For those of you that delivery and charge, how do you determine the cost? Do you have a flat fee or do you use some kind of cost per mile formula?
Thanks!
I charge a flat fee. That way there's no room for discussion on exactly how far it is from A to B. My fee is $15 in town (appx. population 25,000 with little neighboring suburb) and $20 out of town up to 50 miles away, then more depending on how far. I know some people don't charge for in town deliveries, but it still takes time even if not as much gas. I'm a storefront bakery, so when I'm not there, I'm paying someone to be and that is figured into my cost. Most deliveries even when they're close I figure take over an hour of my time, when you include loading from the store, unloading at the site (if everything is set up for you) getting everything assembled and leaving a checklist, etc. and returning. I'm thinking of raising my out of town to $25 because of the price of gas. -Lori
im just working out the details of my biz, which will hopefully be running by july/august. im only going to do wedding cakes, and what im planning on is free delivery within 15 miles, and then $1 per mile (each way) after that. i set my prices a little higher, but then offer the convenience of free delivery and set up, and no extra charge for fillings and multiple flavored tiers. that way (im hoping) they will see this as an all inclusive service, not just a lady who makes cakes, LOL. we'll see how it actually works out when im taking orders!
if i were to do a cake thats not for a wedding, i'd have them pick it up or charge a flat fee no matter how close or far away it is.
Thanks guys! Nice to see different ideas. I just don't know what to do.......I've actually had a customer tell me that I need to charge for delivery. LOL! Okay, fine, I'll take your money. 
I deliver anywhere within my zip code for free (approx. 10-15 miles on way), anywhere within the county for a flat fee of $15.00 (approx. 15-30 miles one way) anything further I charge at government rate which last I checked was $0.435/mile from my driveway. The ratemight have changed since I checked last due to the increase in gas prices. Things here are VERY spread out compared to other places I've lived and I find this works best for me. Hope that helps!
The government will let you deduct up to .33 cents per mile of travel (last I was told by an accountant. So I added a little more to help cover my gas up to $0.50/mile (don't forget to count the return trip too)
I have it stated that I will deliver within 7 miles of the city I am in according to Googlemaps.com Anything over the 7 miles is figured at $0.50/mile rounded up. I have listed what map I am using so if they want to figure it up they can, however if it comes up to 7.1 miles then they will get charge $1.00 b/c it will be rounded up. This way there is no debate about well it is only an additional 1/10 of a mile can't you just not charge? It is what it is, take it or leave it.
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