Increase in Shipping Costs: Impact on Our Businesses

[PamperedChefDebi]

I just got my changeover kit yesterday and I was looking at the new Order Forms. I did NOT realize our shipping is going up $5 PER ORDER minimum! So if a customer only wants to purchase $15 in product, they must pay $6 for shipping PLUS $5 for Noncontiguous States. This really sucks!! $11 shipping for a $15 item? And for $66 in products, $19 shipping! People are really not going to be happy about this and I see this as having a HUGE impact on our businesses.

We HAVE to use direct shipping for everything. So now I see people trying to combine their orders and all the headaches trying to explain why they shouldn't do that.

I'm really worried about how my sales AND recruiting are going to look this year now.

 

[stephanieboyd]

WHAT!!!! How are we going to do that??? I don't have my paperwork yet so I hadn't even looked at CC. I knew that AK and HI were going up, but they get 2nd day air from Fed EX, I had no idea we were included in that too!! Just because they chose a more expensive shipper, why do we have to pay the price???

I am getting concerned about selling this to my customers too! The direct shipping rates weren't too bad to explain before, because we always pay a little more. Excuse my French...(err German) but DAMN!!!!!

 

[PamperedChefDebi]

Exactly! So a stateside show costs $4 in shipping and arrives via FedEx. One of our shows costs $5 per person PLUS shipping? So the show I just did had a total shipping cost of $69. Under the new shipping guidelines, it would cost $103.14 in shipping!!! That is crazy!! I think I'm going to contact HO about this.

I wonder if anyone thought about us when making these new rules. We, at APOs, are the only ones bound by SOFA regulations that require Direct Shipping for ALL orders.

 

[stephanieboyd]

HO used to be so good at following MPS guidelines, I don't know what happened!! Now the system will actually allow you to ship to the host, which is against MPS policy and the SOFA agreement.

Let your cluster know, see if they will all write letters or call too!!! I will join in if there is going to be a calling/writing campaign!!

 

[erinyourpclady]

I am with you ladies on this one! I lived in Okinawa for 7.5 years and they switch to the direct shipping just before I moved back stateside. The shipping is going to end PC at overseas military locations...period. NO-ONE is going to want to pay those kinds of shipping!
Start a petition...I will sign it and send it to all my clustermates....up and down the line....overseas and stateside!

 

[PamperedChefDebi]

I've brought it to my Director's attention. She didn't realize exactly how it was going to affect us either. I'll let you know what I find out. Like you said Stephanie, everyone was always tolerant of the direct shipping rates, especially since it came USPS Priority mail in a week, but I don't think this is gonna fly.

 

[melissakc]

Oh My Word!!!!! I can see this killing my business and I already have 7 shows booked that will be affected by this! What were they thinking???? How much does it really cost them to send the packages to New York to meet the MPS???? Does our Director have any suggestions for the cluster in responding to HO?
Melissa

 

[PamperedChefDebi]

She is supposed to be getting with Jo Price on some other issues (regarding the new kit containing the Large Bar Pan that won't fit in our ovens and getting a possible replacement) and she's going to ask her about this. She still hasn't received her changeover box so she wasn't aware either. I hope they can make some adjustment for us APOs because of the SOFA rules and the fact that we don't have an option. I already have 10 shows scheduled that this will affect and I'm worried too! And you have a valid point that USPS is only responsible to NY and then the military handles it!

 

[melissakc]

BTW.....Not Perfect, a little spoiled, definately Pampered.........love it!!

 

[PamperedChefDebi]

LOL! Thank you! It took me WEEKS to come up with it cause I'm so uncreative! Jessica gave me a million suggestions but my husband said the the right words to help me perfect it.

 

[trps]

Why do you not want to let them combine orders? the receipt? Even at $4 per customer order in the US I have guests that just out it together because they think it is too high. They deal with the receipt I just tell them that they will only have one receipt.

 

[stephanieboyd]

First, it's not really very honest or ethical....The receipt = the warranty!! Why would you encourage or allow people to nullify their warranty before they even get the items?? Because we are overseas, most of us are military families, so we move around and get separated from our friends and families.

Think about it, you have a good friend now that you want to combine orders with. Oh well, she will be here if I need my lifetime knife replaced, right? No, not with us. We move every 3-4 years and half of the people we are friends with now will be gone half way through our tours here. We are not planting roots and keeping the same circle of friends for parties.

 

[trps]

There is your explaination to give them at the show as to why they shouldn't. but I don't encourage it but it is like you said they will knoe each other forever. I just don't say you have to seperate that when they give me the order form if they ask I tell them they won't have their own receipt some say ok I'llsepereate some don't.

So is each persons order sent to their own house instead of like an order to host here? I could see that stopping the orders.

 

[stephanieboyd]

Nothing is sent to our houses!!! For me, my mailbox is 30 miles away. The MPS (military postal service) gives us each a box on base. We cannot ship an entire show to a host or consultant, because that is against the SOFA (Status of Forces Agreement) agreement that the US has with our host country. We are not allowed to sell to foriegn nationals within our host country, based on PC policies. If I chose to sell to German nationals, have things shipped to my German address, and combine orders (because the germans will all know their friends and neighbors for years)--I would have to quit the American division of PC and re-join the German division and pay German taxes. No thanks!!
I am an American businesswoman just like you. I have local laws to abide by, like you pay sales tax. We are being punished, in my opinion, for serving our customers who happen to live overseas with the military. We, and our customers, understand the sacrafices that we all make to live our chosen life. As I said before we know we pay more for shipping, but this is ridiculous!!!! We aren't doctors and lawyers, we are military!! We don't make enough to justify a $100 order then pay $19 for shipping!!!

I will get off my soapbox and put my flag away now. I am beyond furious about this new policy. I joined PC before joining the military community or marrying my military husband. I will still choose him and his lifestyle over anything else!!!

 

[PamperedChefDebi]

I really hope they readdress this. I feel as strongly about it as you do Stephanie! I'm trying not to panic yet. At least not until my Director can address this with HO. But I am already trying to think of ways I can "compensate" my customers if they have to pay the extra $5. I'd rather eat some of the money myself than lose customers.

 

[PamperedChefDebi]

OK, so HO had a Conference Call between my AD, Sherry Loftus, Jan Campinegro, Ginny Nuzzo and Terri Micelli in Field Services, Rich Hlava, the VP for Shipping, and Jack Lehrer, manager of Transportation. Apparently, what it came down to is the fact that they are losing lots of money and have been for 4 years now. The APO market is less than 1% of their total sales and it costs them a lot with the extra paperwork and handling of the boxes for customs, not to mention the cost of Priority Mail.

Then add all the times boxes get lost in the shuffle and we have them resent, only to have the customer eventually end up with two. And many times those customers don't send the second box back or do not know to mark it "REFUSED" so it can go back free or charge.

I know I've personally had this happen to me at the Ramstein Northside Post Office. I ordered Samples last fall in Aug. After I had to have everything resent, I FINALLY got the original box in DECEMBER!!! And then they told me it was final notice. I was HOT and told them this was the FIRST notice I got and how in the world could a box sit back there for 3 months???? Of course, they had no real answer. (And yes, I did send in a customer complaint. Annonymous of course, so none of my other boxes get "LOST.")

I also know PC can't track ANYTHING once it changes hands to military channels in NY. It's completely out of their control at that point.

So, this really sucks but we may be stuck with it. My Director reminded me of how painful it was when they changed our shipping over here from the flat $3.25 to the direct shipping rates but people kept buying then. The selling point of it is that 98% of the time our orders arrive in a week after being submitted.

OK, sorry this turned into an EPIC!!!

 

[stephanieboyd]

Thanks so much for all of the information Debi! I agree with most of it. But 20%-50% or more in shipping rates to get from IL to NY seems exorbitant. At those rates, we might as well be ordering from the German division and paying the VAT. I am really surprised that they are actually losing money on it. I know it happens, but I had no idea that it was enough to affect the bottom line.

I know we aren't that big of a customer base for PC, and they aren't going to be bending over backwards for us. I actually had some similar problems last August for the fall changeover paperwork. The Ramstein Northside Post Office is a zoo most of the time, so I can see how things can happen there.

Please thank Sandy for going to bat for the rest of us, I guess we will just have to smile and swallow it.

Guess it's time to start brainstorming ways to please our customers after this changes, huh?

 

[PamperedChefDebi]

Yes! And Sandi says she already has some ideas. You need to come to our next Cluster Meeting on the 9th! She'll have info then!

 

[stephanieboyd]

Actually my husband just started a Friday night poker league, so I may be able to get out of the house!! I will let you know as we get closer if I need directions or more information!

Thanks so much Debi!

 

[PamperedChefDebi]

Just let me know!

 

[chefann]

I'm sick about this change for you consultants who are military and are affected by it. Your families are doing a wonderful thing, defending our country, and then you get slammed by something like this. Ugh!

 

[PamperedChefDebi]

The sad part is, in many ways, we're used to it. There are still MANY on line stores that won't even ship to us. Amazing.

 

[stephanieboyd]

Wouldn't you just die for bestbuy.com right now Debi??

 

[chefann]

My sister and her family were in Stuttgart for a couple of years, and I remember her missing things that she couldn't get on base. But she was only a few clicks from the Ritter Sport outlet store, so (as far as we were concerned) that made up for it. We'd visit and take an extra suitcase to bring chocolate back.

 

[stephanieboyd]

I can tell you first hand that being overseas and pregnant, I would fight someone for a Wendy's frosty right now!!!! Ritter Sports are good, but I am not really a fan of chocolate. The Wendy's frosty is all I have wanted since the plane landed here two years ago!!!

 

[PamperedChefDebi]

Ummmm, Wendy's Frosty.......

You know that's the first fast food joint I hit when I go back to the States!!!

 

[chefann]

I'm ESP-ing both of you one right now! You know, they come in vanilla now, too.

If there were a way to ship some to you, I'd do so. But it would be all melty, even shipped with dry ice.

 

[PamperedChefDebi]

Vanilla? That's almost blasphemous!!!! Yuck!

 

[stephanieboyd]

No I didn't know they came in vanilla!!! I am tellin' ya, I would fight Dave himself for that!!!

My husband was going back to the States every month or so when he was on staff at HQ. Now that he changed units, no more travel for him!! He usually calls to rub it in that his hotel is across the street from a Wendy's or something.

 

[melissakc]

My hubby always goes to Arby's.....mmmm! He rubs it in everytime he goes back. Or Chick-Fil-A.
Vanilla? Are you serious? Waht other changes in the last 3 years? I get to go home this year for a visit but we are here for 2 more years.

 

[trps]

my daughter has a recipe for the frosty that tastes about the same I'll have her find it and e-mail it to you so you can make your own. Of course half the fun is they just hand it to you at Wendy's. I was in Germany for a month with my brother at (Ramstein SP?) what a great experience!

 

[trps]

recipehere it is 1/2 cup milk 4 t. ovalteen malted choc drink mix 2 cups vanilla ice cream blend in blender stop to mix with spoon as needed. Mix well till smooth she usually doubles the recipe

 

[PamperedChefDebi]

here it is 1/2 cup milk 4 t. ovalteen malted choc drink mix 2 cups vanilla ice cream blend in blender stop to mix with spoon as needed. Mix well till smooth she usually doubles the recipe

Oh, I can't wait to try this!!

When I was stationed in Italy years ago, we used to go to Venice just to go to Wendy's! There was actually one there hidden in all the narrow walkways.

 

[trps]

In Venice Italy for Wendy's that seems so crazy but when I went to Germany for a month to visit my brother we went to McD's once it was very expensive.

 

[stephanieboyd]

WOOOOHHHOOOOOO!!!! Did you all see the email from HO?? They fixed our shipping!!

As of April 23, all orders placed on your site which are requested to be shipped to an APO/FPO address will now be charged the lower shipping rate equal to that of the continental 48 states. This is for both ship to host orders as well as direct ship orders. This means that any orders placed prior to April 23 for Shows dated April 23 and forward will have the old higher rate. When you enter these orders into your PamperedPartner®/PamperedPartner® Plus, they will be entered with the lower rate. You may want to inform these guests that they will be charged the lesser amount.

 

[PamperedChefDebi]

WOOOHOOOO!!!! I am going to have some very happy customers. And some very pissed off ones too since they got stuck paying that extra $5!! But in the long run, YEAH!!!

 

[DMB75]

Starting April 23rd, we are no longer charging the extra $5.00 right?
I've lost one order from a customer because of shipping so I'll have to call her back.

 

[stephanieboyd]

After that email came out, I got another one that invited me to a conference call on Wednesday. Did you guys get that too? Of course, it's not until 5pm CST so we can fill everyone in on Thursday morning. I am wondering what will be left to be said two days after the change?

Just be sure to change all of your shows that are open to reflect Monday's date so the customers can get the cheaper rate!!!

 

[PamperedChefDebi]

I was considering participating in the conference call (got the e-mail too).

I just had a show yesterday. Now, if I change the date to lower the shipping, I have to deal with getting all those folks their $5 back. And it was a BIG show! How would you handle this? Just mail them $5 (not that I'd ever use the APO system to do that) or offer them another product? Maybe a free rub?

 

[stephanieboyd]

Will you see them at another show or be able to call/email them to offer them $5 off their next order?

If not, I think you can offer a free product that goes with whatever else they have ordered (ex. if they ordered bbq stuff give a rub, if they ordered cookbooks maybe a set of recipe cards, if they ordered baking stuff a pie gate, stoneware-nylon scrapers, etc).

IMO, I think they will just be thrilled that you are going to save them the $5 and will be amiable to whatever works best for you and them. I would think that most of us in this community are going to be thrilled to hear that you have the good customer service and the integrity to give them the best deal, instead of ripping them off.

I will probably talk to you Wednesday night on the conference call, be sure to get a nap in.......it will be a late night!!

 

[DMB75]

I'm so happy to hear that change and my customers will too!

 

[legacypc46]

Debi,

I agree with Stephanie: tell them the great news and then ask: "Would you like me to mail you a check for $5 or would you like to treat yourself and just simply add to your order, such as one of our great spices...or another item around $5. I know it isn't exactly free, but it kinda feels that way, doesn't it?"

I'm really glad they're removing the surcharge...but I did comparison pricing on the USPS site. The company is still paying out of pocket on A LOT of our orders...even with the extra $5. In this case, I'm glad we are such a small percentage of sales....so they can afford to do this for us!

 

[DMB75]

In May postage is suppose to go up again. So how can PC lower our shipping with the prices going up?