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The Word

  • Posted : 12/08/2006
  • Name: Mac Owens
  • Subject: Increased delivery charges for Northern Ireland deliveries.

Comments:

" I would just like to check your delivery prices to Northern Ireland, I have used Scan several times in the past and have been charged £7 plus VAT (as far as I can remember) but just last week I ordered a few items and was surcharged £15. I accept that this is a Citylink charge but you have always used Citylink and I do have to say a £15 surcharge is a bit steep, the original charge was going to be (from a poor memory) £5.98 plus VAT, twice that would be acceptable but £15 is just too much. With this order I wanted a specific case which you did not do, so I had to get it elsewhere and it was delivered for £6 including VAT, which just proves what can be done.

Your prices are very good - please arrange for deliveries to be competitive as well!

Thanks

Mac "

Scan's Action

" We understand it may have come as quite a surprise for some of our long standing customers to see that many of our prices have increased for non-mainland UK. The reason for this is because we recently went through a review of our account with Citylink to balance out the pricing more fairly for our customers. Having looked into the way their pricing works and comparing that with how we charge our customers, we have discovered that most of the smaller orders (in terms of weight and volume) were not as cost effective as we'd wish to be yet we were greatly undercharging some of the larger orders and especially those going to off-shore addresses.

If you live at an off-shore address and you have seen an increase in carriage cost, this certainly does not reflect an increase of profit margin on our part...it merely means we have reviewed our pricing so that we're no longer undercharging customers. We certainly don't want to discourage anyone from ordering with us, but at the same time when you work on such tight profit margins it's not good business sense to ignore when you're making large losses in a particular area.

The upshot of these recent changes is that we can to make sure our pricing is fair and cost effective for everyone, right across the board. We realise that in isolated cases it might mean we have to put prices up for people who we have always undercharged, but in other areas where we were not as cost effective we now can be.

We appreciate that Mac has found another retailer who was able to undercut our pricing for delivery to Northern Ireland and we respect his decision. However, what we would say is that nothing is free in an industry like this where profit margins are so tight. Where one company might undercut by making a loss in one area, they would often have no choice but to make up for it in another by increasing prices or compromising some aspect of their service. We hope there is some way we can still look forward to his custom in the future and that we have not caused too many disappointments to our customers by our new pricing structure.


Roxane Wilkinson
Customer Support Manager "