By B15m1lah. Chair. At Friday, June 29th 2018, 06:48:41 AM.
How is it that some church chair dealers can advertise and offer "Free Shipping" on the chairs they sell, at least to some areas of the country? After all, trucking rates nationally have skyrocketed in recent years with high fuel costs and increasing government regulation and expensive equipment all contributing to this trend. When a company advertises that they provide free shipping on church chairs purchased from them to many states, and subsidized shipping to most other states, HOW are they able to do so? Are we really to believe that there are those who enjoy incurring all the expenses associated with loading and unloading, and maintaining trucks, and paying $5.00 a gallon for diesel fuel in a truck that gets 5 miles a gallon, so that a church can receive FREE SHIPPING on their chairs?
Fleshing this out further, let's say a company advertises free shipping on their church chairs once a certain quantity of chairs are purchased to select geographical regions of the country. One of their chairs they sell for essentially $33.00 each, once there are a minimum of 100 chairs, purchased as a part of the order and also include "free shipping" for those chairs to about 20 different states. In this case they may purchase those chairs from a Chinese factory for about $13.00 a chair. They bring them to this country, warehouse them, sell them, and then deliver them. Their costs for all of these items is perhaps another $13.00 or so per chair. They then sell them for $33.00 a chair and all of their costs are covered and they make a nice profit. All through the process though they continue to state they are offering "free shipping".
Let's start with the basic and obvious premise that for any business to survive, they must take in more dollars over a course of time than they expend. This is certainly true for a company that provides church chairs as well. There is an overall cost to obtaining chairs (either through manufacturing them or importing them) and then delivering them to the end user (churches across the country). The company must receive for their chairs an amount of money from their customers that will cover all of their expenses.