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Deal of the Century - with one small issue

by lumbering_on
posted 09-29-2018 02:07 AM


8 replies so far

View AHuxley's profile

AHuxley

874 posts in 3683 days


#1 posted 09-29-2018 02:21 AM

Great buy!

Keep in mind while both are still high for a small parts order it is to cover the picking and packing charges. You should be able to find something at an industrial supply house that matches the threads. In the US I would use Mcmaster Carr but they also hit you hard on small order shipping.

View bruc101's profile

bruc101

1337 posts in 3903 days


#2 posted 09-29-2018 02:33 AM

Congrats on the deal.

Shipping prices seem to be getting more and more outrageous but, if I had bought that saw for your price, I would be ordering that part never looking back.

I recently ordered a few small things I needed for my shop. The shipping and handling charges were three times as much as what I paid for the items I needed, but I needed the items so, I paid the price.

Good luck with your new saw.

-- Bruce Free Plans https://traditionalwoodworking.org

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lumbering_on

578 posts in 852 days


#3 posted 09-29-2018 02:34 AM

Thanks for the info. I checked the Mcmaster Carr site, and that’s quite impressive. We have a similar company here called Acklands-Grainger, but I’m pretty sure they’re not open to the public. :(

I keep hearing that voice in my head saying “Every silver lining has a dark cloud.” :(—ok, it’s not really that bad.

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lumbering_on

578 posts in 852 days


#4 posted 09-29-2018 02:39 AM



Congrats on the deal.

Shipping prices seem to be getting more and more outrageous but, if I had bought that saw for your price, I would be ordering that part never looking back.

I recently ordered a few small things I needed for my shop. The shipping and handling charges were three times as much as what I paid for the items I needed, but I needed the items so, I paid the price.

Good luck with your new saw.

- bruc101

I’m not sure why shipping has gotten that bad, but maybe it’s the shippers trying make money on their non-Amazon accounts?

You have a point, but I was an accountant for a few years, so I have this bean-counter brain that just weighs all the costs, and is just so adverse to paying so much for shipping on a small part. I know, it’s really still a great deal…just…this…darn…bean-counter…brain…arrggghh.

View AHuxley's profile

AHuxley

874 posts in 3683 days


#5 posted 09-29-2018 03:04 AM


Shipping prices seem to be getting more and more outrageous

My family owns a business that has a small replacement parts division that ships about 10,000 orders a year, so not small but not big either. While I don’t deal with any day to day I have taken it upon myself to optimize the small parts shipping which we had lost money on for years as a customer service, but it turns out a large percentage were competitors customers just using us for cheap parts. Even streamlining and running very lean it costs us about $5.10 to ship a single 1-3 oz small part (within the US) when all the costs are actually added up. That is with a small warehouse footprint and only about 1,000 SKUs, move up to 10,000 or 100,000 SKUs and a much larger warehouse and the cost goes up as the average pick time goes up per order. Use UPS exclusively instead of USPS for light orders and there is another jump in cost, use only boxes and no envelopes and the costs make another jump. There are also constant increases in price from the shippers.

I hate paying the high price of parts shipments as much as the next guy but it isn’t usually the highway robbery it seems like from the outside.

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lumbering_on

578 posts in 852 days


#6 posted 09-29-2018 03:28 AM


Shipping prices seem to be getting more and more outrageous

My family owns a business that has a small replacement parts division that ships about 10,000 orders a year, so not small but not big either. While I don t deal with any day to day I have taken it upon myself to optimize the small parts shipping which we had lost money on for years as a customer service, but it turns out a large percentage were competitors customers just using us for cheap parts. Even streamlining and running very lean it costs us about $5.10 to ship a single 1-3 oz small part (within the US) when all the costs are actually added up. That is with a small warehouse footprint and only about 1,000 SKUs, move up to 10,000 or 100,000 SKUs and a much larger warehouse and the cost goes up as the average pick time goes up per order. Use UPS exclusively instead of USPS for light orders and there is another jump in cost, use only boxes and no envelopes and the costs make another jump. There are also constant increases in price from the shippers.

I hate paying the high price of parts shipments as much as the next guy but it isn t usually the highway robbery it seems like from the outside.

- AHuxley

Thanks for the perspective. I think it’s a lot to do with the large players who can squeeze the shipper for lower rates, which means those that don’t have the purchasing power are subsidizing those that do. For example, I can get a gun safe delivered for free with Prime. Great deal for Amazon, but the costs have to be payed for somewhere.

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AHuxley

874 posts in 3683 days


#7 posted 09-29-2018 04:01 AM



Thanks for the perspective. I think it s a lot to do with the large players who can squeeze the shipper for lower rates, which means those that don t have the purchasing power are subsidizing those that do. For example, I can get a gun safe delivered for free with Prime. Great deal for Amazon, but the costs have to be payed for somewhere.

- lumbering_on

It isn’t just actual shipping cost but likely every single overhead line item associated with shipping. Things like electricity, property taxes, employee benefit packages, printers, toner, picking tubs/carts, packing supplies, every single item will have a marginally lower cost. While they are picking from HUGE warehouses the volume is high enough that the computer generated picking lists keep the distances the pickers move optimized.

One other thing about replacement parts, a company can’t use standard retail/wholesale SKU retention formulas. In standard practice when an item’s turnover drops below a certain level a smart company clears out the product and drops the SKU. If a company wants/needs to be full service you can’t view replacement parts like this you have to maintain inventory even with low turnover and when you do finally run out you may have to reorder even if there is a high MOQ (minimum order quantity). So you may have to order 20 years worth of a part and sit on them for years before breaking even. This is one of the reasons you can’t get parts for many consumer products since parts in a supply chain end up costing near as much as a whole new item.

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lumbering_on

578 posts in 852 days


#8 posted 09-29-2018 04:12 AM

Now, you’re reminding me why I didn’t do cost accounting, and stuck with going the CPA route. I actually did a stint in an auto parts manufacturing company, and had to do a lot of the costing for parts. Fortunately, I didn’t have to worry about the supply chain as that is something that operations dealt with, but I was part of the team responsible for ensuring the formulas used to associate the costs inputs to all the different parts we produced were as accurate as possible.

Small wonder so many accountant like to drink.

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