Just Curious: Gas Prices; What Do You Charge For Delivery?

Business By mom42ws Updated 10 Aug 2008 , 8:16pm by KoryAK

mom42ws Posted 7 Aug 2008 , 11:44pm
post #1 of 15

I would like to know what you all are charging clients for deliveries outside of your basic delivery area. Are you charging by the mile, and if so, what amount?

Ashley

14 replies
summernoelle Posted 7 Aug 2008 , 11:50pm
post #2 of 15

I went from $1/mile to $1.50

indydebi Posted 7 Aug 2008 , 11:53pm
post #3 of 15

$1.25 round trip mile for any drive longer than 15 minutes or 15 miles, based on mapquest.

mom42ws Posted 8 Aug 2008 , 12:03am
post #4 of 15

i've got a couple that just booked a wedding with me and their wedding is 65 miles away. i'm trying to get an idea of what i should charge them for delivery and then set up for 200 cupcakes. i don't want to bombard them with costs but i want to, at the very least, cover my time and gas expense. not really looking to make anything off the delivery fee.

indydebi Posted 8 Aug 2008 , 12:17am
post #5 of 15

If you want to cover your time, then be sure to figure it in.

If it was my order.....

65 miles x 2 (round trip) = 130 miles x $1.25/mile = 162.50

65 miles one way will take about an hour to drive, so two hours x an hourly rate (my labor rate is $25/hour ... by the time I pay the employee (and you ARE an employee so treat yourself like you have a payroll to meet to be able to pay yourself!) and the payroll taxes, and my accountant to do the payroll..... So inside that $162.50 is not just the gas ... you're paying for gas, oil, wear and tear on tires, mileage depreciation, (yeah....just wait until you try to trade in that vehicle with all those extra delivery miles!), the (commercial rate) auto insurance that you have to carry when you're functioning as a business (and comm'l ins is WAY more expensive than personal insurance!).

You're not paying just for the gas.

mom42ws Posted 8 Aug 2008 , 12:24am
post #6 of 15

WOW! indy, those are all excellent points. question about comm'l ins. - if i use the vehicle mostly/primarily for personal use is it okay that i just have that insurance even though sometimes i use it for deliveries?

indydebi Posted 8 Aug 2008 , 12:34am
post #7 of 15
Quote:
Originally Posted by mom42ws

WOW! indy, those are all excellent points. question about comm'l ins. - if i use the vehicle mostly/primarily for personal use is it okay that i just have that insurance even though sometimes i use it for deliveries?




I worked 15 years for CIGNA insurance in the personal auto and homeowner dept, with lots of insurance classes under my belt and I used to be licensed insurance agent. The underwriters view the "risk" that the car is exposed to (i.e. that THEY are exposed to since they will pay for the risk). Cars are rated on the highest risk. If my 16 year old daughter only drives my car ONE day a month, the car is still rated the same as if she drives it once a week or once a day .... because the RISK is there.

It has nothing to do with how many miles you put on the car .... it has everything to do with the exposure that the insurance company might be required to pay for. If you personally hit someone, you will, of course, pay a claim to the other party. But if you hit someone while operating a business vehicle, stats show that the other party tends to sue for a higher amount, just because it's a business (and you KNOW how we're all rolling in the dough since we own a biz!) ... ergo the insurance company is at risk for a higher claim/lawsuit.

Bottom line is check with your insurance agent. And if he tells you that you're ok with a personal policy, GET IT IN WRITING!!!!! Insurance is plain and simple contract law. And if your insurance policy "contract" only covers you for personal usage, then they will NOT pay a claim if they deem you are using the car for commercial purposes. Playing the "but he SAID.....!" thing when someone is suing you for $100,000 is not the time to try to figure it out.

Be aware ... it's really much more expensive. Give ya a for-instance. WHen we had 3 cars on a personal policy, it cost us about $900 a year. I moved the van and the Jeep to my comm'l policy and that policy alone .... for just 2 cars ... was $2200/year. Because it's a higher risk exposure.

(You may now apply for your college credit for an insurance class! icon_biggrin.gif )

poshcakedesigns Posted 8 Aug 2008 , 12:44am
post #8 of 15

I charge $1 round trip for everyone, that is unless I am going to a certain part of town for something and they want to meet me on my way but if it's out of my way I now charge for delivery.

I use to delivery free up to 15 miles but not anymore, now I charge everyone since gas has gotten so expensive.

indydebi Posted 8 Aug 2008 , 12:53am
post #9 of 15
Quote:
Originally Posted by poshcakedesigns

I charge $1 round trip for everyone, that is unless I am going to a certain part of town for something and they want to meet me on my way .....




I see a number of people who meet a client half way ... does anyone ever get stuck waiting and waiting and waiting for the client to show up? That's what would bug me ..... what if I had other cakes to delivery, or a child to pick up at day care, or another appt to get to? Just curious on how courteous (?)or inconsiderate (?) people are.

KKC Posted 8 Aug 2008 , 1:06am
post #10 of 15

Indy this makes so much sense now because I too were not really sure of what to charge. I live in Miami so I'd charge $10-15 and in Broward county I'd charge $15-20...I have so much to learn....

MichelleM77 Posted 10 Aug 2008 , 3:04am
post #11 of 15
Quote:
Originally Posted by indydebi

Quote:
Originally Posted by poshcakedesigns

I charge $1 round trip for everyone, that is unless I am going to a certain part of town for something and they want to meet me on my way .....



I see a number of people who meet a client half way ... does anyone ever get stuck waiting and waiting and waiting for the client to show up? That's what would bug me ..... what if I had other cakes to delivery, or a child to pick up at day care, or another appt to get to? Just curious on how courteous (?)or inconsiderate (?) people are.




I've done this three or four times and every time the person is waiting for me (always at a gas station!). Not that I'm late, they are just early. icon_smile.gif

indydebi Posted 10 Aug 2008 , 3:21am
post #12 of 15

Cool! I was just curious as we read so many stories about people who are hours late picking up cakes from our shop or our home.....

MichelleM77 Posted 10 Aug 2008 , 1:34pm
post #13 of 15

Since I've had good luck, I'll continue to do it until I get that person who takes advantage, and then I'll just do delivery only and charge for it! icon_smile.gif

sugarlove Posted 10 Aug 2008 , 6:46pm
post #14 of 15

I charge $65.00 per hour round trip. That covers my time or contractors time if i sub out the deliver, gas, and wear and tear.

KoryAK Posted 10 Aug 2008 , 8:16pm
post #15 of 15

$2/mile based one way for deliveries out of my town and the tiny town about 10 miles north.

See about business insurance instead of commercial or personal. When I just had one car, Allstate was able to change me to that for only about $10/month different as long as I didn't charge for deliveries. Now that I have a van just for the business, I have to have commercial. At least that one is paid off so I only have to have the liability ins.

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