Delivery Fees

Business By fl_cake_lover Updated 12 Nov 2011 , 4:08pm by sleepy20520

fl_cake_lover Posted 10 Nov 2011 , 3:55am
post #1 of 9

How do you calculate your delivery fee? A bride wants a quote to deliver her cake 56 miles away. Do I charge her for 112 miles plus an hourly rate for my time? The IRS standard mileage rate is $.51 for business. Is this what you go by? Or is this only if you have a company car? My car isn't under the business name because I use it for personal and business.

This is just one more thing among the many to becoming a business owner. Where's that darn EASY button when you need it?

8 replies
jason_kraft Posted 10 Nov 2011 , 4:55am
post #2 of 9

We charge $1/minute for deliveries based on the estimated time from Google Maps. So if it will take 75 minutes to get to the delivery location, we would charge $150.

The IRS rate of $0.51/mile is only meant to cover the actual operating cost of driving and vehicle depreciation, it's not meant to include compensation for your time.

costumeczar Posted 11 Nov 2011 , 12:01am
post #3 of 9

I do a flat fee per delivery within the general city limits. If it's going to be out of town I use a per-hour fee.

sleepy20520 Posted 11 Nov 2011 , 6:09pm
post #4 of 9

so we generally dont charge a delivery fee in town (our city isnt too huge)... but we just had an order for alot of deliveries for one company. basically doing 80 seperate orders for the clients, delivered to 80 seperate addresses in town. we advertise that we dont charge for in town deliveries, but would it be bad business to add a fee for this large order??

jason_kraft Posted 11 Nov 2011 , 6:39pm
post #5 of 9
Quote:
Originally Posted by sleepy20520

so we generally dont charge a delivery fee in town (our city isnt too huge)... but we just had an order for alot of deliveries for one company. basically doing 80 seperate orders for the clients, delivered to 80 seperate addresses in town. we advertise that we dont charge for in town deliveries, but would it be bad business to add a fee for this large order??



How spread out are the 80 orders? Hopefully not all in one day. icon_wink.gif

costumeczar Posted 11 Nov 2011 , 9:00pm
post #6 of 9
Quote:
Originally Posted by sleepy20520

so we generally dont charge a delivery fee in town (our city isnt too huge)... but we just had an order for alot of deliveries for one company. basically doing 80 seperate orders for the clients, delivered to 80 seperate addresses in town. we advertise that we dont charge for in town deliveries, but would it be bad business to add a fee for this large order??




That's an interesting question...Are you delivering cupcakes or something like that to a bunch of their clients? That can be a mess because you end up tying to find parking everywhere you go, and if you have to do them all in one day you're on a schedule of when the businesses are open.

If you were doing individual deliveries on different days and you wouldn't charge for those, I wouldn't charge for this. Even though it looks like it's a huge job the time to deliver isn't really more than it would be otherwise.

If you advertise no delivery fee that could be one reason why the business hired you, so I don't think that I'd add a delivery fee. Just make sure that you're pricing your product enough that you'll be making a good profit, because that's a huge order and you'll be REALLY tired the next day!

itsacake Posted 11 Nov 2011 , 10:31pm
post #7 of 9

Do you have a minimum order for delivery? If each of the items being delivered is over that minimum on it's own, it is as though they were ordered separately and I wouldn't charge to deliver them, but if the order overall is over the minimum and each individual item is not, I probably would charge, since the time has to be accounted for in some way.

If I didn't have a minimum for delivery, I probably wouldn't charge, but I'd institute a minimum for the future.

dwright Posted 12 Nov 2011 , 5:10am
post #8 of 9

We charge a flat fee (delivery & set-up) of $35 for all venue deliveries within a 10 mile radius and $1.00 per mile beyond that radius. Works really well for us.

sleepy20520 Posted 12 Nov 2011 , 4:08pm
post #9 of 9

well like i said our city/town isnt that big... you can drive across the whole city in 15-20 min...so we dnot charge for delviery or have a min order for delivery. basically we have a week in which they all have to be delivered to their clients. we are delivering 1 dozen cake pops to 80 diff clients....mostly their residential addresses.... im thinking we have to go withnot charging, but its just something i was thinking i should change.....but its not a common order really. usually a large order is a wedding cake that goes to one venue lol

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