Delivery Policy....does This Sound Reasonable?

Business By MelissaS953 Updated 5 Aug 2011 , 2:09am by OhMyGanache

MelissaS953 Posted 1 Aug 2011 , 8:16pm
post #1 of 12

Working on my delivery policy and wasn't sure if this sounded reasonable?

Delivery is offered on all wedding cakes and cakes with a minimum order of $100. Orders for delivery must be paid in full. Free delivery is offered within a ten mile radius. For all other locations the fee is a flat $5 plus .51 a mile.

11 replies
jason_kraft Posted 1 Aug 2011 , 8:23pm
post #2 of 12

.51 per mile seems a little low (unless it's round trip). We charge $1/minute round trip for delivery based on the Google Maps drive time estimate.

ranae5463 Posted 1 Aug 2011 , 8:50pm
post #3 of 12

I work in government during the day and the 51 cent per mile was the IRS allowance for businesses. However on July 1 this year it is temporarily being raised to 55 1/2 cents per mile, probably until January 1, when their new recommendations come out. Perhaps that is where the basis is for her mileage, not sure? My father owns a motor repair shop and his delivery fee is free up t o 10 miles and has a fee as mentioned by the OP for miles over 10. HTH

cakesbycathy Posted 1 Aug 2011 , 8:51pm
post #4 of 12

I offer free delivery within my town only.

I charge $1.50 per mile for delivery for everything else.

jason_kraft Posted 1 Aug 2011 , 8:55pm
post #5 of 12

Don't forget that the delivery charge has to both cover the true cost of driving (wear and tear, gas, liability, etc) and compensate you for your time.

ConfectionsCC Posted 1 Aug 2011 , 9:05pm
post #6 of 12

I charge $25 for a 20 mile radius, and $1 per mile after that. That is to cover not just the wear on my car/ gas...but also the time it takes me to deliver and set up.

cai0311 Posted 1 Aug 2011 , 9:10pm
post #7 of 12

I don't think you are charging enough for the delivery fee. I charge $1.75/mile round trip with a minimum of $30. I don't care if I only have to carry the cake to my back yard, there is a $30 fee.

The fee helps pay for my time. The farther I have to drive, the less time I am at home doing something either for the business or my husband. If I have to deliver a cake 1 hour away (common for me) I spend about 2.5-3 hours away from my home. During that time I could making another cake, delivering 2 cake closer to home (double the money then) or getting some well needed R&R. I can't do those when delivering a cake, so I charge a fee to cover the time I can't make cakes to make money.

leah_s Posted 1 Aug 2011 , 9:14pm
post #8 of 12

My minimum delivery fee is $50. 5 blocks or 15 miles. It's my time, mostly. Also I'm charging for my expertise is case anything goes wrong and has to be repaired onsite. You're NOT charging just for wear and tear on your vehicle, but your skill and problem solving abilities.

SweetDelites Posted 1 Aug 2011 , 9:41pm
post #9 of 12

I never thought about a fee, I guess I should. Don't know where to start.
Some of my cakes were more than 15 miles away. Someone tell me where to start.

cai0311 Posted 2 Aug 2011 , 5:12pm
post #10 of 12

I never thought about a fee, I guess I should. Don't know where to start.
Some of my cakes were more than 15 miles away. Someone tell me where to start.

Where to start? How much do you need to make per hour to make your time worth it? I charge a minimum of $30 or $1.75/mile (each way) whichever is greater. If I have to drive 5 miles to the venue and 5 miles home for a total of 10 miles the client would be billed $30 (10 miles x $1.75 = $17.50 so the $30 is greater). If I have to drive 15 miles to the venue and then 15 miles home the client is charged $52.50 (30 miles x $1.75).

Stephy42088 Posted 2 Aug 2011 , 5:25pm
post #11 of 12

I also charge $50, regardless of where i'm going. its all about time, its a lot of time and trouble to be running around delivering small orders so i just charge $50 flat regardless of how big or small

OhMyGanache Posted 5 Aug 2011 , 2:09am
post #12 of 12

I don't go by mileage because 20 miles on city streets and 20 miles on the freeway take vastly different amounts of time. I Mapquest the distance and go by what they claim the time should take and then charge $50/hr. (both ways) - so a 30 minute trip takes me 30 minutes to get back, and they pay for the full hour. A 15 min. trip (30 min. round trip) would cost $25 which is my minimum delivery charge.

Quote by @%username% on %date%