Reasoning for shipping policy

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joroscoe

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I noticed you have some livestock in Rhinelander. I live in Chicago. According to FedEx, packages shipped from Rhinelander to Chicago are guaranteed to be delivered in Chicago the next day (one-day shipping zone). I also know that LiveAquaria.com is unwilling to ship ground under any circumstance. Could you please provide me with LiveAquaria's reasoning for this policy? Although I understand that the actual savings from local shipments are probably passed on to LiveAquaria's other consumers, I don't know if I think it is fair that I must continue to pay extra every time I buy something to subsidize other customers' shipping costs. Additionally, I certainly would order more frequently from LiveAquaria if I was paying actual shipping costs, and I think other current LiveAquaria customers that live in one-day shipping zones would as well. Thank you very much for considering my question!
 
joroscoe,

Thank you for posting your concerns with regards to our shipping options. We have contacted FedEx, and while they offer a one-day air ground option (limited) for supply orders, they do not ship live animals via this method. Federal Express overnight air is the only service they offer with a live animal option. We appreciate all suggestions and will continue to explore all of our shipping options to ensure that our fish arrive in the healthiest possible condition.


Cassie Z.
Drs. Foster and Smith
LiveAquaria
 
Thank you very much for your response! However, do you mean Fedex puts these packages on a plane from Wisconsin to Chicago? What if I ordered and lived in Rhinelander? Certainly they would not put the item on a plane.
 
joroscoe,

Thank you for your prompt response as well. Customers who live in, or are visiting, the Rhinelander area can pick up their Diver’s Den order directly from our retail store. If you are going to be in the area within two days of placing your order please PM us your order information and we can arrange a direct pick up for you. All other Live Aquaria orders are sent, by FedEx overnight delivery service to our customers.

Kris W.
LiveAquaria Supervisor
Drs. Foster and Smith
 
joroscoe,

Thank you for your response. Our main concern is always for the health and
the well being of the specimens we offer. The reason we use FedEx one day air Service is because this is the only service which offers a live animals option. FedEx Ground one day ground service does not offer this option and they are unable to ship any live items. Federal Express is a very reliable shipper and we strive to provide 100 % customer satisfaction. If you have additional questions about our shipping options, or would like additional clarification, please call us at 1-800-337-3699, and one of our friendly LiveAquaria agents would be happy to help.


Cassie Z.
Drs. Foster and Smith
LiveAquaria
 
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Thank you for this nice discussion. A little known fact is that Drs. Foster and Smith and especially LiveAquaria loses money on it's shipping. This is not the case on short distance orders or packages that are extra lightweight and small.

The point is "AT THE END OF EVERY DAY, WE COLLECT LESS SHIPPING THAN WE PAY OUT TO THE SHIPPERS ". We actually ship packages at a loss. That is especially the case in our LiveAquaria.com division where every package is large in size and heavy in weight. In LiveAquaria alone , we lost over $300,000.00 in shipping fees in 2006,-- Thanks to high fuel costs and surcharges.

Please understand that I am EXPLAINING,-- not complaining.

PLEASE READ

LiveAquaria.com was not intended to be a money making scheme but rather our labor of love and contribution to the hobby. I have never been shy about asking for help in the way of orders as there are no dues to be a friend and supporter of LiveAquaria's fish and coral cartel. If you keep ordering that will give us the buying power to purchase the elite of livestock and increase the supply lines, therefore offering even more.

LIVEAQUARIA.COM is YOUR voice to the industry and has replaced the older concepts such as AMDA, which never was, or will become, an industry leader to represent the hobbyist.

LIVEAQUARIA.COM and I will represent your industry political issues and it will not cost you a dime. All I ask is your business support--- NO DUES. Please spread the word and concept to fellow hobbyists.

Thank you and I will continue working for the hobbyist, that is my mission.

Race Foster
DrsFosterSmith.com
LiveAquaria.com
 
At some point, your organization did a cost-benefit analysis. That analysis found that the cost you incur from charging consumers below market value for shipping would be offset by the profit gained from an increase in orders. In other words, yes you are losing money overall on shipping, but if you charged consumers more for shipping, then you would probably have less overall orders. LiveAquaria.com specifically markets its "low" shipping rates on its website. It follows that LiveAquaria.com thinks that its shipping rates attract consumers. So focusing on your shipping loss only presents half the issue.

Moreover, high fuel costs and surcharges are obstacles all vendors face; LiveAquaria.com does not exclusively feel the harm. Some vendors chose to charge consumers actual shipping cost. LiveAquaria.com does not.

Please understand that I am EXPLAINING, --not complaining.

I never implied that LiveAquaria.com was a "money making scheme." I merely expressed my assumption that LiveAquaria.com partly subsidizes the cost of bigger/ distant destination / heavier orders by charging "local" customers higher than actual shipping costs, and my opinion that I felt this was unfair. This opinion does not require the inference (nor do I intend the inference) that LiveAquaria.com is "pocketing" that money. As I stated in my original post, LiveAquaria.com passes this added benefit onto its other consumers.

I feel safe in assuming that LiveAquaria.com has the noblest of motives for entering the business market. However, it is not merely a "labor of love and contribution to the hobby." A much more realistic construction is that it is part business, part hobby, part politics.

Finally, I am glad that I am not paying LiveAquaria.com dues to lobby on my behalf. Frankly, I would be offended if I was asked to. What other industry overtly charges consumers a fee for lobbying? Certainly, consumers usually do assume lobbying costs, through the vehicle of marginal increases in goods and services pricing.

My specific question was: what is the reasoning behind the shipping policy? After several responses where LiveAquaria.com avoided answering my direct question, you have admitted that LiveAquaria.com does not lose money on "short distance orders or packages that are extra lightweight and small." Implicitly, you have given me my answer. LiveAquaria.com made a decision to charge local and small customers over market price on shipping so that they can offer below market price shipping for distant and large customers. What would be the possible reason for prioritizing distant and large consumers over local and small consumers? As I stated, allowing local consumers to pay actual shipping costs is likely to increase your amount of local orders. However, apparently this model does not eliminate as much of the cost of distant, bigger orders as charging local consumers above market price.

Thank you for helping me determine LiveAquaria's reasoning myself.

I want to say that I am a current LiveAquaria.com consumer, that I intend on continuing to buy from LiveAquaria.com, and that I have always been satisfied with LiveAquaria's quality and level of service. I am sorry if you take offense to this post, but unfortunately LiveAquaria.com appeared reluctant to answer my direct question on this occasion.
 
they stated that FedEx will not ship live animals any way other then over night air. what more do you want. FedEX will not ship animals anyway other then overnight air. That is pretty simple I think.
 
I would tend to disagree that they did not answer the question. They stated that the only way that FedEx will ship live animals is their overnight air delivery.

They could probably ship another method for locals but that would leave them totally responsible for the package and its contents. By using the shipping method that FedEx offers for the shipping of live animals that puts the responsibility of the package and its contents on FedEx and to that end LiveAquaria.com has some recourse on lost livestock due to a shipping mishap.

Live Aquaria is a business and as such in todays world a business must sometimes do what is necessary and not what they would like to do to cover their butts so that they can continue to provide the service and product that they have to offer. This seems to me to be one of those times.

I would agree that I would place orders with them more frequently if the shiping charge was less money but it is what it is and they have to do what is necessary for them to continue to do business.

Jimmy
 
Well maybe this is a question better suited to Fedex then, in which case I apologize if my question is misdirected. I guess its sort of tough swallowing the fact that FedEx is going to charge anyone significantly more for an advance method of shipment, and then turn around and ship it ground anyways. Of course, I realize that this is a tough pill that both the vendor and the consumer have to swallow. Thank you.
 
I also don't see the point of this? They are not allowed to use ground due to the shipper's request.. I thought that was illustrated by the first response clearly. Why the need too pick at their intentions as a company ?

Indeed there are vendors who are currently charging no shipping dues at this present time but that is their form of business.. In the past Liveaquaria has also offered such. But currently if you are a local consumer to their store they are giving you the option of picking up your order. As to why they don't offer free shipping over a certain order minimum is beyond me. Perhaps the winter season has higher livestock losses..


By the way just because you live near the facility does not imply a simple trip to your front door. On the contrary I would reccomend you take a look at this tracking data another individual who is local to the store posted.

http://www.fedex.com/Tracking?action=track&tracknumbers=918977301901

Here is the thread it came from.

http://www.reefcentral.com/forums/showthread.php?s=&threadid=1063392


So simply traveling from RHINELANDER WI to GRAND VIEW WI the package had to travel to TN and MN. So you see the shipper is doing a great deal of work to route the package. A great deal of uneeded work yes... But Live Aquaria has no control over that. They are shipping and following the shippers stds and regulations. Maybe some day they will have the influence to make local Live deliveries be Via ground or 2day air for locals..

At the end of the day they have the right to charge what they want. As do other companies. I pay the shipping and work with them as opposed to dealing with another company which may ship free but have poor Livestock or Gaurntees.

To have every delivery price upon checkout renderded by weight will be difficult to create as the filling of water will vary greatly so a std price eliminates this I would assume. The type of shipping you seem to want sounds nice as it would generate the shipping price by Zip code upon checkout. But then the weight would still be a issue to consider. IT is a shame you can't obtain your local order via cheaper services but that is a FED Ex decision who is probably trying to prevent special interest groups from getting annoyed at what they may feel is inhumane shipping practices.
 
As I previously stated, I apologize if my question is misdirected at LiveAquaria.com, rather than to Fedex.

If a package sent locally actually does leave the local area to return to the local area, than that is good reasoning for the shipping policy (regardless of whose policy it is). If they can use their shipping policy as a point in discussions with other interest groups, I also think that is good reasoning.

I really think it is going to do more harm than good to address the issue of their intentions. I prefer to say what I said in the post that I trust they have the noblest intentions and leave it at that.
 
Well, not all of the animals ship from Rhinelander, in fact the vast majority do not. I believe only divers den items do and the rest ship from the west coast. It would be a major process problem to attempt to minimize cost of shipping to semi-locals AND support the guarantee program that they do given that FEDEX will not ship live animals ground. I happen to live semi-locally yet I always opt for priority overnight because the FEDEX internal process works differently for this type of delivery. Remember that if you buy divers den and items shipped from the west coats, LiveAquaria ALWAYS loses money as they subsidize the second shippping cost.
 
A short time back we implemented a small shipping fee for the Diver's Den portion of a mixed order. In other words, if an order has fish that ship from California and fish ( or coral ) that also ship from Wisconsin, we do assess a 14.99 additional shipping fee to help offset the costs associated with two packages, originating from two states. We do not charge box or packing material fees. Even with this, we still lose money on FedEx shipping fees and will continue to do so. For 2007 we will lose approximately $30,000.00 per month in LiveAquaria.com alone-- on shipping collected vs. the actual shipping that we pay the shippers.
I might add here that we do not attempt to recoup the lost shipping by increasing the fish and coral margin. On a fully loaded "Profit and Loss" I operate LiveAquaria at a loss to break even. This has been for six years. We work on less than a 50% product margin and as I stated prior, I am content doing this as long as the customers support me.

I hope this helps and thank you for the comments.

Race
 
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Some of you have asked " Why would you be content operating LiveAquaria as a break even financial entity". Here is why. First and foremost I am a veterinarian with a keen interest in the Industry behind the Aquarium Hobby. The operating of LiveAquaria.com as the developing " fish and coral cartel " is a hobby for me and I enjoy it. Additionally, it helps support our core business which is Animal Health.
When I entered the Industry Behind The Hobby about six years ago I found it full of snakes, and snakes do not belong in an aquarium. As a marketing strategy and a way to flush the snakes from the rocks I think it best to destroy the traditional infrastructure so that both the industry and the hobby may recover and survive. Case in point: AMDA, the American Marinelife Dealers Association would not let me participate as a member because I believe in your right as an aquarium owner to have fish and coral sent directly to your door rather than me tanking it in my retail store and making you drive to pick it up. Direct delivery with minimal acclimation is the best for the health of the livestock and generally the cheapest for the hobbyist. We should not band together as retailers to fight off dropshipping. Again, Dropshipping and Aquaculture facilities are the future, not the barrier. I have proven that over and over. I encourage all retailers to develop a web site and join in. The hobby wants and deserves it.


There currently is no voice to represent the hobbyist other than LiveAquaria.com and the Reef Clubs. I will continue to ask your support so that the LIVEAQUARIA.COM CARTEL may grow and secure even a greater supply of the best fish and coral.

As I mentioned, I am very much for the retailer as well as the aquaculturist and dropshipper. It takes all of us to make up an industry to supply you, the customer.

Hopefully this helps all of my customers appreciate my political motives. I will work for you without the sole intent of profiteering,---- it's my hobby too. I am passionate about this. That is why on another forum they correctly referred to me as "One Passionate Madman". I will accept the title with honor and charge forward with the customers interest at heart.

Race Foster, D.V.M.

P.S. I wrote this to answer your questions so that you could better understand my business motives. I ask that it remain just that and not be debated on this forum. Thank you for the courtesy.
 
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Thank You Everyone,
I have been asked to clarify what exactly is the LiveAquaria.com Fish and Coral Cartel. The term was applied to us years ago when we purchased Flying Fish Express. Cartel implies a monopolistic group of similar organizations. For us we own and operate a retail store, we dropship and we aquaculture. Of course we are not really a monopoly and never will be. We simply utilize multiple channels of distribution in order to serve our customers.

What we do is whatever it takes to secure the best show fish and corals that land on American soil. Additionally we are constantly securing more and more supply lines overseas. This takes volume and again is why I appreciate your help in the way of orders.

Here is how we get the best fish and corals.

First, there is not one vendor that will read this that will not vouch for the fact that we pay all of our bills on time , every time. I am talking a 24 year history here. And I mean not one vendor.

Secondly, my livestock buyer, Kevin Kohen is perhaps the most honest person that I have ever worked with. So much so that he has an unlimited financial budget to purchase ALL of the quality fish and coral that arrive in the U.S. Naturally, we cannot get ALL of the fish and coral but each month we obtain more and more and we pay cash. If need be we will pay more than the list price to secure fish and corals for our customers. We do not as a matter of routine ask vendors for discounts as we do not want discount quality fish and corals. I believe that over 50% of the fish and corals that come into the U.S. are not fit for my guarantee or my customers. Any vendor reading this knows how serious we are about quality. Hopefully you as the hobbyist appreciates this fact.

Thirdly, we use approximately 15 distributors, wholesalers and aquaculture facilities to secure our supply. If need be, we offer a premium price so that the fish and coral will not be sent elsewhere. That is how Kevin secured an estimated 90 % of the Gem Tangs that came into the United States in 2006. I am proud of the fact that these rare fish went to the my customers. This is why we are called "The Fish Cartel "

As you can see from reading other posts in this forum, Kevin is increasingly being depended on to find the rarest of the best for the individual hobbyist. He is the only person in the United States with the knowledge, supply connections and the money to get these fish and corals for you on a consistent basis. Additionally, he is trustworthy and will not buy the multitude of available substandard fish and coral. He will only purchase the best for you. If you are in doubt, please read Kevin's track record on our forum.

Lastly, you have my word that we will exhaust all legal means, financial or otherwise to get you the best fish and coral. Every specimen that we sell is guaranteed to live in your tank and be as you expected or I will give all of your money back,100%. Please see my history on this forum. Serving you is how I enjoy this great hobby.

I hope that you are getting to know me better,

Thanks, Race Foster
 
"One Passionate Madman"

I prefer AQUATIC SANTA!

Just to add to what you said, Kevin has been a big help to me in answering my questions and concerns regarding some of the more advanced aspects of Reefkeeping. I am glad that if I don't find an answer on the other forums I can always come here to get one, even if the topic may not always pertain directly to a sale. You all have gone out of your way to spread knowledge irrespective of a sale or purchase.

In addition, I am glad that you have taken such initiative towards looking into the future and the potential complications that can ensue. I think we all sometimes take the ease in which we are able to attain these creatures for granted, but as you have stated there are groups who abhor what we do or at least wish to regulate it which is something we all have to consider for there to be a bright future ahead amidst all of that.

They say good help is hard to find and I think that is because all the good help works for you!! Best customer service I ever had, never any confusion or fighting, just simply helpful solutions. Most importantly honestly and a will to make things right.
 
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