Hello!
I have a dilemma.
My business will be selling premium loose leaf tea. Now, when you hear premium loose leaf tea, most people automatically assume it's a luxury. However, most people will also have, in their minds, a figure that they'll pay for tea (an EXTREMELY tiny market will have the disposable income to WANT to pay $100+/lb of tea, and catering to that crowd will require expertise belonging to tea experts and sommeliers.)
Here's the rub.
Since we are not an online tea store, we cannot offer the "free shipping above $50" deal (which would make sense for us).
We are basically a one product, Tea of the Month, service.
If we were to compete in price with the giants, Adagio + David'sTea + Teavana, we would have to say no free shipping. On the other hand, if we provide free shipping (or even subsidized shipping, where we would charge a flat rate and just absorb a portion) the profit would be so miniscule that it wouldn't be worth proceeding with the business.
Should we run with high price + free shipping and just see if we catch any traction, or should we go straight to competitive pricing but no free shipping?
Thanks,
ALSL
I have a dilemma.
My business will be selling premium loose leaf tea. Now, when you hear premium loose leaf tea, most people automatically assume it's a luxury. However, most people will also have, in their minds, a figure that they'll pay for tea (an EXTREMELY tiny market will have the disposable income to WANT to pay $100+/lb of tea, and catering to that crowd will require expertise belonging to tea experts and sommeliers.)
Here's the rub.
Since we are not an online tea store, we cannot offer the "free shipping above $50" deal (which would make sense for us).
We are basically a one product, Tea of the Month, service.
If we were to compete in price with the giants, Adagio + David'sTea + Teavana, we would have to say no free shipping. On the other hand, if we provide free shipping (or even subsidized shipping, where we would charge a flat rate and just absorb a portion) the profit would be so miniscule that it wouldn't be worth proceeding with the business.
Should we run with high price + free shipping and just see if we catch any traction, or should we go straight to competitive pricing but no free shipping?
Thanks,
ALSL
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