At What Price Level Should a Seller Pay the Shipping Fees?

[JayFreddy]

I'm talking about shipping instruments, not little things like picks.

Amazon and Musicians Friend both have free shipping on orders over $25, so that would include most guitars. On eBay and in the TDPRI classifieds, there seems to be more variation.

For a $20 pickguard, sure, let the buyer pay the $3 or $4 standard shipping. But I can't imagine paying $40,000 for an investment-grade vintage instrument, and then getting nickle-n-dimed on the shipping.

I imagine there will be different views on this, and I'm trying to see if there's a consensus (or not) of how/how much/when to charge for shipping a guitar that's been purchased online through the TDPRI classifieds.

I have to admit, I haven't given this a lot of thought, but at some point, I think the seller needs to pony up and at least contribute to the shipping fee, if not cover it entirely.

For myself, I feel that if the instrument costs more than $300, the seller should offer to pay for at least half the shipping fee, and give the buyer the option to pay extra for premium shipping services like two day or overnight. Especially considering that MF and Amazon are free.

If the price is over $2K, the seller should offer to pay the full standard shipping fee, but give the buyer the option to pay extra for premium services if desired.

I admit that these numbers are completely arbitrary, but they just "feel right" to me... Maybe I need to sell more and buy less, then I'd have a different perspective!?

[rangercaster]

in a business deal , the buyer pays shipping... or the seller includes (adds in) the cost in the price so the buyer still pays ... a recent thread featured a Les Paul's owned by Les Paul on Ebay ... Buy it Now for $500,000 ( +250 shipping) ... at that price point, they should offer to deliver it for free, in person, and at the very least bring a pizza or two ... and a case of beer ...

[JayFreddy]

Originally Posted by rangercaster

in a business deal , the buyer pays shipping... or the seller includes (adds in) the cost in the price so the buyer still pays ... a recent thread featured a Les Paul's owned by Les Paul on Ebay ... Buy it Now for $500,000 ( +250 shipping) ... at that price point, they should offer to deliver it for free, in person, and at the very least bring a pizza or two ... and a case of beer ...

I have to admit, that was one of the threads that got me thinking about it... For half a million, it should come with a new car!

[Lunchie]

Originally Posted by rangercaster

in a business deal , the buyer pays shipping... or the seller includes (adds in) the cost in the price so the buyer still pays ... a recent thread featured a Les Paul's owned by Les Paul on Ebay ... Buy it Now for $500,000 ( +250 shipping) ... at that price point, they should offer to deliver it for free, in person, and at the very least bring a pizza or two ... and a case of beer ...

+1

When I sell on eBay I dont play around with shipping. Instead of starting an auction at $0.01 with shipping I start it at cost of shipping and packaging. If I am doing "Buy it Now" I just figure what I want out of it and add the shipping and packaging.

[JayFreddy]

Why is it that we expect free shipping from Musicians Friend or Amazon, but from a private seller, we expect to pay for it?

[holndav]

My experience FWIW (and quite possibly validated by this thread)...

Including "free" shipping will attract more buyers (including me when I am the potential buyer).

Then all you have to do is work it somehow into your price expectations.

So, let's say that I think the guitar I am selling is worth $500. I need to first decide if I can accept $460 or so for it and "eat" some of the shipping or if I can get a buyer to pay $540 for it...or somewhere in between which is where I usually end up. Sometimes a seller (me for example) will/should also cover insurance and things like delivery confirmation too which can breed some great goodwill.

The trick/challenge is knowing what it will actually cost to ship to most parts of the lower 48 and possibly making a note that other areas will be an additional charge of $10-15, etc.

[KevinB]

Originally Posted by JayFreddy

Why is it that we expect free shipping from Musicians Friend or Amazon, but from a private seller, we expect to pay for it?

Because you're not really getting free shipping from MF or Amazon. Aren't they just figuring it into the price of the item?

[bossking7]

I just got a Tele shipped for $6. If its over $100, I would pay the shipping and not charge the buyer for the shipping.

[waparker4]

Originally Posted by rangercaster

in a business deal , the buyer pays shipping... or the seller includes (adds in) the cost in the price so the buyer still pays ... a recent thread featured a Les Paul's owned by Les Paul on Ebay ... Buy it Now for $500,000 ( +250 shipping) ... at that price point, they should offer to deliver it for free, in person, and at the very least bring a pizza or two ... and a case of beer ...

+1. It was greedy of that seller to charge $250 for shipping.. he already factored in $492,960 worth of shipping into the BIN price

Originally Posted by R.S.Fraser Sr.

As I have posted elsewhere, the winning bid for that instrument (serial 00332400) was 7,040$ in the Julien's auction, in June.

They are looking for a tidy profit, eh?

[waparker4]

Originally Posted by JayFreddy

Why is it that we expect free shipping from Musicians Friend or Amazon, but from a private seller, we expect to pay for it?

Is it because sellers of instruments en-masse get shipping deals that we ordinaries cannot get when shipping 1 thing at a time?

[KokoTele]

Why are you comparing a loss-leader like free shipping from a big-box retailer to individuals or small retailers? Totally different economics at work, and totally different business models.

Also, when you get to such expensive items, shipping and insurance is an enormous cost. Some of you may remember Bill Hullet's story from many years ago when he sold his vintage Nocaster. (It was a Nocaster, right? I may have that detail wrong). He found that the cost of shipping and insurance was the same as a round trip plane ticket, so he told the buyer that he'd hand deliver it if the buyer bought the ticket.

[pondcaster]

Seller's preference.

If offered as free shipping, that cost/charge almost always comes out of the final bid, dollar for dollar.

Having bought/sold probably 30 guitars over the last decade, I've seen this play out time & time again.

[Arbiter]

Originally Posted by waparker4

Is it because sellers of instruments en-masse get shipping deals that we ordinaries cannot get when shipping 1 thing at a time?

Bingo. You would find the discount very impressive.

[stratofortress]

I buy quite a bit of guitar parts off of Ebay and I certainly will give the ads with free shipping more of a look and just factor in my mind what I'm saving on shipping and bid higher.I hate paying over the top shipping..if its resonable I'm okay with it.

[Luthier Atlanta]

I let the buyer, I will box, weigh, deliver to a shipper of their choosing.

[Jack FFR1846]

It "depends".

I had a deal nearly complete on one of my guitars. The guitar itself was sold at $275. Cheapest shipping I could find was $180. Are you saying that I should eat the shipping?

And yes, it was going half way around the world. In the end, the buyer decided to pay the exorbanant local prices to him for a local guitar so he could play it first. I let him off the hook on the sale as it was the right thing to do in my mind.

[Joe-Bob]

I don't think there actually is a price point.

Check out Benedetto's website. Their prices are listed; the buyer pays shipping. Depending on the guitar, it's either 3rd day air or next day air by Fedex. Mine got here in two. (It was 3rd day air.)

[Chud]

I'd always love for the buyer to pay the fees unless I'm the buyer.

[JayFreddy]

Originally Posted by holndav

Sometimes a seller (me for example) will/should also cover insurance and things like delivery confirmation too which can breed some great goodwill.

I agree. Goodwill is something I consider, both as a buyer and as a seller.

Originally Posted by stratofortress

I hate paying over the top shipping... if it's resonable I'm okay with it.

Again I agree. I'm in Dallas, which is at most a two-day drive from anywhere in the contiguous United States. As a buyer, I will generally avoid guitars with shipping priced over $35. I know what it costs to ship a guitar, I've done it myself many times.

Originally Posted by Jack FFR1846

It "depends".

I had a deal nearly complete on one of my guitars. The guitar itself was sold at $275. Cheapest shipping I could find was $180. Are you saying that I should eat the shipping?

Of course I'm not saying that. International shipping is a pain in the butt, but unlike a lot of eBay sellers, I'll still do it as long as the buyer agrees to pay the actual shipping costs. I only ship internationally to specified countries, and all international bidders need to contact me first to get permission to bid. Haven't had any international bidders for guitars yet, but I've sold a some pickups to Oz (thanks mates!) and a saxophone to Italy (grazie!)

Originally Posted by Joe-Bob

I don't think there actually is a price point.

I'm starting to think that too.

Originally Posted by KevinB

Because you're not really getting free shipping from MF or Amazon. Aren't they just figuring it into the price of the item?

In most cases, yes.

I think there are times when shipping costs for specific items outweigh the profits on those items, but due to the overall volume of business, the aggregate profit is still high enough to absorb the losses incurred by those specific items.

Originally Posted by KokoTele

Why are you comparing a loss-leader like free shipping from a big-box retailer to individuals or small retailers? Totally different economics at work, and totally different business models.

I get your point, but even if the economics are different, these different "modes of acquisition" do compete with each other, so I thought it would be interesting to compare them.

Originally Posted by Chud

I'd always love for the buyer to pay the fees unless I'm the buyer.

Me too!