Shipping is going to get even more expensive

USPS is going to put and 8% surcharge on packages due to fuel prices. I assume many shippers will follow. Diesel is $7 in California. I feel bad for wineries as this is just another hit that will affect them and consumer. I assume the shipping discussion will continue

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Sigh, so I’m going to rant a little … why are all purveyors–restaurants, hotels, shippers–tacking on surcharge after surcharge after surcharge. Everyone seems to be trying to shirk their responsiblity by reassigning blame to others–that having to pay more for their goods and services is someone else’s fault. Stop it! Please, please no more autograts, no more kitchen appreciation surcharges, no more hospitality fees, no more tourism promotion assessments, no more employee sick leave fund contributions, and on, and on, and on. Just be honest: raise your a la carte prices! I dont’ want to see on my check or invoice the details of what’s driving up your costs. Don’t try to hide it: the cost of what you’re selling is a lot more than what it was before, and it’s increasing far more and much faster than your customers’ disposable income.

As with any rant, I offer this with an underlying positive spirit. I invite any and all feedback–especially opposing views.

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I get the rant, but cost increases are cost increases. This thread is about shipping - and we have already received notice that our shipping costs are going up. We can continue to eat this and shrink our already small margins as a very small winery with quite reasonable bottle prices, or we can pass some of this on to our customers. Truly puts us in a precarious situation.

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I mean, in this case, it is very much someone else’s fault.

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I’m fine with paying more for shipping. I get it–costs increase over time. What I object to is the way that increasing costs are being presented.

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You forgot BIDs. From what I hear, that one is all @larry_schaffer’s fault! :upside_down_face:

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It might be a way for them to signal something along the lines of, “Hey, it’s not just us. You’re likely going to run into this elsewhere, too, so you might as well keep buying from us because the grass is not greener on the other side.”

So, to answer your question more succinctly, “It may be an effort to retain business.” No comment on whether that’s a good/effective idea.

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Au Contraire, my friend . . .

That’s part of what I’m wondering: whether adding surcharges instead of increasing a la carte prices is aimed at retaining customers–flowing from the hope that an “I wouldn’t be doing this to you unless someone was doing it to me” explantion will engender sympathy/loyalty and keep the customer coming back instead of leaving.

Except… we’ve been paying shipping fuel surcharges since oil went through the roof before the dotcom crash. And then it came back down and naturally they didn’t remove the surcharges. In fact they’ve been increasing them every year the past few years as fuel prices went down substantially. So now they are kind of in a bind. They used to be 5-8% but even before this latest war, they have been over 20%.

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I like the cut of your jib. Bravo.

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He didn’t forget.

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I’m not happy about increased costs but I don’t care at all where they put it on the bill or how they try to explain it. If the bottom line is more than I’m willing to pay, I’m out.

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:man_shrugging:

I dunno. I’m sure some there are various reasons for this dynamic, and not all businesses do it for all the same reasons.

It doesn’t really matter, though. Customers should always just look at the all-in cost (both monetary and otherwise), and decide from there if it’s “worth it” to them to make the purchase.

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Got a better idea. You want them to just jack up prices to reflect their costs. I bet you would get up in arms about that too!

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I am hoping that as a ‘surcharge,’ this cost to me will go away when prices come back down, eliminating the need for the ‘surcharge.’

My superstition is that if they simply raised the price to accommodate fuel costs, this expense would never go back down.

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That is a great point - and one that always concerns me as well. Many businesses are somewhat ‘forced’ to increase pricing due to increases in productions costs including gas prices; but many choose not to go back even when those costs decrease - and that’s upsetting for sure . . .

Cheers

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Or perhaps I’m simply on here talking about it without bashing other winemakers in our area - but instead trying to have logical discussions about it . . .

But no, I did not come up with the idea - and I am not passing these charges along to the customer but instead eating them myself . . . so there! :innocent:

Cheers

The fuel surcharge was 57.5% this week on a west coast pallet move.

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This is the key to me. I get calling it a surcharge if it is a temporary measure taken because of increased costs directly related to the now-concluded (s/) war in the Middle East. If the surcharge then disappears, I get both the up-charge and the nomenclature.

We shall see.

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