Reader Holland asks:
Gateway is advertising “free shipping,” but you have to pay a $20 “handling charge.” At least they’re upfront that the free shipping isn’t really free, but how can they get away with calling it free when it still costs $20?
Well, Holland, we guess they were just hoping that their potential customers weren’t too bright. Ya know?
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There should be an ordering fee, an ordering processing fee, a parts manufacturing fee, a building fee, a boxing fee, a packing peanuts fee, a receipt fee, a tape fee AND a handling fee.
Or maybe they could just include in the cost of the computer BECAUSE THOSE THINGS CAN’T CHANGE.
@spinachdip: Well some guy with a Marketing degree was told to discount the laptop $75, since technology depreciates, and they saw a huge opportunity. Consumers eat up free shipping.
As soon as you find a CEO that will actually eat shipping costs, you let me know. I will be a lifetime customer.
It’s marketing, its competition. It’s built into their margin. I have written accounting software before. I have written software that you enter in your cost, and the margin you want, and it will tweak ways to get that.
You can also write inventory software, and put shelf lifes on items, that depreciate a percent. Free shipping is another way to liquidate. They also have deals with UPS/FedEx. They’re paying next to nothing for shipping. Those carriers bid for their partnership.
So many factors that go into it. But I assure you, you pay for it.
@Bladefist: You’re just arguing semantics and nobody with half a brain thinks Gateway is taking a loss. I get what you’re saying, but you’re just trying to be cute and rephrasing shit people already understand.
@spinachdip: uhh okay. Maybe you understand, but not everyone.
Man I get attacked no matter what I say.
@Bladefist:
I believe my friend is trying to say that if the new bottom line price is less than the old bottom line price, you’re getting a discount, comparatively speaking. However costs are allocated before the bottom line are inconsequential.
Handling exists so customer can’t say “but I can ship it for cheaper, you’re ripping me off.” I can charge handling for what it costs to pack and take it to the post office. They still get “at cost” shipping, and a low item price.
@ffmariners: Exactly. I’ve seen things on tv all the time that said “S&H” meaning shipping AND handling, but there’s a such thing as them being separate and somehow people don’t get it.
If regular shipping and handling is $50, then this is ‘okay.’ A bit odd, but ‘okay.’ Shipping and handling is different…just like how some free things have a ‘processing’ fee.
But if the laptop was cheaper last week and now the retail price aborbed the shipping…it ain’t free. Dell did this ALL the time when I was comparison shopping for a laptop years ago for college.
Checked all the prices on home and small business, and then when they had “Free Shipping” the prices of the Laptops were slightly ($20-35) higher. Scam? You betcha. Illegal? Good luck on that one…..