posted on May 13, 2001 07:51:49 AM
Two sellers are selling the same item. It is worth $50. One seller has it for $30 and 3.50 shipping, the other has it for $20 and $5 shipping. Which would you bid on?
Those of us who know third grade math would bid on the second. Those of us who either flunked math or are willing to lose money on "principle" would pay $10 more to avoid 1.50 shipping overcharge.
Personally, I charge exact shipping cost but I have bid on auctions who didn't because I take the final cost into account.
The same holds true for auctions that add a "handling fee" if you pay with a payment service that costs money. It is YOUR choice to use that service and pay a fee or pay a different way and save the fee. Whining about the seller is just plain silly. Did you ever look at most mail order catalogs and even some sites? Though they don't say "2.5% for using credit card", many charge handling fees, excessive shipping or fees for orders under a certain amount.
I once heard a story about a farmer who was delivering his produce to the market. He was selling it for $5 a bushel. As each bushel was unloaded, the purchaser tossed a penny into a bowl. When the truck was unloaded, the purchaser would count the pennies and give the farmer $5 for each one. The farmer distracted the purchaser's attention and grabbed a fistful of pennies and stuck it in his pocket. Then he went home and boasted how he took the guy for 30 cents. Folks who get into rants about an extra $1 shipping or a 30 cent paypal fee and pass up bargains over this, may walk around thinking they saved 30 cents. It might end up that they paid even more for the "savings."
posted on May 13, 2001 08:00:08 AM
[[The same holds true for auctions that add a "handling fee" if you pay with a payment service that costs money. It is YOUR choice to use that service and pay a fee or pay a different way and save the fee. Whining about the seller is just plain silly.]]
Actually, "passing on charges" for a different method of payment is illegal. Your posted price is the posted price, and cannot "factor in" additional charges that you, the seller, may incur. If you need to do so, you need to factor it in to your original price, not as an after-the-fact add-on.
Do sellers understand math versus convenience?
The time that it takes me to stop somewhere, wait in line, and spend a "surcharge" of $0.75 to pick up a money order alone is enough to make me pass on an auction. I won't bid on auctions that don't offer online methods of payment, nor will I pay any "add on" charges for doing so.
Put it in perspective - my standard billing rate in day-to-day life is in excess of $200 per hour. Let's say it takes me 6 minutes of waiting in line to pick up a money order...when I find a seller willing to knock $20 off the auction price for my time to pick up a money order, I'll be more than willing to listen to this argument
Oh, and off-topic...I really like your site. I had no idea about the issues with PayPal (or that there were message boards here, either) before one of the people I bought something from referred me to your site for an explanation of why they don't use PayPal. Interesting reading.
posted on May 13, 2001 08:16:00 AM
>>Actually, "passing on charges" for a different method of payment is illegal. Your posted price is the posted price, and cannot "factor in" additional charges that you, the seller, may incur. If you need to do so, you need to factor it in to your original price, not as an after-the-fact add-on.<<
Of course you can't add fees after the fact. But you can charge a "handling fee" or an "extra shipping charge" to everybody and then discount it if paid with a method that doesnt cost. Like:
"Get $10 back if you join and pay with C2it. We accept Paypal, Billpoint, C2it, Moneyzap, check or money order. $10 shipping. We will give you a $5 discount if you pay with C2it, Paypal non-credit card, Bidpay, Payingfast, check or money order."
The end result is a $5 charge for using Billpoint, Paypal or Moneyzap.
>>Do sellers understand math versus convenience? <<
If the buyer doesnt like it, there are still other options, including online payment services that don't charge. But why should the seller lose money because the buyer is too lazy to sign up for C2it, which takes under 5 minutes? At least 8 of 10 of my buyers are signing up for C2it and getting the $10 bonus.
>>I won't bid on auctions that don't offer online methods of payment, nor will I pay any "add on" charges for doing so. <<
What most buyers don't realize is that when you shop in any store that accepts credit card, you ARE being charged for the credit card, even if you pay cash. I find this highly unfair. My goal is to give my customers the best price. So I would like to give them a choice of not paying these fees. I am trying to figure out if most ebayers are smart enough to look for the best price, or if the "principle" is more important. If I find that the price doesn't seem to factor into the equation, I'll do what the stores do and charge everybody a hidden cost just in case they might decide to use a service that costs me. I think it's silly but if they're asking for it...
