Delivery Charge For Speciality Cakes
Business By sugarcheryl Updated 3 Sep 2008 , 6:47pm by ziggytarheel
I know this question has probably been asked so bear with me please but do you charge for those cakes and is it the same as a wedding cake?
You bet.. if I deliver a cake.. they pay for that service.. I don't care what kind of cake it is. It takes the same gas and the same time.. they pay the same price.
You bet.. if I deliver a cake.. they pay for that service.. I don't care what kind of cake it is. It takes the same gas and the same time.. they pay the same price.
Exactly. I can't figure why it would be a different delivery price just because they called it a birthday cake instead of a wedding or groom's cake. 
Same amount of gas ... same amount of time, which means same amount of payroll ... same delivery fee.
I don't charge for delivery within my town. I live in the center of town so it's only 4-5 miles in any direction to deliver. However, any delivery outside town limits is 50 cents/mile according to mapquest directions.
I delivered a $82.50 "1st birthday" cake today to the next town over, and door to door was 10 miles, so dlvry was an addt'l. $5. She then tipped me $5 when I got there, which was nice!
It costs me 19 cents per mile to gas up my minivan at a $3.57/gallon. Even at $4/gallon, it'll only cost me 22 cents per mile. The rest is for what I consider "wear and tear".
$2 per mile round trip with a $25 minimum charge. It's more than just the gas.. it's my time as well. 
You've got a good point, Jeanne. Maybe I should be charging more based on the wear-n-tear of ME! 
I will say that if you are within 10 minutes of me I might forgo the charge.. unless you are a pain in my arse.. 
Shoot. Yes I did. Thanks, leahs, for the reminder that the job isn't done just cause the cake has a new home!
KoryAK, Yes it's around that right now. and we have a grocery store that gives us gas coupons when we shop...10 cents off gas @ Irving/Blue Canoe stations for every $50 we spend on groceries. With a family of 5, I rack up around 40 cents off gas every week!
Sorry for the hi-jack...I'm glad I learned something simple yet important on this thread. Going to change the wording on my website now...to ROUNDTRIP! 
$2 per mile round trip with a $25 minimum charge. It's more than just the gas.. it's my time as well.
Exactly.
This is a great example of where you have to think like a business.
If you had to pay an employee to deliver this cake, you'd have to pay them from the time they clocked in at your shop, loaded the cake, drove to the client's home, dropped off the cake, drove back to your shop, and clocked out. PLUS gas and wear-n-tear. PLUS what is referred to as "lost opportunity cost" .... while that employee (or you) is in the van, they are NOT in the kitchen, filling and order or taking an order.
It's not just the gas ... it's the whole gammit of legitimate business expenses / costs.
$2 per mile round trip with a $25 minimum charge. It's more than just the gas.. it's my time as well.
Exactly.
This is a great example of where you have to think like a business.
If you had to pay an employee to deliver this cake, you'd have to pay them from the time they clocked in at your shop, loaded the cake, drove to the client's home, dropped off the cake, drove back to your shop, and clocked out. PLUS gas and wear-n-tear. PLUS what is referred to as "lost opportunity cost" .... while that employee (or you) is in the van, they are NOT in the kitchen, filling and order or taking an order.
It's not just the gas ... it's the whole gammit of legitimate business expenses / costs.
So how do you pay the employee? Do you just continue to pay them by the hour or do they get a certain cut of the delivery charge? Do you have a delivery truck/van or do they use their own car? I know it's a lot of questions but I want to know how I should approach this issue when the time comes.
So how do you pay the employee? Do you just continue to pay them by the hour or do they get a certain cut of the delivery charge? Do you have a delivery truck/van or do they use their own car? I know it's a lot of questions but I want to know how I should approach this issue when the time comes.
Yes, they are paid by the hour. The pay to cover their hourly wage is included in the delivery charge. I have a delivery van, but if they use their own car (rare), I reimburse them for gas when they submit an expense form documenting their mileage on their personal car for business use. When I have 2-4 folks working a catering, I ask one person to drive (carpool) to the event and I also pay for their gas to and from the event (gosh, I'm a great guy to work for!).
So how do you pay the employee? Do you just continue to pay them by the hour or do they get a certain cut of the delivery charge? Do you have a delivery truck/van or do they use their own car? I know it's a lot of questions but I want to know how I should approach this issue when the time comes.
Yes, they are paid by the hour. The pay to cover their hourly wage is included in the delivery charge. I have a delivery van, but if they use their own car (rare), I reimburse them for gas when they submit an expense form documenting their mileage on their personal car for business use. When I have 2-4 folks working a catering, I ask one person to drive (carpool) to the event and I also pay for their gas to and from the event (gosh, I'm a great guy to work for!).
Yes you are..........I remember a long time back when I worked for a Cookie Bouquet.....I remember the delivery driver only got paid the delivery fee but they were very low charges ($5 locally, $10 next town over...etc.) so he would have to drive to work pick up the bouquet, delivery it and then keep $5.........horrible. I remember him complaining all the time how he spent more in gas than what he was making. Poor guy..........yet he continued to work there
We pay the fee for delivery to the person who does the delivery. Delivering cakes is not an easy task. It deserves to get paid well.
Edna
I completely agree. Talk about some of the most stressful moments I have ever had to endure. Everytime is like a rollercoaster of emotions. 
We pay the fee for delivery to the person who does the delivery. Delivering cakes is not an easy task. It deserves to get paid well.
Edna
Then you'll be happy to know that I pay WAY more than minimum wage.... WAY more! 
Yep I charge the same regardless of the occasion. Gas is the same no matter what type of cake.
I have a delivery van, but if they use their own car (rare), I reimburse them for gas when they submit an expense form documenting their mileage on their personal car for business use. When I have 2-4 folks working a catering, I ask one person to drive (carpool) to the event and I also pay for their gas to and from the event (gosh, I'm a great guy to work for!).
I'm sure you do, but just in case anyone else doesn't....
Please check with your insurance agent to be sure you are properly insured for your employee to drive his own vehicle while making a delivery for your business. The coverages could vary from state to state, but it is really important to have the proper coverage for this. Yes, they must have their own insurance for their vehicle, but this is a coverage you carry to cover your interests if he or she is involved in an accident in this situation.
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