Delivery Charges

Business By Prudence Updated 25 Mar 2008 , 11:36pm by leily

Prudence Posted 24 Mar 2008 , 8:10pm
post #1 of 5

Hello Fellow CCer's!

Do you charge fopr delivery? If so, how do you have it set up? After a 10- mile radius? I have to deliver a cake on Sat. that is 18 miles away and need to charge for the delivery. Help!

I tried to look this up in old posts, but it looks like they are gone... icon_cry.gif
Thanks SO much!!

4 replies
alicegop Posted 24 Mar 2008 , 8:12pm
post #2 of 5

My job reimburses between 40 and 50 cents a mile....
However, that is for gas and wear and tear... how do you figure in your time on top of that!

Prudence Posted 24 Mar 2008 , 9:17pm
post #3 of 5

Thanks so much alicegop!! That gives me a good idea...

Anyone else? Do you guys charge??

Doug Posted 24 Mar 2008 , 9:55pm
post #4 of 5
Quote:
Originally Posted by alicegop

My job reimburses between 40 and 50 cents a mile....
However, that is for gas and wear and tear... how do you figure in your time on top of that!




for the "I've got to figure it to the last penny" mind-set:

IRS 2008 rate for business miles is 50.5 cents/mile.

so a 20 mile trip would be $10.10 just for wear/tear.

now...as for time -- easy....what is your hourly rate for making a cake?

charge same for delivering (after all that is time you could be making a cake!)

so if your hourly rate is $15 and it takes 45 min to do the 20 mile trip...then that's another $9.

so we're up to $19.10 -- which rounded to next highest whole dollar makes $20.

BUT ---

for the "KISS" mindset --

Set a flat fee for delivery that covers a specific geographic area. -- Say $25 anywhere within a 20 mile radius. Then for out of area deliveries you say $25 PLUS $XX per mile round trip make that extra amount high enough to make it worth your while but NO less than what you're charging per mile inside your delivery zone.

and to further maximize your $$ for delivery -- try to schedule deliveries so it is one big trip that drops off at least 2 or more cakes, charging each the full delivery fee (they don't need to know you're delivering other cakes" --

and don't forget the most efficient route is the one that most closely approaches a being a circle in shape.

leily Posted 25 Mar 2008 , 11:36pm
post #5 of 5

OK, I had a long post with a lot of good explination and went to submit and my internet connection went down so I lost it all.

So a quick summary....

I charge $1/mile each way from my zipcode. I have it stated that "Delivery is free within first 7 miles and after that $1/mile based off of google maps from zip code ____" This lets them do a quick figure on their own or go to google and do it themselves. In my cake prices I have the first 7 miles figured in.

Also make sure that you have your time figured in correctly. I live in an area where I can avg 1mile/minute. So I am making about $30/hour for my time and any additional business expenses with having an employee. If it takes you 2 min/mile then you are only making $15 before taxes and all the other fun stuff. So make sure you take that into consideration if you charge per mile.

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