Delivery Fees

Business By DentalSlave Updated 20 Feb 2012 , 2:34pm by costumeczar

DentalSlave Posted 31 Jan 2012 , 7:55pm
post #1 of 14

Hi to everyone, I am new to the site and needs some help. I have a small online business, cakes, cupcakes, cheesecakes. I have a wedding cupcake tower to do and it will need to be delivered about 125 miles away. I was dicussing this with my husband and we just can't agree. Do you charge by the mile? if so how to come up with the number and would you charge for both ways? I think there should be a delivery and set up fee, also should that be seperate from the cake fee or done all together.
Any help I can get would be appricitated. icon_biggrin.gif
Thanks in advance, also I am in Tennessee if that make any difference.
Tami

13 replies
msthang1224 Posted 31 Jan 2012 , 8:10pm
post #2 of 14

Hi,

I don't charge by ther mile for delivery BUT, I do have a limit of areas?how far i will deliver. I charge a base price for all deliveries but if it's outside of my area or what i consider far then I up the charge on the delivery to compensate for time and gas.
My delivery charge and setup charge are seperate from my actual charge for the cake.

HTH

DentalSlave Posted 31 Jan 2012 , 8:39pm
post #3 of 14
Quote:
Originally Posted by msthang1224

Hi,

I don't charge by ther mile for delivery BUT, I do have a limit of areas?how far i will deliver. I charge a base price for all deliveries but if it's outside of my area or what i consider far then I up the charge on the delivery to compensate for time and gas.
My delivery charge and setup charge are seperate from my actual charge for the cake.

HTH




Okay can I ask what your base price is and if or when you up charge how are you coming up with that number. Thanks again

jason_kraft Posted 31 Jan 2012 , 8:56pm
post #4 of 14

We charge $1/minute for delivery (based on the Google Maps estimate) and setup, so for an order that required driving 4 hours round trip with 30 minutes of setup we would charge an additional $270.

This includes waiting time if we arrive at the agreed-upon time and either the customer or the venue is not ready. If we arrive early, the clock doesn't start until the delivery time in the contract.

jgifford Posted 31 Jan 2012 , 8:57pm
post #5 of 14

I think the norm for folks here on CC is $1.00 per mile - ROUND TRIP - per MapQuest distances. A set-up fee would be separate if you choose to charge one. So that would be $250 for delivery only.

kakeladi Posted 31 Jan 2012 , 9:15pm
post #6 of 14

I differ slightly icon_wink.gif
The average decorator does NOT want anyone else handling their cakes - especially for delivery &/or set up. To me that should be included in the cost of the cake - not an extra charge. You know how to handle cakes, average joe does not! So, set up fee NO, delivery out of the norm, yes.
A delivery of 125 miles is *way* beyond normal. Definitely charge at least $1 per mile round trip.

jason_kraft Posted 31 Jan 2012 , 9:25pm
post #7 of 14
Quote:
Originally Posted by kakeladi

The average decorator does NOT want anyone else handling their cakes - especially for delivery &/or set up. To me that should be included in the cost of the cake - not an extra charge. You know how to handle cakes, average joe does not!



That's a good point, but you should still make sure you are compensated for your setup time by building that cost into the per-serving price (e.g. an extra 25-50 cents per serving over and above what you would otherwise charge).

It also depends on what your competition is doing...if everyone else charges for setup then you don't have to worry about losing business because of the setup fee, but if you bundle the setup cost into your price it may result in customers perceiving you as too expensive, since the per-serving price is the most prominent cost.

DentalSlave Posted 31 Jan 2012 , 10:50pm
post #8 of 14

Wow, thank you guys so much. there is lots of good info and most everyone seems to agree. My husband was very firm on you charge round trip and yes this is very far away. I hate to admit it but he said I should charge $1.00 per mile there and back. I wanted to see what the norm was. Thanks again!
Tami

KoryAK Posted 1 Feb 2012 , 12:35am
post #9 of 14

I charge $3 mile one way and no set up fees (ever). Or $1.50/mile both ways, same difference. (local delivery is free for weddings and $20 for non-weddings)

I'm also in AK and gas is currently $3.70/gallon.

AmysCakesNCandies Posted 1 Feb 2012 , 2:16am
post #10 of 14

I include delivery/ set up in the price of my cake (limited delivery area) for deliveries outside that area I charge $45 per hour round trip.

ajwonka Posted 12 Feb 2012 , 9:53pm
post #11 of 14
Quote:
Originally Posted by jason_kraft

We charge $1/minute for delivery (based on the Google Maps estimate) and setup, so for an order that required driving 4 hours round trip with 30 minutes of setup we would charge an additional $270.

This includes waiting time if we arrive at the agreed-upon time and either the customer or the venue is not ready. If we arrive early, the clock doesn't start until the delivery time in the contract.




I'd never thought about charging per minute! We have no traffic to speak of but would help account for the venue not being ready!

We charge $15 plus $0.50/mile for delivery but maybe that's not high enough! I can't imagine delivering so far away!

cakesbycathy Posted 13 Feb 2012 , 3:05pm
post #12 of 14

125 miles is a LONG way to go to deliver an order. It's not just the distance (gas) you need to be compensated for. It's your TIME. You aren't going to be able to do anything else that day. You will have to deliver, set-up, and then drive back. Not to mention that gas is pretty freaking expensive these days.

I charge $2.50 per mile. That's for round trip and includes the "set-up" fee.

If the client wants you to come that far they need to pay for it.

DentalSlave Posted 19 Feb 2012 , 11:27pm
post #13 of 14
Quote:
Originally Posted by cakesbycathy

125 miles is a LONG way to go to deliver an order. It's not just the distance (gas) you need to be compensated for. It's your TIME. You aren't going to be able to do anything else that day. You will have to deliver, set-up, and then drive back. Not to mention that gas is pretty freaking expensive these days.

I charge $2.50 per mile. That's for round trip and includes the "set-up" fee.

If the client wants you to come that far they need to pay for it.




Point well made and I agree whole heartedly. Not sure they want me to do the order now but if I do I will charge both ways. Great posts everyone, thank you so much!

costumeczar Posted 20 Feb 2012 , 2:34pm
post #14 of 14

Most people around here charge a flat fee, but it varies widely. One place charges $100 delivery regardless of whether it's way out of town or two blocks away. Seriously, they really did charge someone $100 to go two blocks down the street. I like the idea of the flat fee per mile, though.

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