I have someone that wants me to make their wedding cake and deliver it. They live 3 hours away. It's actually 181.6 miles. How much would you charge for delivery? Would you also count the time it takes to drive back home? She wants a fondant cake so it's already going to be high priced but if I could do this, that would be great! Thanks!
I charge $.50 per mile (both directions, you are still driving and can't do anything else, and you are still paying for gas) after 7 miles from center of my town. So My price would $174.60.
Some people on the boards charge $1/mile... but I believe this takes into consideration the additional time it takes to travel per mile. For instance I live in an area where I can travel on average one mile per minute... so in an hour I charge $30 for traveling. But there are some people who it take two minutes to travel one mile so in an hour they are only making $15 at the $.50/mile so it make sense for them to charge $1/mile so they are make the $30 per hour... Hope that was a good enough explination.
Yes, you absolutely factor in drive time both ways! You look at it from a business point of view..... if you had an employee that you were paying to deliver a cake, you would HAVE to pay him/her from the time the left your building until the time they returned. If they used their personal car (which I would not recommend for a business delivery, due to insurance liability issues), then you would also be paying mileage expense, which is $0.40-$0.45 per mile these days (haven't checked lately ... don't quote me).
181.6 miles x round trip = $165 in mileage reimbursement alone (round numbers). Assume avg 60 mph = 6+ hours times $10 per hour for the employee = $60-$70. Total in round numbers: $235-$250.
It's the cost of doing business ..... it's the cost of the product. The customer is not being reasonable if they think they can get a 6 hour round trip delivery for fifty bucks. Tell them their other choice is to tie up THEIR day all darn day to come and get it.
At the price of fuel nowadays!! Hell yeah I'd charge her! The going rate where I live is 1$ /per kilometer. There is 1.6 kilometers in a mile...so I guess you could charge 1.50$ /per mile. And definitely charge both ways...gas isn't free on the way home...or if it is I'm moving to where you live...LOL
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