I have been asked about delivery charge to take a wedding cake approx. 1hour 15 min away. I have not charged a delivery fee before because they have always been close to home. I have no idea what I should charge.
I usually charge by the mile and use the irs milege rate right now it is $.505. They calculate average fuel cost, wear and tear, and time.
If you do charge by the mile, don't forget to calculate it based on the round trip, the mileage/time back counts too. And don't forget the pita charge lol
Bear in mind the IRS reimbursement rate is calculated to the cost of the CAR .... tire wear, gas, oil, wear and tear, etc. It does NOT include payroll for the person behind the wheel (you), insurance on the vehicle, lost opportunity costs (If you're behind the wheel of a delivery van, then you're NOT in the kitchen making cakes), etc.
I charge $1.25 round trip mile if it's outside my normal delivery area.
That was business rate which was calculated for trucks and vans.
For a trip that long, my delivery fee would be the average cost of a cake. Because I'd be on the road 2.5 hours, plus possibly as much as an hour at the venue, that means I would have to take one less cake that day. So seriously, my delivery charge would be $500.
Thanks for all the information, at least now I have some idea on how to determine a charge.