assertion that "margins" for online retailers are often 3-4%. I contend that this is not the normal margin an online retailer operates on. Whilst overheads are lower online, they are not zero. You can only run a business on a 3-4% margin if you have huge volumes which most online businesses do not have.
If you have examples of online retailers operating on such low margins then, of course, I am happy to be corrected

 

[SpokeyDokey]

OK, I dont KNOW that they would make a huge amount of money from stores in the SW of the UK, but they do seem to be ignoring the potential (OK, I dont KNOW that either). I have emailed them in the past asking about their plans, but to no avail. Can't believe they don't have 'the desire, financial capability and service infrastructure' (with 739 stores worldwide), or that conditions are so difficult for them west of Oxford. For the moment I will shop elsewhere.

They only have a few (15) stores in the UK and they won't have any real economies of scale within the UK supply chain.

There financial muscle is currently being used in emerging markets. Just seen on Google they are opening 60 stores in India over the next 5 years and then pushing on to 100. Looks like their focus sits outside the UK.

 

[helston90]

and (in no way do I mean this disparagingly) maybe their target customer is not someone who thinks that £70 is "an awful lot of money".

I may not be a massive spender but they're a company selling reasonable quality (so i'm told) jerseys for £5 each at the moment- perfect for the commute- and hundreds of other items for under £10 so must have me in mind in their pricing structure.
@marknotgeorge I think made a very valid point ref the encouragement to spend more- however a lower tipping point (such as Planet X's and Cycle Surgery's £20) means I would push it up to achieve it.

 

[CopperBrompton]

If you have examples of online retailers operating on such low margins then, of course, I am happy to be corrected

Amazon operates on a 0.2% margin.

I'm not arguing that 3-4% is the average, but there are online retailers out there operating on that or less, and many retailers operate at margins where free delivery on small orders would result in a loss.

 

[SpokeyDokey]

I may not be a massive spender but they're a company selling reasonable quality (so i'm told) jerseys for £5 each at the moment- perfect for the commute- and hundreds of other items for under £10 so must have me in mind in their pricing structure.
@marknotgeorge I think made a very valid point ref the encouragement to spend more- however a lower tipping point (such as Planet X's and Cycle Surgery's £20) means I would push it up to achieve it.

Doesn't work like that. M&S sell lots of things for less than a tenner but you are probably not part of their target audience.

Even people who think that £100/£1000/£10000 etc is not a lot still buy things for less than a tenner.

 

[Brains]

I would have to spend £70 :O , a site my wife loves is a similar £75 minimum, just takes the mick, I spend over a days wages on stuff at your site and pay the privilege of you sending it to me. Nearest Decathlon is 150+ miles away so didn't have a choice if I wanted to buy their stuff, and having basketed £30 worth, I have to pay. humph.

Rant over.

..... and now you know why I moved out of Cornwall as a teenager.

Whilst the 'minimum wage' is £50.00 a day (£6.81p/h) this is what the lowest of the low unskilled should be getting, IE Security staff working nights who don't speak English are not actually expected to do anything much.
The minimum 'Living Wage' for the same unskilled job is £61 a day ((£7.65 p/h) outside London.

Anything involving a skill or interaction with customers should be paid considerably more

I well aware of the job situation in Cornwall as I have two sisters and their children who are all now late teens and about to enter the jobs market in-between education and the local pub and restaurant are both looking for bar staff and waiters but only offering minimum wage.

In London, Part time cleaners (with zero or minimal English) are paid a minimum of £10 p/h, and obviously more for the full time ones that do speak English and can do a bit more such as ironing etc.
As I've told my nephews and nieces, if the best you can get is minimum wage, then do the same job is London and still get crap money, but at least you can live on it.

There are a number of Cornish small employers who seriously need their taxes looking into by a forensic accountant.