I was just poking around MarcoSpecialties, and for kicks I thought I'd see what they wanted to ship a rubber kit for my Firepower to Peterborough.  As you'd guess, an outrageous $25USD.  

Even though many have gone before me, I thought "What the hell, I'm going to write them a letter" and I wrote a very polite email, asking about their shipping policies, given the actual cost of shipping.  I got a very polite response that shipping was based on 'weight, size, and postal code."  I wrote back again, extremely politely, about how if their shipping rates were truly based on 'weight, size, and postal code' the charge would be around $4 or $5USD.  An hour later, I get another response, saying that she talked to her manager, and they've decided to 'cut me a deal' and will send me the rubber kit for 15USD.  

So they're either realized that they are indeed losing business because of absolutely whacked shipping rates, or the downturn in the economy has them rethinking that any business is at least business.  I mean, hey, I was looking at a $14 item, and they're suddenly willing to bend a little?  I'm half tempted to order the kit, even though it's still too much, because maybe they'll start doing that more often and shipping might become reasonable.

Royal rumble over on KLOV last night about "Shipping to Canadians", where I got into the thick of it.

Most US sellers (Private or otherwise) don't bother with looking into alternative shipping methods. They often go with 1 method, and it's often an overpriced flat rate method they've used to ship before that makes things simple for them, and a PITA for out of country buyers.
I had someone telling me USPS told them it would cost them $17 to ship a DVD to someone here. Not a chance! Turns out the guy was passing around the flat rate box that had made the rounds inside the US, and went with that very same WAY TOO BIG box, to ship it to Canada.

I bought an Aero Fighters PCB and Marquee from a seller in North Carolina where shipping cost $18 USD, another seller asked that I pay $35 shipping from New York! I fail to see how a set of rubbers would cost even what these guys have quoted you.
They're using a preset flat rate box most like, that is more than big enough, through someone like UPS I bet. Get ready for the brokerage reaming up the hoop on receipt.

I've made it my own personal policy, to force a US seller to work amicably with me on shipping options that I KNOW are available, or I just won't buy from them. US sellers don't seem to realize the shipping options available to them, and just take the first overpriced option the shipping company tells them there is. These shipping companies are out to make money, of course they're going to do that!

Buy your rubber kit at the pinball resource, the best in my opinion. http://www.pbresource.com/pfdroptar.htm#Gottlieb

Quoted from McMean

So they're either realized that they are indeed losing business because of absolutely whacked shipping rates, or the downturn in the economy has them rethinking that any business is at least business.  

probably a combination of all three... the drawback with the post office (if you don't have the software to generate the shipping labels) is that you have to go down to the post office in person. Busy stores just don't have the time (nor are the few sales to whacky canucks worth their effort) to visit the post office.
Whereas everything else, the courier comes to pick up.. so maybe now with some down time and not as many orders, they have time to go to the post office or will bite a bit of the courier bullet to make a sale go through.

Even when I use USPS site to tell the seller how to ship and what I should pay I often find they end up again paying considerably less than the site calculates when I see the postage applied to the package on arrival. The whole thing is confusing at best but in general I would say we as Canadians end up giving sellers more than it actually costs to ship 9 out of 10 times to ensure the package makes it.

I'm just tired of having to pay for a money order.  Yes, he charges fair shipping, but the cost of a money order negates the better shipping.  Oh, that and he'll yell at me on the phone and tell me Firepower is a piece of junk.

Daniel

Quoted from HAL-9OOO

Buy your rubber kit at the pinball resource, the best in my opinion. http://www.pbresource.com/pfdroptar.htm#Gottlieb

Since I am in the process of setting up an online store, I was thinking about setting up a bulk buying scheme to get items that can't be sourced locally.  It would involve collecting orders over time and then making a larger purchase (hopefully at a discount) and then offsetting the shipping cost that way (because a faster, more costly method of shipping could be used amortized over a larger number of items).  The biggest issue there is collecting cohesive enough "group" orders to make everyone happy.  It's an idea anyway.

Quoted from McMean

Oh, that and he'll yell at me on the phone and tell me Firepower is a piece of junk.

Yeah he's a real treat to deal with. Good thing he isn't in retail where he has to deal with the public and the customer is always right.

Just demonstates the level of B.S. us collectors are willing to deal with for the sake of the hobby.

I ordered from Marco... the shipping is the same for one part and 20 parts! Always a fix price so I think it's a trick to make people buy more  in one order... well it's what I did   Only need two parts, but ordered 12 because it was the same shipping.

I compared the same order with other store (Pinball life, BAA, Marco, Pinball Resource): -+2$ so it doesn't make a big diffrence where you order multiple items.  I never place an one item order.

Quoted from websherpa

Since I am in the process of setting up an online store, I was thinking about setting up a bulk buying scheme to get items that can't be sourced locally.  It would involve collecting orders over time and then making a larger purchase (hopefully at a discount) and then offsetting the shipping cost that way (because a faster, more costly method of shipping could be used amortized over a larger number of items).  The biggest issue there is collecting cohesive enough "group" orders to make everyone happy.  It's an idea anyway.

You see, I never understood the concept of "a rubber kit". I buy a LOT of ALL of them so I'm never looking for a missing one.  Usually at Allentown so bye bye shipping ( hey gas is cheap again )

and your trying to run a "no risk" business model... you HAVE to have some inventory to start with.

Best of luck

Phil's right. The limited benefit of bulking together and waiting for an order is going to amount to saving a few $ on shipping. People are going to just bite the bullet and order it from where you can find inventory.

Case in point. Starburst will bulk together orders for Happ Controls. Only on one occaision was it beneficial for me to use this method of supply and that was that they were responsible for getting a monitor here in one piece. In all other instances I order from someone directly who had inventory.

So to me the business model of no inventory and trying to offer a service really does not work.

To be a fully stocking distrubutor costs millions i.e. Marco, Bay or Illinois. There is discussion on the street given the current economic situation whether all of them will survive the downturn.

To be anything less than a fully stocked distributor you have to bring in common items, buy in enough bulk to still have profit margin and then be ready to ship in short order. The only benefit you may have to offer the customer is reduced shipping costs and reduced border times. This can quickly be offset by higher costs or not having that one additional item that will require them to still incur the shipping costs to get it from a stocking distributor. So to get the order you have to be less expensive with all delivered costs in to the extent they are willing to double order. Not a good model to start with unless your brother owns the parts manufacturing company and gives you the stuff.

The only last area to pursue is a niche market. I.e. distribute for Rottendog in Canada, or carry odd colour rubber etc. This only works if someone is willing to offer you exclusive rights to a territory for taking on their oddball product and promoting it for them. The problem still lies in the globalization issues of being able to order outside your territory.

End of the day is Phil is 100% right IMHO. You have to be willing to lay out huge amounts of money to buy in sufficient volumes to inventory the product. Given the scale of the Canadian economy and the limited market pinball has here. I just don't see it happening.

Best case in the current economy, if you really had your heart set on getting into the distribution business is to hope one of the distributors goes into receivership and you can obtain their inventory for pennies on the dollar. (Still hundreds of thousands if not millions I would assume) Chances are if this were to occur though the inventory would be picked up by another distributor as they would be willing to pay slightly more for it knowing they have an established market.

Quoted from Mrhide

and your trying to run a "no risk" business model... you HAVE to have some inventory to start with.

Best of luck

Thanks I appreciate what you're thinking, but of course I already have inventory building. It's a very, very narrow market so the risk is exceedingly high and the rewards exceedingly low. I'm really just doing it to fill in some cash flow around my other businesses.