Delivery Fee Question...

Business By melmar02 Updated 21 Jun 2010 , 11:45pm by costumeczar

melmar02 Posted 21 Jun 2010 , 9:20pm
post #1 of 5

So I was typing up my prospective contract and I got to the delivery section. A lot of the posts I have found on delivery fees say you charge the IRS limit of 0.50 per mile. I don't understand - that's the limit for deductable costs, the IRS isn't telling you how much you can charge to deliver a cake, right? 50 cents may account for depriciation on the vehicle, but it certainly doesn't account for my time. I would think I need to charge more than that.

I used to sell furniture and we would charge a flat fee for delivery within a certain radius of the warehouse - the farther from the warehouse the fee would go up of course. Why wouldn't we charge like that for cake delivery as well? I haven't done the math so please excuse my VERY random fee amounts here, but something like...

0-10 miles from cake shop = $50.00 delivery and set up fee
11-20 miles from cake shop = $75.00 delivery and set up fee
21-30 miles from cake shop = $100.00 and so on...

Am I missing something? How do you determine your delivery fees, and do you see any issues with me charging the way I have listed above?

TIA

4 replies
johnson6ofus Posted 21 Jun 2010 , 9:27pm
post #2 of 5

I think most charge a flat rate fee for delivery and set up, and then add extra for "venues more than ____ miles from our location".

Some consider local deliveries "included" as the cost of doing business and selling the cake (like cake boards).

It's all in how you want to market your services.

PS. I would think it unfair to add $25 if I happen to be between 10-11 miles. icon_eek.gif . As a consumer, I find the flat rate fees, plus mileage (if venue is far) best.

melmar02 Posted 21 Jun 2010 , 10:07pm
post #3 of 5

Thanks for the response! I think we're on the same page. The posts about only charging .50 per mile is just what stuck with me (and I know that won't pay for my time!).

I wasn't really considering adding $25 for .1 mile I just had to get the general idea of what was in my head down. thumbs_up.gif

indydebi Posted 21 Jun 2010 , 10:58pm
post #4 of 5

Agree that the IRS reimbursement is just a tax break .... not a hard-n-fast "rule" about how much you can charge. I see a lot of posts on here where people are very confused on that issue.

I charged $1.25/round trip mile based on mapquest.

costumeczar Posted 21 Jun 2010 , 11:45pm
post #5 of 5
Quote:
Originally Posted by melmar02

Thanks for the response! I think we're on the same page. The posts about only charging .50 per mile is just what stuck with me (and I know that won't pay for my time!).

I wasn't really considering adding $25 for .1 mile I just had to get the general idea of what was in my head down. thumbs_up.gif




There's a lot of bad pricing advice online. There are a lot of people on here and other boards who are pricing things so low, you just know they have no idea of their actual costs. You're right about using the IRS guideline not making sense, especially since it's not meant to be a delivery fee! thumbs_up.gif

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