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FREE DELIVERY is easy to give away with inflated prices or inferior products

When you purchase anything online, you are paying for your delivery one way or another - it is all in the market speak as to weather you are aware of this or not.

Consider the market-speak effect of the terms 'NATURAL' and its even more natural brother, "ALL" Natural"" and then its other brother is actually "100% Natural" - a hell of a lot better than the other two surely? A room full of rocking chairs is the 100% natural habitat of a long tail cat too I guess.

"PURE", "NATURAL" and, "FREE" are some of the best tools of Market-speak. Once upon a time until the ACCC prosecuted them, there were a lot of companies claiming their water was 'ORGANIC'. Funny though that water is not organic as it lacks any carbon compound which is required to be organic matter - after that spring water went down in price. How surprising!

What about FREE DELIVERY?  Well there really isn't such a thing! Any accountant will confirm that all expenses of any sale have to be covered, somehow. Accountants stated that Aussie Farmers went bust because they did not cover their costs and a lot of people got hurt because of the unsustainable ideas they tried to continue with. Delivering a product to a customer costs money and these costs are basically these; there is a portion of:

  • labour,
  • fuel,
  • vehicle running costs including maintenance,
  • cost of the depreciation of vehicle and equipment to deliver any product (e.g. wrapping, printing, stickers, labels etc)
  • packaging boxes and ice... etc

In order to provide FREE DELIVERY, vendors have to cover these costs somewhere, or else they will not stay in business long.  SO, how can businesses claim 'FREE DELIVERY', really?

Aside from the ethics issue of weather promoting a FREE DELIVERY with the inference that it costs absolutely nothing to you (think Aussie Farmers), here is the reality of how businesses must cover their FREE DELIVERY offer that you actually as a customer must pay for:

  1. They provide inferior product whilst customer pays for superior product and delivery costs are covered
  2. They provide quality product but with hight price and delivery costs are covered
  3. They provide a product at competitive price and charge customer for either part or full cost of the delivery on top of the purchase cost, and delivery costs are covered                                  

As at November 2019, a local delivery of one average size grocery box to your door costs between $10-$18 raw cost - it cost $25-$35 for the same box to deliver interstate and regional.

The truth is that to provide a quality product at a competitive price and include a free delivery will take only a few years to go out of business (like Aussie Farmers) because costs will be exceeding revenues. So to offer FREE DELIVERY, and stay in business, the only way is to sell product to you at high (inflated) price or give inferior quality product (or a bit of both) - either way, the customer is paying top dollar per 1 & 2 above.

The notion of FREE DELIVERY is a marketing exercise to create a mythical thing that covers a real thing i.e. the real cost of a delivery. It has to be paid for somewhere. And to provide FREE DELIVERY, likely means that somewhere someone is getting unethically (and unsustainably) screwed along the line such as the farmer on his pricing and or the delivery driver (by getting squeezed to sell or deliver their service with very low margins running an unprofitable business), or the supplier (risking long term business unsustainabiliy not covering costs adequately but providing it until they implode like AUSSIE FARMERS), or the customer (per the three points above). With higher volume sales delivery can become cheaper potentially, but somewhere in the business, it still has to be found from the consumer.

These are the facts - KILOMETERS AND HANDLING COST DOLLARS. So dear customer, you are paying for delivery either as a transparent cost in addition to your purchase, or you are absorbing the cost of delivery in the costs of the goods you are buying and or, in the inferior quality of the products you are receiving. So, remember this when considering the factor of free delivery as part of your decision , because there is no such thing as a 'Free Delivery'. And, a long tail cat in a room full of rocking chairs is dam nervous - that's a fact too!

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