The Psychology of Free Shipping
December 16th, 2009An art dealer friend recently disclosed that his trump card when closing deals with clients is to offer free shipping. More often than not, he said, this finalized the sale and allowed the buyer to depart feeling he or she had bargained well and struck a good deal. Further, this was true across the price spectrum of the art involved and no matter what the length of the negotiation process. It was free shipping or free local delivery & installation that sealed the bargain. This is not what a shipping company wants to hear.
Compounding the horror, “free shipping” among online retailers has reached epidemic proportions and in fact has come to seem the norm. We feel shortchanged these days if we have to pay, or pay much, for shipping. It seems our birthright NOT to pay for shipping, not after we have just forked out for the thing/object/gadget itself. The giddy days of online sellers getting away with charging $8.99 to ship a $10 item seem lost in the quaint cyberpast.
So having promised the client the impossible, and feeling entitled to discounted shipping no matter what the commodity, the gallery or dealer then calls us seeking to send the artwork as cheaply as possible. We’ve been asked to put $30,000 artworks in cardboard boxes and ship them on UPS. Which, I hasten to add, we won’t do. It also explains why galleries often consign the job of arranging shipping to the lowest status employee who is newest on the job. Shipping is the last and least glamorous step in the dealer to customer transfer of title and custody. Basically, it’s a bore and a chore and, they would like us to think, it subtracts from rather than augments the bottom line. It’s the necessary evil mop up after the master has done his thing; hold your nose and dial the shipper.
But the truth is “free shipping” as anyone willing to reflect can probably deduce, is actually factored into the cost of the “thing” and so is not really free. We choose to perceive it as free because we want to feel like we are getting something for nothing, even when we know we aren’t. Art buyers, are you listening?
It would hardly be a sensible business model for art sellers to routinely “eat” shipping costs,. More likely they are factoring shipping into the cost and then, post sale, simply trying to maximize their profits by pressuring shippers to provide the most economical possible service. In this way everyone is happy except, well, me. I am stuck trying to persuade that new person at the gallery front desk that they really, really, really need to part with some actual money to protect their art in transit. That’s me, the bad guy spoiling everyone’s spoils.
Adding to the dilemma is the fact that the gallery typically wants the artwork off the premises and in the hands/on the wall of the customer as soon as possible before the glow of acquisition fades. So now we have a request for fast service, often a custom pickup at the gallery, plus expedited packing and shipping, plus custom delivery and installation all to be done on the cheap. Even after a couple of martinis, I can’t see a way to make that happen.
In a perfect world, everyone would recognize the service companies like ours provide and be willing to pay fair value for it. Santa, are you listening? In the meantime I continue my lonely battle against the tide of “free shipping” – with just a short time out this holiday season to transfer the items in my cart to the checkout window and collect my free 2-day shipping. Which they still call my “free 2 day shipping” even after charging my credit card $79 for yearly access to this privilege. Such a deal.
Betsy Dorfman
Tags: art buyers, art dealer, art in transit, closing deals, delivery, discounted shipping, expedited packing, free shipping, front desk, galleries, gallery, Installation, local delivery, online sellers, price spectrum, shipping company, trump card