Flat Rate Shipping

[egott_91]

Just curious when the flat rate shipping went away?  I can't seem to justify why it's automatically $11.94 to ship any regular product.  I tested to see if it would change with the products in the cart, obviously it went up when shipping gallons, but it costs more for shipping than if you were just ordering a 16oz bottle of something, or a single soft towel.  That $8 towel becomes $20 after shipping...

 

With that said...is the flat rate shipping option going to come back?  Or am I just going to have to wait till there is free shipping on a certain amount and hope at that time I actually need that much in product? 

[Ricky Bobby]

That's basically what I do, wait until there's a free shipping threshold.

I basically keep a running tab of what I'm getting low on or need more of and put one decent order together at once when there is a coupon and free ship promotion.

 

I thought the holiday sale had free shipping over 75?

Edited December 4, 2014 by Ricky Bobby

[egott_91]

That's basically what I do, wait until there's a free shipping threshold.

I basically keep a running tab of what I'm getting low on or need more of and put one decent order together at once when there is a coupon and free ship promotion.

 

I thought the holiday sale had free shipping over 75?

It might have, but I didn't need product. I was just looking around and thought about getting my brother a couple small items and that's when I noticed the shipping.

[SYMAWD]

I think flat rate went away when they changed websites.

[Adam]

We like transparency here at Adam's, and here is the reality: Shipping is the enemy of our business friends. You don't win paying shipping, and neither do we! FedEx wins. The reality is, the average order that leaves our HQ costs us between $11 and $13 to ship to you.

 

The alternatives are:

 

1- Use the USPS and save 50%, but increase shipping times to 7-10 days, no tracking.

2- Pack profit into the products by raising prices, so we can cover shipping and offer it free on orders over a certain threshold.

3- Initiate an Amazon-Style membership to cover a year of free shipping.

4- Sell everything through Amazon, who offers cheap shipping through their Prime program.

 

Anybody see a neat solution out there that I didn't mention? Our FedEx bill is nearly $500,000 this year, and trust me, $10K out to them every week, when we collect $3-4K in shipping from customers, hurts!

 

Has anyone seen my Bugatti? Ferrari? My villa? No, you have not, because we drive a pickup and a mini van. This awesome company is a passion, supporting American manufacturing, much more than it is a profit center. I love this business!!

 

If we could offer reasonable prices and free shipping even on small orders, we would! Consider a 2-bottle order. Total is $40. Product costs are roughly 50%, shipping cost 25%, and overhead costs, staff, rent, website, events, etc., another 25%.

 

It doesn't take a CPA to realize this process is dripping in red ink! So, we offer specials occasionally on shipping orders over $150, so the shipping can be absorbed.

 

Free or discounted shipping isn't making Amazon profitable either! http://www.fool.com/investing/general/2013/11/04/why-amazon-is-not-making-money.aspx

 

So, friends, the solutions we sell are made mostly by Americans. We don't employ Asian jail-laborers, so we can get ultra cheap goods with fat profit potential.

 

Did you ask for this narrative? No, you did not, but thanks for reading, and as always, thank you for your business!

 

-Adam

[SYMAWD]

We like transparency here at Adam's, and here is the reality: Shipping is the enemy of our business friends. You don't win paying shipping, and neither do we! FedEx wins. The reality is, the average order that leaves our HQ costs us between $11 and $13 to ship to you.

 

The alternatives are:

 

1- Use the USPS and save 50%, but increase shipping times to 7-10 days, no tracking.

2- Pack profit into the products by raising prices, so we can cover shipping and offer it free on orders over a certain threshold.

3- Initiate an Amazon-Style membership to cover a year of free shipping.

4- Sell everything through Amazon, who offers cheap shipping through their Prime program.

 

Anybody see a neat solution out there that I didn't mention? Our FedEx bill is nearly $500,000 this year, and trust me, $10K out to them every week, when we collect $3-4K in shipping from customers, hurts!

 

Has anyone seen my Bugatti? Ferrari? My villa? No, you have not, because we drive a pickup and a mini van. This awesome company is a passion, supporting American manufacturing, much more than it is a profit center. I love this business!!

 

If we could offer reasonable prices and free shipping even on small orders, we would! Consider a 2-bottle order. Total is $40. Product costs are roughly 50%, shipping cost 25%, and overhead costs, staff, rent, website, events, etc., another 25%.

 

It doesn't take a CPA to realize this process is dripping in red ink! So, we offer specials occasionally on shipping orders over $150, so the shipping can be absorbed.

 

Free or discounted shipping isn't making Amazon profitable either! http://www.fool.com/investing/general/2013/11/04/why-amazon-is-not-making-money.aspx

 

So, friends, the solutions we sell are made mostly by Americans. We don't employ Asian jail-laborers, so we can get ultra cheap goods with fat profit potential.

 

Did you ask for this narrative? No, you did not, but thanks for reading, and as always, thank you for your business!

 

-Adam

Adam, thank you for being upfront as always.  Perhaps you could make use out of USPS Priortiy Medium Flat Rate Boxes.  Yes, they are still $11.30, but they could be perfect for orders containing only towels, pads, applicators, etc.  It's a 1-3 day service with tracking.  Even, if it was no cheaper, I still prefer USPS Priority or First Class over FedEx.  From my experience, orders under 1lb and some under 2lb would cheaper for both of us going USPS Priority which is a 1-3 day service.  That way when we only need 1 product or just some light weight accessories, the shipping charges would be easier to swallow.  

Edited December 4, 2014 by SYMAWD

[TheWolf]

How about having USPS shipping be an option for the customer for those times when you don't need fast shipping and want a lower shipping cost?

 

I have had Amazon Prime for years and have gotten spoiled by the two day shipping but Amazon came up with an option for choosing standard no-rush shipping in exchange for a $1 credit for e-books and I have been using this option for about 25% of my orders.

[Rick72]

I have really have no issues paying for shipping. A consumer is always paying for it one way or another.

[CMDChase]

I'm fortunate enough to live in at area where Adam has several events. I usually buy my products there to save shipping costs all the way around. Also, a former Adams employee told me that FedEx charges less to ship to a business than to a private residence. So when I do order directly, I have it shipped to my workplace. Every little bit helps.

[Ricky Bobby]

Adam, thanks for the narrative, to be honest I like the way your shipping model is, believe it or not.

 

I know there are tons of us on the forums who love to just "put an order" in once a month for a couple things, who may not buy in bulk, etc, and thats great, but I'd imagine you'd always have to charge a normal shipping cost for those type of orders, because its the 3 bottles and a MF towel order @ $40 that would kill your business if you Flat Rated every order like that for $9.  Or the guy that orders 2 buckets and wash pads (big box) and flat rates it for $9.

 

I'm not one of the above as I mentioned earlier I like to wait until I can hit a free shipping threshold or take advantage of a coupon code discount, so I usually don't get shipping cost added to my orders since they are large enough.

 

If anything, I'd go along with #1, and piggyback on what Matt (BRZN) said, offer the Flat Rate or Priority Mail shipping option for smaller orders, "If it fits it ships", and as far as I knew all Priority Mail shipments had tracking.  Now again you'd have to weigh that with the USPS reliability and potential for errors, lost parcels, or customers being disgruntled that they can't get up to the minute tracking Fed-Ex style, but to be honest ever since the USPS basically went bankrupt I have to say they have been surprisingly reliable in my area and with any shipments to my house.

 

Just my .02...

[Grey Ghost]

I love the fact that you stay plugged in to your customer base, Adam.  I'm a recent convert and since I live in FL, I use one of your vendors (Thompson Racing) who is able to get me most orders in 2 days.  I might make a change once your east coast operation is up but I have been extremely pleased with the service from Eric.

 

Maybe I can offer a different perspective since I have held many management positions with FedEx for 22 years.  First of all, I agree that the average business loses money when it comes to shipping.  For an online retailer, shipping costs can and do sometimes exceed the cost of the product so it's easy to see that flat rate shipping can have serious implications on a company's bottom line.  Adam, you said this is a passion and that is obvious to anyone on these forums.  But make no mistake; no one goes into business to lose money and I doubt anyone here would expect you to either.

 

Have you worked with FedEx to see what other services they have that might help you offer a different shipping option for those people who don't need their items in a hurry or are only ordering a few items?  We have a fantastic team of professionals who will look at your total supply chain and offer solutions for every type of need you can think of.  Plus by leveraging the entire FedEx portfolio you should see some discounting that you can use to lower the cost to your customers.....or get that Bugatti.  FedEx has flat rate, "if it fits, it ships" solutions, they have a lower cost solution other than their Ground offering that ties into an agreement they have with the USPS. 

 

While I am in Operations for FedEx, I would be glad to help facilitate a comprehensive review or even to discuss this with you offline.  What drew me to your products is the level of involvement you have as well as the commitment to US manufacturing so I'm willing to help wherever I can.

[LFairbanks]

My personal thought is if you want it bad enough you will pay for the shipping.  Once ordered a spring for a pistol that was 3/8 of an inch long.  Came in a 6x6x6 box.  Spring cost me $2.  Shipping was $8.  

 

I personally am happy to pay shipping charges as it provides a living wage to those that are providing the service and moving the product.  Planes, fuel, electricity and wages aren't cheap.  This topic of wanting cheap shipping reminds me of why it seems as though most everything nowadays is made in China.  Except shipping can't be outsourced to another country.

[quebert]

What I hate about shipping is from site to site the $$$ amount seems to be all over the place. It doesn't help that Amazon has same day delivery on a lot of the things I've ordered and it winds up being the cheapest method to get it shipped.  And to offer same day SUNDAY shipping? Wow. With that said, I don't have a problem with paying shipping charges. I'm a gotta have it now kind of person. And more than once I jumped the gun and ordered something off a detailing site. Only to realize I wanted something else a few hours later and placing a 2nd order and paying 2x shipping. I try to not do that any more though.

 

With that last comment, I'm sitting on the Adam's store with one item in my cart thinking about paying more for shipping than the item costs (orange Hex grip pad) I said I *TRY* to not do stuff like that any more lol.  I've ordered detailing stuff from all over the country and Adams has good rates.

[LFairbanks]

What I hate about shipping is from site to site the $$$ amount seems to be all over the place. 

 

Volume is why.  Carriers offer discounts to customers who ship volume.  It isn't like the old days where everybody paid the same fee for a 20 pound box.  And the money maker is where they pick up 20 pieces for example and deliver them to one location.  As opposed to 20 different locations.  And there is a surcharge for residential deliveries, being they figure they aren't going to a residential stop everyday.  Like they would a commercial stop.

Edited December 5, 2014 by LFairbanks

[Feets31]

I was buying some non-detailing stuff from a company the other night and what I got was say something the size of a bottle of detail spray but probably a little lighter and a box of cyclo carpet brushes.  The bill was $20 and the shipping was $20.  So what we pay here is pretty fair.

 

I usually have my stuff shipped to my work and it saves maybe a dollar fifty.  I got a small box the other day from Adams and shipping was under $9.   And if you use the 10% discount code it pays for half of the shipping or more if you look at the savings compared to the shipping.  

[Adam]

I like your thinking Jim!

[Kingsford]

This is why I stock up. When I place an order I look at what I need now and what I might need 3 months from now.

 

Generally you should know how much of each product you go through in a week or a month. Some products like DS you might go through a 16oz bottle in a weekend other stuff like Polish might take a year to blow through a 16oz bottle.

 

That being said if you need something and only need 1 thing ether wait until you need more (there might also be a sale if you wait, Adam's is very good about sales) or if you absolutely need something, look at your stock and order what you might need in the future.

 

Basically what I'm saying is, if you are going to pay for shipping get the most out of it as you can. 

 

When you order something small you're not paying for the weight through FedEx (USPS, UPS, etc), you're paying for the space it takes up in their truck and its basically giving them money.

 

I'm all for the Amazon Prime or "Adam's Prime" idea.

 

But if we went the "Adam's Prime" paying the yearly membership fees, I'd like to see more than just "Free Shipping". If it was just free shipping basically you'd just be paying a membership fee that covers shipping upfront and you're still paying for it.

[Team Adam's]

Like Prime, a membership program is going to work for some people and not for others. Say the membership is $80 for the year, but you get 12 months of free shipping for that. If the average shipment to your place is $11 via ground and you order 20 times a year you'd save $140. On the other hand, if you're a person who orders only a couple times a year for big money and your orders cost around $30 it wouldn't make much sense.

 

But I do agree with you Kingsofrd - if you order what you need ahead of time the shipping doesn't sting nearly as much.

[Kingsford]

Thats exactly what I was getting at... I tend to only order 2-5 times a year. Shipping has never been over $20 for what I order, sometimes its free because of a sale or how much money the entire order is.

 

If someone is placing over 20 orders a year, I would think it's time to rethink, A.) Maybe order more than enough to stock up or B.) Maybe I should wait until I need more things. That is if shipping prices are a problem for that person. Or they need to become a distributer haha

 

My general rule of thumb... If shipping costs more than 50% of the cost of my order, I wait.

 

 

I mean no offense to any company out there but when I order my 5 Gallon jugs of APC... I'm going to wait for that Free Shipping Sale. Shipping 5 Gallons costs LOTS.

Edited December 5, 2014 by Kingsford

[gbod]

As Adam noted earlier in this thread, as big as Amazon is, they are not making any money from their shipping model.  They have realized that from a profit and loss standpoint, free shipping for prime members is not sustainable over the long term and has recently started incentivising prime members to choose slower shipping at check out.  

 

http://www.forbes.com/sites/retailwire/2014/08/01/is-amazon-prime-suffering-from-its-own-success/

 

Their business model is to completely wipe out all of the competition, even if it means taking a loss over the short term (and they often take losses), to strengthen their position over the long term.  I am a small business owner myself, and I know how it sucks to try and compete with the giant behemoths that can afford to drive the small guys out of business.  This is why I have no problem paying a little extra for shipping to support a small business, because I know the big box execs are already making plenty of money.

[Feets31]

A prime membership would likely be bad for Adams.  Too many one or two item orders when the person could have waited and placed one. Amazon does it on volume Adams or most other businesses do not have.  Amazon raised their's from $70 to $100.  Will it go up again next year.  They offer a lot of poerks with there, but I don't think I have used anything but the two day shipping.  

[Grey Ghost]

 

When you order something small you're not paying for the weight through FedEx (USPS, UPS, etc), you're paying for the space it takes up in their truck and its basically giving them money.

 

 

Kingsford is plugged in to shipping!  Dimensional shipping charges are something that the big shippers are converting to beginning Jan 1, 2015.  This is in direct response to the e-commerce explosion and the Amazon's out there only paying for weight of packages (currently) when their packages are taking up significant space on trailers.

 

As Adam noted earlier in this thread, as big as Amazon is, they are not making any money from their shipping model.  They have realized that from a profit and loss standpoint, free shipping for prime members is not sustainable over the long term and has recently started incentivising prime members to choose slower shipping at check out.  

 

http://www.forbes.com/sites/retailwire/2014/08/01/is-amazon-prime-suffering-from-its-own-success/

 

Their business model is to completely wipe out all of the competition, even if it means taking a loss over the short term (and they often take losses), to strengthen their position over the long term.  I am a small business owner myself, and I know how it sucks to try and compete with the giant behemoths that can afford to drive the small guys out of business.  This is why I have no problem paying a little extra for shipping to support a small business, because I know the big box execs are already making plenty of money.

 

gbod, spot on.  Amazon is banking on their Prime strategy to pay off long term in hopes that more people modify their shopping habits by increasing how much and what type of commodity they are willing to buy online.  I've seen my own habits change to where I have lately purchased staples from Amazon instead of trudging to the store.  It's the way things are moving.  There are so many demands on our time any more that those of us who enjoy spending hours on a hobby like our cars have to find that time somewhere.  So instead of taking an hour or more to go to the store for deodorant for myself, a calculator for my son, eyeliner for my wife and new ballet shoes for my daughter, I will spend 10 minutes adding these things to my Amazon cart and with Prime, have it in 2 days.  Now in one transaction I've banked an extra hour for what I want to do.

 

It may take 5-7 more years but Amazon is creating a base of people who will not be able to live without 2 day delivery and are willing to pay more for it.  I myself didn't bat an eye at the increase nor do I think most people had an issue with it.

 

For the record, I've never purchased Adam's products from Amazon.  I do understand that in order for me to be able to enjoy products like his, I may have to pay a bit more for them to be around.  Like most others have said, I wait until a sale for my orders.  I look at 10-15% off as Adam's way of offering free shipping and am ok with that.

[quebert]

Thankfully I live close to the Detailing.com store, they carry Adam's and most of the other brands, they have internet prices and I don't have to pay shipping or wait.  Only negative is when I go in the store my money vanishes.

[Faze]

Here is some insight from a Distributor for Adam's

 

Fedex has already started 15% to 20% increase on their rates as of lately too.

 

That is even on a corporate discount rates. I use to get 9% off on items that are 0-15.9lbs pounds, 12% 16-32.9lbs, 20% 33 to 50.9lbs and 27% on items over 51lbs

 

NOW its 6% for 5-15.9lbs, 11% 16-35.9 lbs, 15% 36-49.9lbs, 20% for 50lbs and over. Anything under 5lbs you pretty much pay full retail on shipping. 

 

I sent a friend of mine some cookies and it was going to Texas to Oklahoma, it cost me 18.xx! for something that weighed less than 2lbs!

 

Another example I send a pound of jerky to the warehouse from time to time, it was costing me 7ish bucks to do so. Last couple of times it cost like 12.xx

 

So while a 8.95 single soft towel maybe free to get shipped. Really that lil towel cost adams twice as much to ship. 

 

One of many options is looking at the dealer locator, and see if there is a Adam's dealer in your area. Or see if your local dealer has a promo code with free shipping. 

Edited December 6, 2014 by Faze

[LFairbanks]

Anything under 5 pounds is best suited being shipped through USPS.