How do people afford to post things of any value?!

[sallysqueak]

Hi

As mentioned in my other thread, we're looking at starting a business building custom pc's and selling online.

My latest stumbling block is postage!

To post a pc worth £2500 and have it insured, couriers want around £130. If there is ever a fault with the pc, having it shipped backwards and forwards so we can repair it under warranty could get very expensive. I've been racking my brains and Googling all afternoon trying to find an insurance product which insures 'Goods in transit', but not as a courier, as a business sending goods through a courier.

I was thinking perhaps this may work out a bit cheaper overall?

Does anyone have any ideas or company names to try? There's got a be a cheaper alternative with all these companies offering free delivery! How do they do it?!

The item's not being insured for the full value each time is not an option. Companies like Myhermes won't insure PC's at all when sending them!

Thanks

 

[fisicx]

There's got a be a cheaper alternative with all these companies offering free delivery!

It's not free delivery. There has never been free delivery. What they mean is delivery is included in the price.

So just charge £2630 for the PC and your problem is solved.

 

[sallysqueak]

Well, good point. But the worry comes when they need to use the warranty. I presume I have to pay for them to send it to me for repair, and then pay to send it back to them. That's £260 a time!

Hence me wondering whether I can insure with an independent company somehow?

 

[MikeJ]

The insurance company will make money. Therefore it's no cheaper.

As a general rule, only insure things you can't afford to replace, or that you are legally required to. Anything else isn't worth it.

 

[FuturePro]

It depends on the margin you are making and how many units you intend to sell. You should use the best of breed parcel providers, then lost items will be rare. Its essential that your packaging and address labeling is excellent too. Plus the packaging must be non branded. Then self insure.
However if you are selling with a high margin and low numbers then you may need to consider hand delivery but obviously that very expensive.
Returns can be paid for by the sender too.

 

[tsubibo]

PC's are a little more temperamental than other things. A little bump during transport might loosen up a few contacts and it will not readily start-up. How about setting up a little help desk/center. So people can call you and you can troubleshoot what is the problem before they send it back for warranty issues.

 

[JamiQ's]

I would have a look at getting your own separate Goods In Transit insurance policy.

 

[paulears]

I was hoping for an answer. I sent two grands worth of lighting kit in proper flight cases and didn't insure them, taking the risk. Tnt smashed them to pieces and charged me 40 to bring the broken items back. They told me I rejected the offered insurance so basically tough! I've given up selling this kind of thing because the cost eats into the margin. It's disgusting they charge you to deliver but accept no responsibility for looking after it!

 

[DontAsk]

I would have a look at getting your own separate Goods In Transit insurance policy.

In all the quotes I have had recently (newly incorporated business) it was included in (or at least an add-on to) normal business insurance policies.

 

[FuturePro]

Hi Sally, How are you getting on with your business idea? Is this something you are going to run with. Or are the insurance / damage issues too much of a hurdle.