High Sales Tax + Shipping=Loosing Sales...

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Discussion Overview

This thread centers around the challenges faced by Pampered Chef consultants regarding high sales tax and shipping costs, and how these factors may impact customer purchasing decisions. Participants share their personal experiences and frustrations related to these issues in various states.

Discussion Character

  • Anecdotal
  • Opinion-based
  • Exploratory

Main Points Raised

  • One participant, identifying as a consultant from Tennessee, expresses frustration over nearly 10% sales tax and increased shipping costs, noting that customers often complain or seek to combine orders to save on shipping.
  • Another participant from Florida mentions similar complaints about a 6% sales tax and taxed shipping, suggesting customers should contact their congressman about their grievances.
  • A consultant from Tennessee agrees with the frustrations regarding high sales tax and often combines orders for customers spending less than $20.
  • Several participants from New York report an 8% to 8.625% sales tax, with shipping also being taxed, and some mention combining orders to split shipping costs.
  • One participant from Alabama notes that while their town has an 8% tax, they receive few complaints, as customers are accustomed to paying for shipping due to distance from shopping centers.
  • A consultant from Louisiana shares that their parish has an 8.75% tax and that shipping is taxed, leading hosts to prefer shipping to themselves to save on sales tax.
  • Another participant humorously points out that taxes apply to various everyday items, including toilet paper, indicating a shared sentiment about pervasive taxation.

Areas of Agreement / Disagreement

Participants generally agree on the burden of high sales tax and shipping costs, with many sharing similar frustrations. However, there is no clear consensus on how to address these issues, as experiences and responses vary by location.

Contextual Notes

The discussion reflects a range of experiences across different states, highlighting the varying sales tax rates and shipping policies that consultants encounter. Participants share personal anecdotes rather than formal guidance.

Who May Find This Useful

Consultants facing similar challenges with sales tax and shipping costs may find the shared experiences and insights relevant to their own situations.

MamaChef
MamaChef
Messages
163
Anyone else experiencing this? We live in TN and have nearly a 10% sales tax in our area which kills us anyway, and then with the increases in our shipping over the last year, people either are deciding not to buy, griping about the shipping (which for the record is tons lower than some direct sales co's...I just made a So. Living at home purchase and the shipping is going to be $8!!! "but the packing for such delicate items is fabulous"....STILL!!!), or wanting to combine with 3 other people to place an order. Now, I will agree....those customers that can only make a purchase under $20 (before tax & ship) end up paying well over $20 once all is said and done...this is probably aggrivating! But don't you think they knew that they were going to be paying shipping before they even come? And have you seen how much they could be paying???? If you make the same purchase off the website or as an individual order, the lowest you're going to be paying for shipping is something like $6!

This is just a vent mostly...I've been facing this at my last 3 shows! Just wondered what the rest of you have been dealing with!
 
I get the same gripes from people here - our sales tax is 6%...and shipping is taxed in Florida and they all fuss at ME about it - I tell them to write to their congressman...
 
Mamachef,

I also live in TN and have had the same issues. The sales tax here is outrageous. Usually, if someone is spending less than $20 and they ask to be added to someone else's order I will do it.

I understand your frustration and you are right about other companies charging more for shipping.

Beth
 
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  • #4
Carolyn...our shipping is taxed here too...everything is stinkin' taxed! Good comeback though! haha! Beth...I will generally combine orders too...I'd rather combine and keep the sale that be a hard nose and lose it! :) I know of some that won't!
 
Our tax in NY is 8.625% plus they charge tax on shipping too!!! Sometimes they combine their order and split the shipping.
 
dannyzmom said:
I get the same gripes from people here - our sales tax is 6%...and shipping is taxed in Florida and they all fuss at ME about it - I tell them to write to their congressman...
Click to expand...


I blame it on Jeb Bush! That usually shuts them up!:D
 
Same here....8% where I am here in NY and yes, the shipping is taxed too! Ugh. My guess is our taxes will get higher, too. Lovely. :(
 
Woah, and I thought I had it bad. Ours is 8.3% the highest in the state I'm told, and we tax EVERYTHING, products, shipping, and food, I swear if they could figure out a way to tax us going to the bathroom in this town they would.
 
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Ours used to be 8.25%, but it was raised I think 2 years ago...we're at 9.25% and there are counties around us that are up to 9.5% on everything. It's soooooo much fun!!!! The only bonus to the outrageous tax is that we have no income tax....although it's just a matter of time before we do...state gov't has been fighting the issue for a few years now. :rolleyes:

jdavis said:
Woah, and I thought I had it bad. Ours is 8.3% the highest in the state I'm told, and we tax EVERYTHING, products, shipping, and food, I swear if they could figure out a way to tax us going to the bathroom in this town they would.
Click to expand...
 
Well, I'll complain because the tax just went DOWN in NC. So instead of an easy 7%, it's now 6.75%. This is so much more difficult to figure with a calculator and the hosts can't seem to get it. Oh well.

I, too, have people complain about shipping at times. It seems, though, in more internet-saavy crowds, I don't hear them complain. Perhaps it's because they are used to more shipping costs on on-line sites.
 
Still better than in CanadaHere in Ontario, our taxes are 14%! (The provincial one is 8% and the national one is 6%) And we just had a 1% decrease last July. To complicate things, cookbooks only have one tax applied and food items have none. I always end up making mistakes when I use a calculator (vs the laptop).

Where I feel bad is for customers who buy $20 or less. It kills me to charge them $5 for shipping so I often suggest that they combine with a friend...
 
Alabama taxes evrything too. Including income tax. My town is 8% and most of the surrounding towns are 9%. I really do not get many complaints. I think I had one this month and that is the only one I can remember. But we have to drive 90 miles to the nearest mall and people are used to have to pay shipping to get something if they really want it! Shipping is cheaper than the gas to go pick it up!
 
90 miles to the nearest mall!?!? Wow!!
 
tax or no tax...that is the question
MamaChef said:
Ours used to be 8.25%, but it was raised I think 2 years ago...we're at 9.25% and there are counties around us that are up to 9.5% on everything. It's soooooo much fun!!!! The only bonus to the outrageous tax is that we have no income tax....although it's just a matter of time before we do...state gov't has been fighting the issue for a few years now. :rolleyes:
Click to expand...


OK.....our tax is only 7% but as I read I have to think about the woman with straight hair, she wants it curly and the curly haired woman wants her straight. Down here in GA we are trying to get , what they call the fair tax, which is no income tax but taxed on everything we buy. That would bring us up to about 10% here. I guess what they say is true, we're never happy with what we have, the other side of the fence always looks greener lol

like alot of you said, I get alot of combined orders also. its the shipping not the tax, no-one here minds paying the tax they know its all about the gov't. Why is it when they see the tax its all about US, like the USPS has nothing to do with it lol ok im done fussing :D
 
I actually had a guy at a show the other night who was like "You charge TAX on this stuff?" Well yeah buddy we do..and it was only 6%..people are so strange sometimes when it comes to the actual PAYING part of the show!
 
I feel the tax and shipping pain here, too!

Louisiana charges tax on shipping.

Then, the parish I live in is 8.75%, while the Parish where most of my business comes from is 9.5%. My hosts want everything shipped to me to save on the sales tax. HO is going to want to know why all of my parties never ship to the hosts.
 
Hey Jennifer!GUESS WHAT??? WE ALL DO GET TAXED TO GO TO THE BATHROOM!
There is a tax on the toilet paper, the water bill and the sewer bill. So they definately have taxed us to go to the bathroom!
And yes, I combine orders when it makes a difference in getting or loosing a sale. The only time that hurts is when there is a special being offered for the number of orders. Like in January. The host gets the Chef's Tongs FREE with 15 orders. I had a lady who needed a Cooling rack by the end of next week and I told her to order it online. (I can't do on-line submits right now because of a few wonderful, sarcasim here, customers!) Well, I told her I would cover the shipping above $4. My bad! I had never looked at the shipping rates out there and almost died when she told me the shipping was $16. I had to give her $12 for her $13.50 order. I just lost about $10 big ones on that one! Oh well! I won't be doing that again unless the order is fairly substantial.
 
pampered1224 said:
GUESS WHAT??? WE ALL DO GET TAXED TO GO TO THE BATHROOM!
There is a tax on the toilet paper, the water bill and the sewer bill. So they definately have taxed us to go to the bathroom!
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O, I knew they would find a way, LOLOL. OK smarty pants. http://www.thesmilies.com/smilies/tongue0013.gif
 
jdavis said:
Is that bad? I thought it was normal?! LOL. I am in the same boat myself. http://www.thesmilies.com/smilies/rolleye0011.gif
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Nope hour and a half for us. We have a dinky mall on our coast with a sears (applience only) and a tini tiny JCPenny's. But for big stores (Macy's, Kohls, Nord, Target, BBB, Linens...etc) its a good 110 miles for us! I LOVE IT HERE, though...I love the coast living!!
 
jdavis said:
Is that bad? I thought it was normal?! LOL. I am in the same boat myself. http://www.thesmilies.com/smilies/rolleye0011.gif
Click to expand...

LOL. No, it's not bad at all! Just different than my area. There are MANY stores, malls, etc.. The closest is probably only 6 miles away! LOL
I find it interesting to hear about different areas of the country. :)
 
There is a so-called mall that is declining every time I do go, which isn't hardly at all any more about 45 minutes away, but to get to a real mall in Wichita, is over an hour's drive, same to Joplin, and even further to KC. So needless to say we don't go too often, lol. I like living here, just wish there were bigger things closer you know? I definately wouldn't be working in the factory that I work in now.
 
MamaChef what part of TN are you from? I'm in McNairy Co. and I have people complain all the time about taxes and shipping.
 

Frequently Asked Questions

What impact do high sales tax rates have on direct sales for Pampered Chef?

High sales tax rates can deter potential customers from making purchases, as they may feel the overall cost is too high. This can lead to reduced sales and lower revenue for consultants, especially in areas with significantly elevated tax rates.

How does shipping cost affect customer purchasing decisions?

Shipping costs can be a significant factor in a customer's decision to buy. If shipping fees are perceived as too high, customers may abandon their carts or choose not to purchase at all, which can negatively impact sales for Pampered Chef consultants.

What strategies can be implemented to mitigate the effects of high sales tax and shipping costs?

Consultants can consider offering promotions, such as free shipping on orders over a certain amount, or incorporating the sales tax into the product pricing to make it less noticeable. Additionally, providing clear communication about shipping costs and tax rates upfront can help manage customer expectations.

Are there any specific products that are more affected by high sales tax and shipping costs?

Generally, higher-priced items may be more affected by high sales tax and shipping costs, as these additional fees represent a larger percentage of the total purchase price. Lower-priced items may still be impacted, but the relative increase may not deter customers as much.

How can consultants effectively communicate the value of their products despite high sales tax and shipping?

Consultants should focus on highlighting the quality, durability, and unique features of their products. Sharing testimonials, demonstrating the products in use, and emphasizing the long-term savings or benefits can help justify the higher costs associated with sales tax and shipping.

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