How Much To Charge For Delivery?

Business By adventuregal Updated 25 Mar 2011 , 12:28am by AmysCakesNCandies

adventuregal Posted 23 Mar 2011 , 9:52pm
post #1 of 4

Hi every one!
I don't charge for cakes in the area which is all I've had up to date. Today I got a wedding inquiry for July and she wants the cupcakes to be delivered about 2 and a half hours away. How much would you all charge for some thing in that range? I've heard 1.00 per mile, but I'd like to get some opinions from here icon_biggrin.gif
Thanks!

3 replies
indydebi Posted 24 Mar 2011 , 12:16am
post #2 of 4

I charge $1.25 per round trip mile, based on mapquest's mileage. Your mileage rate needs to cover more than gas.
- It covers the deprection on your vehicle (wait until you try to trade it in and get a sucky trade in value because of high mileage due to all of your deliveries);
- oil changes, tires,
- your insurance costs (which are higher on a business vehicle with commercial auto insurance);
- lost opportunity costs (in those 5 hours that you are gone, you are NOT baking another order and making money AND/OR you are giving up going to the movies with your family);
- cost for the employee .... even if the employee is you, you will "clock in" when you load the van and "clock out" when you return, so 5 hours drive time at $10/hour = $50 JUST in "payroll" expense.

Also, don't confuse the govt reimbursement rate of (I think its) 52 cents per mile with a delivery fee. The govt does NOT tell you how much you are "allowed" to charge for delivery. The govt merely says "You can charge whatever you want and we'll give you a 52 cent per mile tax benefit on it."

Bottom line is that if they don't want to pay for your time and expense to drive 5 hours round trip to get the ckaes to them, they are more than welcome to send someone to pick them up. Cupcakes are a no brainer pick up. thumbs_up.gif

MimiFix Posted 25 Mar 2011 , 12:00am
post #3 of 4

The customer might be very upset to hear the amount for delivery. I agree with indydebi, cupcakes are very easy to transport so let them find a guest willing to pick them up. If the customer then wants to know about delivery, charge a fair amount for your time.

AmysCakesNCandies Posted 25 Mar 2011 , 12:28am
post #4 of 4

I agree cupcakes are easy for pick up so I would encourage that. As far as delivery I do free in town but for all other areas I charge by the hour, $25 per hour round trip. so a 2.5 hr delivery (5hrs round trip) would be a $125 delivery charge

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