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Overseas Shipping

02/14/2010 12:20 PM

I am in the process of re starting up an old family business. 30 years ago when the business was first running, we never ever thought of overseas sales. We were just barely able to keep up with the sales from USA stateside orders anyway.

But this time we are looking more global because we have had many requests from all places around the globe for a sale. (isn't the internet sometimes neat!?) You can see my clock at the web page below, and read the history, it's a fun and interesting read.

But what I am in the need of assistance of is shipping overseas.

The Box only weighs 7 pounds, and is relitively small, 16" wide by 10" deep and 12" tall.

But when I check with the usual carriers like UPS or DHL the shipping costs from say the USA to Europe is terrible! It almost costs as much as the clock, and sometimes even more!

SAo I am looking for suggestions on how to ship boxes of that size worldwide.

Here is the clocks web site

http://www.idle-tyme.com

enjoy

Joe Mayenschein

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Guru

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#1

Re: Overseas Shipping

02/14/2010 12:58 PM

Cool clocks! Very clever. I think I like the new version.

I don't have any help. There may be shippers who send things by container ship, but it probably takes forever. And your clocks mostly go to private parties so that can mean higher costs.

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#2

Re: Overseas Shipping

02/14/2010 5:19 PM

Neat clock! I once owned one, but it was in plastic rather than wood. I don't know if it was produced by the original company, licensed to another manufacturer, or just ripped off. The bowling ball version was really cool.

If you are selling these one-by-one over the Internet, that makes you ship your orders individually, which leads to the expense you describe. How about establishing a few overseas distributors and shipping in palletized/crated loads? Whatever shippers you may have been using thus far, I would try to discuss with them various ways to consolidate into larger shipments.

I like the revival of wood construction. It looks way better, and there isn't a huge volume of wood involved. Good luck with this!

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#3
In reply to #2

Re: Overseas Shipping

02/14/2010 5:35 PM

Yes, it was a license on our patent to allow the plastic company to make the cheap version. It was a high priced item in those days, If you take the prices it sold for in 1980 and adjusted for inflation, the price today would be between 400 and 500 dollars. So we let the plastic version become so more people can afford one. We always felt it was similar in the comparison of a Quarter Pounder with cheese at Mc Donalds, and a nice porterhouse at a 5 star steakhouse. Joe Mayenschein

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Guru

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#4

Re: Overseas Shipping

02/14/2010 9:59 PM

Sometimes it simply costs what it costs and takes what it takes.

If you use companies like DHL or UPS, which do airfreight, the weight is significant only up to a point as there is only so much room in the hold of a plane.

The carriers are forced to consider not just the weight, but the size of the package.

Your customers want what they buy right quick typically.

You might figure out what your projected sales on different continents are likely to be, and then ship to distribution centers by the rock bottom way, and then final ship from there for fast.

Of course warehousing isn't free so you may not gain at all.

You may be forced to build some factories in your markets overseas if there really is no other way to overcome the facts of ceiling price, and shipping costs.

You might also consider having a packaging expert figure out how to package the clocks so they take up less space.

Another option would be to see if the common carriers like airlines could carry the stuff like baggage, and hand off to ground of either baggage delivery agents that deliver lost bags, post, or back to ground delivery services like UPS, in the new markets using coordinated tracking and routing systems that while maybe a bit more cumbersome, or a day, or a couple of days slower, would still satisfy your customers.

P.S. I remember discovering at one time that movie theaters got the prints to show by bus, as it was cheapest. The prints showed up at the bus station, and the theater sent somebody to go get them. This sort of thing influenced my post.

As said, sometimes it just costs what it costs.

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#5
In reply to #4

Re: Overseas Shipping

02/14/2010 11:21 PM

Yes UPS and DHL are out of the question, they both want well over 200 dollars, and 7 to 10 days.

Funny and as amazing as this is, but the USPS yes the United States Postal Service of all groups is the cheapest! $70 dollars. But even at 70 thats still 30% of the cost!

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Associate

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#6
In reply to #5

Re: Overseas Shipping

02/15/2010 1:19 AM

niegther asign distribuotrs nor make factories in abroad. This is art work and not consumer product (do not ever never make plastic one). The market of this limited to those who love to make properties of art work. The prices are cheap!!!! and you just mention your price Ex-Work and you will see you market growing fast interested buyer will not look to the shipping cost. I think you just concentrate on the production and marketing via internet and expo. In case you decide to asign distributors let me yours in Saudi arabia.

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#7
In reply to #5

Re: Overseas Shipping

02/15/2010 4:27 AM

My experience with USPS for packages (in my case into Spain) so far was good. Here, and maybe in more european countries, the post offices collect the duties and tax when the package is picked up. If countries where this is the case, USPS is definitely the best option.

My experience in Germany was that I was called by the customs office (always ask for phone numbers of your customers to include it in the paperwork!) and had to go with the invoice to get the package released. UPS, DHL, Fedex and other couriers automatically do the customs clearance for the buyer and charge an administation fee for it (here in Spain this is a flat 50 € = 68 USD) on top of the applicable value added tax and duties. This can be a pain on top of the high shipping rate when the value of the item is relatively low.

I would give the customer the choice until you have some experience with the countries that you are sending to (ask for customer feedback) and try to establish your standard method.

In the long run, you might want to look for someone acting as stocking distributor in Europe,preferrably in a country with good shipping rates to the rest of Europe. I assume that you will have fans soon. I saw in the forum thread you have potential distributor in Saudi Arabia already :-)

Very nice clocks, good luck with your international project !

P.S.: It might be a good idea to offer a version without the gloss laquer but an oiled wood type of clearly non-tropical certified origin. We europeans love that.

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#10
In reply to #7

Re: Overseas Shipping

02/15/2010 10:53 AM

My experience with USPS for packages (in my case into Spain) so far was good. Here, and maybe in more european countries, the post offices collect the duties and tax when the package is picked up. If countries where this is the case, USPS is definitely the best option.

++++++++

Now see I have only dealt with a Canadian shipment before, and so much for NAFTA! Even a direct neighbor country like Canada, the duties and taxes added another $80 dollars to the price of the clock. TERRIBLE!!

++++++++

My experience in Germany was that I was called by the customs office (always ask for phone numbers of your customers to include it in the paperwork!)

+++++++++++++

For all the overseas shipments, Or may as well for all shipments may as well ask for it.

But how does the shipper have access to the phone number?

+++++++++++

and had to go with the invoice to get the package released. UPS, DHL, Fedex and other couriers automatically do the customs clearance for the buyer and charge an administation fee for it (here in Spain this is a flat 50 € = 68 USD) on top of the applicable value added tax and duties. This can be a pain on top of the high shipping rate when the value of the item is relatively low.

++++++++++

Wow! by the time you via DHL or UPS add in the shipping costs, admin fees, youre already above the price of the clock, and you still diddn't add the tax and duties yet!

This is surely a learning experience! Is America that much different? All the products we import, of comparable values, I can not imagine these costs being added to those products.

+++++++++

I would give the customer the choice until you have some experience with the countries that you are sending to (ask for customer feedback) and try to establish your standard method.

+++++++

Please explain what you mean here. thank you.

+++++++++

In the long run, you might want to look for someone acting as stocking distributor in Europe,preferrably in a country with good shipping rates to the rest of Europe. I assume that you will have fans soon. I saw in the forum thread you have potential distributor in Saudi Arabia already :-)

++++++++++

Now how does that work the stocking distributor. Yes I know what they are, but how does the duties and taxes and all that work doing it that way?

+++++++++

Very nice clocks, good luck with your international project !

P.S.: It might be a good idea to offer a version without the gloss laquer but an oiled wood type of clearly non-tropical certified origin. We europeans love that.

++++++++

All the woods we use are native northern American hardwoods, Walnut, Oak, Maple, Cherry etc. As far as finish, I can offer any type of finish. from the high gloss (seems to be what the americans like) to semi gloss, to flat. to as you say an like linseed oil finish. all possible, or even bare wood is possible.

Joe Mayenschein

http://www.idle-tyme.com

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#15
In reply to #10

Re: Overseas Shipping

02/16/2010 12:15 PM

You mentioned NAFTA? Are your clocks shipped along with a valid NAFTA certificate? that would render them duty free and there would only be 5% GST (goods and service tax) added. Oh and if you sent them by courier they will; charge customs brokerage, handeling, and anything else they can make think up.

Duty rates for clocks in Canada (non-NAFTA) run 11% to 14%. Importing clocks and watches into the USA is weird. Contrary to WCO (World Customs Organization) rules you must declare the value of the case, the movement, and the battery separately and each part attracts a different rate of duty, plus a fixed amount on the entire clock.

see http://www.usitc.gov/publications/docs/tata/hts/bychapter/1000c91.pdf

This thread kinda makes me laugh a bit. So many times I see replies on CR4 saying "If you don't know what you are doing, call in a trained specialist in that field of engineering" Well welcome to my world folks. International shipping and customs is not an area for those untrained in red-tape, buraucracy, documentation and hoop-jumping.

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#11
In reply to #5

Re: Overseas Shipping

02/15/2010 3:13 PM

USPS is in my experience the best choice. All shipping is expensive these days. USPS service is good and they are more economical than Fedex or UPS.

For shipping to Canada, don't use UPS - they tack on huge brokerage fees that are billed to your customer over and above the prepaid shipping. Really over the top.

I don't know about shipping to Europe - If you want to make lots of sales in Europe, you would be better off finding a distributor there and shipping in bulk by container.

There is one other possibility that might suit you - google "drop shipping" and see if that's useful.

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#8

Re: Overseas Shipping

02/15/2010 7:21 AM

You can send as Post parcel but weight should not increase by limits specified by Postal Dept. We used to import small parcels by Post which worked to be reasonable. If you can make a container load then only it will be cheaper to send by sea.

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#9

Re: Overseas Shipping

02/15/2010 9:29 AM

I did this based on following

1. Bulk surface shipment and storage in USA of the product I offer from India

2. Do sales from USA

3. Ship from USA warehouse using ground, second day and overnight based on customer needs and requirements.

During laying down the foundation we used this business model and can help you our also of you need to organize the same when there is mutual interest. If you are interested you can always contact me

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#12

Re: Overseas Shipping

02/16/2010 12:06 AM

try Concordia International Freight. we use them for air freight, much less expensive than DHL, Fed X, etc.

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#13

Re: Overseas Shipping

02/16/2010 12:00 PM

Well well, here is a question in MY field of expertise. I have been working in the freight and customs business for over 30 yrs now and can maybe shed some light on your dilema.

First advice .....stay away from UPS, FEDEX, and other "courier" companies who's sole expertise is getting a package from point A to point B.

What you would really like is a full service freight forwarder with a regular service to your place of destination. They will consolidate your small volume load with many others in the same situation until they have a full 40' container and then ship that. You pay a much lower freight rate and also get help preparing the proper customs papers required in the country of delivery. Countries have different requirenents. It has been said in this thread that couriers will customs clear the goods for you. Beware of that service. The couriers are only interested in getting the parcel delivered and will clear it with little or no information. Customs work done like this can come back and bite you in the a$$ as much as four years later. Just for example in you case, clocks, UPS, FEDEX etc will accept documentation that says simpley "clocks".

Any destination country will require at least the following. Does it have a .....

  1. Watch movement,
  2. Synchronous motor or
  3. Other type of movement.

Does it have an alarm?

Is it electrical?

Those are the questions every country will have, each individual country may have their own on top of those.

I see those commercials on TV for "documentless shipping" and they make me cringe. In what world do the people who make those ads live? No country considers the UPS or FEDEX online document to be acceptable for a customs declaration of commercial goods.

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#14
In reply to #13

Re: Overseas Shipping

02/16/2010 12:12 PM

apothicus,

Please drop me a note directly, I would like to discuss this more with you and not cloog up the board here.

Joe

nss@mwt.net

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#16

Re: Overseas Shipping

02/17/2010 10:06 PM

I used to stare at the plastic version at McDades's for hours and hours.. .. but it was a couple months of allowance..

Good to see it back, but it's still more than my allowance..

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