Better prices for shipping
We've been wrangling with shipping rates for the past few weeks. It's been a real head-scratcher. As consumers we're all used to a world where free shipping for anything is built into the price. As a small business, we know that there are limitations to that.
Our shipping rates
Spend more than £25.00 and 2nd Class shipping is FREE
Spend more than £15.00 (and less than £25.00) and 2nd Class shipping will cost just £1.50
Spend less than £15.00 and 2nd Class shipping will cost £2.95 (our cost price)
When we offer shipping at a reduced rate, it's paid for by us. Royal Mail don't offer discounts on bulk shipping (certainly not at our output levels) because they don't need to. They're the one-stop shop for shipping in this country, and so they don't have to.
So "free" means free to you, not free to us.
We're happy to make it easier to get our coffee to you if it makes business sense. Without digging into the numbers too much: if you were to buy a single bag from us then we will lose money on that bag if shipping is free, so we can't do it. We are looking into single bag subscriptions, so please bear with us.
But when you buy more than one bag (inevitable, to get above £15 per order) it starts to become viable for us to discount shipping. The more you buy, the more viable it is for us to discount shipping to zero.
So that's why it gets cheaper when your order is £15, and cheapest when it's £25 or above.
Discounting and shipping
This will have a whole different blogpost of its own in due course, but we want to be transparent with what we do and so it's important to explain the relationship between discounting and shipping. What follows isn't a moan, but an explanation which I hope will answer some questions before they come up.
Reduced shipping is a discount in itself. For a £25 order it's about 12%. That comes straight out of our profit, and enters into the question of "How long can we stay in business?"
It is therefore going to be rare for us to offer discounts on both shipping and on our range of coffees.
(Feel free to switch off here - I'm doing maths)
For example, if we give a 15% discount on our coffee, then to be at £25.00 exactly it would be £29.40 worth of coffee. You would be getting £4.40 plus £2.95 shipping costs off, which means our costs increase by a total of £7.35 on that order. That's a lot.
(Back in the room...)
Other companies manage it, it's true. But those companies are huge by comparison. If you're really bored one day, find a company that's offering a discount on both shipping and their entire range and look them up on Companies House. I bet their turnover is either hundreds of thousands or millions. Ours... isn't.