Hi my CC Friends!
I need to give a customer a price on delivery charge for an out of town cake and I have never done this before so I don't know what to tell her! I am in Michigan if that matters. I wanted to figure out a price for a per mile charge to use for all out of town deliveries. Can anyone helpe?!?
Thank you!
HeatherMari
Think about yourself. How much are you worth (per hour)? How far (time wise) are you willing to go? How far (time wise) is this one? Don't forget the stress of traveling with a cake, believe me, it's not a cakewalk.
These are all questions I would ask myself, if I were in your shoes.
Well I would google local bakeries and check out their websites to compare delivery charges in your area, just to get an idea. Consider the price of gas and the amount of time it would take you.... I don't know what else to suggest
That is what the IRS will let you deduct, but you can charge whatever you want.
I charge $1 per mile (one way). If I drive 60 miles (about 2 hours round trip), they've paid me (minus the cost of gas) about $20 an hour to deliver their cake to the location. I've seen cake sites charge twice this, I personally wouldn't do it for less than $1. It's just not worth it if you do.
I also wont deliver beyond 60 miles. Then I would spend too much time driving for $20 an hour when I could have sold another $600 wedding cake. Beyond 60 miles, I have them pick-up their cake.
If you had to pay an employee to deliver a cake, how long would it take and how much would you pay him/her for their total time for the delivery PLUS the vehicle expense (either by IRS mileage allocation or by gas, oil, tire wear and tear, insurance to run the delivery vehicle, etc)
In the "early" years of my cake business, I would include delivery to local towns in my pricing, because I didn't want people coming to my home shop. Now, with the price of gas possibly shooting to $4.00 a gallon this Summer, I've decided to stop delivering. I now have a home shop location that makes it easier for customer pick up. And since I also raised my prices, it's kind of breaking even for whatever business I lost.
Make the delivery price worth your while. If it's not a wedding cake, I've also met people half way, or "in my delivery zone" at a public place.
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