With the price of gas soaring like it is, do you charge more for delivery? How do you figure out what to charge for delivery to begine with? I'm just starting out and need to figure this out so any help would be greatly appreciated. Thank you.
I charge $50, but most of my deliveries are 5 miles or less. It's a standard charge with me.
Gas is actually only about 20% of the true cost of driving on a per-mile basis, see the link below for a breakdown. This does not include your hourly wage, which should be included in the delivery charge. When using the price of gas for these calculations I recommend using a $6/gal figure.
We charge $1/minute (round trip) for deliveries, we are in a major metro area so mileage alone is not an accurate picture of how long we will be on the road.
I charge $50.00 within 10 miles excluding downtown (I typically have to pay a second person to come with me for downtown deliveries so that's automatic $75.00) then 75.00 for within 20 miles and $2.50 per mile roundtrip for anything over 20 miles.
1. Drive less. Make a driving plan.
Big delivery companies do, you can, too, especially if you make a lot deliveries or have a lot of appointments. Cluster these deliveries and appointments so you're not backtracking or going out on different days if possible. Plus consider attaching routine errands to other trips.
2. Go digital. What can you do digitally rather than physically sending paper, products or people?
Consider using a free chat with video to review or consult with a customer, check out ooVoo.com
Can you create a digital portfolio instead of printed ones? Send invoices, bills, proposals electronically instead of by mail? Hold Web conferences instead of traveling to meet in-person, unless it's a tasting of course? With high gas prices, the cost of using or developing digital alternatives is even more affordable.
4. Change working and shopping hours. Sitting in rush hour traffic uses up extra fuel; try to avoid prime-time traffic if possible.
5. Use the phone. Take care of routine business with customers over the phone instead of in-person if possible or just by e-mail. That doesn't mean you should stop doing business face to face but perhaps eliminate very routine visits.
6. Keep your car in shape. Keep your tires inflated to the recommended pressure; check your spark plugs.
Look in this business you must use your car to delivery products, but if you can cut cost in other areas, every little bit will help.
Even small improvements in gas mileage make a difference. And drive slower. You use less gas when you stick to the speed limit. (That's a hard one for me!)
FYI, you should cite your source when you copy and paste info written by someone else.
Jason you are absolutely correct...thank you.
Thanks for all the tips. I will certainly be checking some of these out.