With Gas Prices Going Higher.....???

Business By korkyo Updated 24 Feb 2008 , 1:42am by indydebi

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korkyo Posted 24 Feb 2008 , 12:17am
post #1 of 5

Do you charge a flat rate for deliveries reguardless of what it is?

Is per mile better than other options and how much per mile. Our gas just hit 3.00 a gallon. thumbsdown.gif

Any suggestions?

4 replies
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rozdei Posted 24 Feb 2008 , 1:18am
post #2 of 5

If you have the same delivery for a long distance one? Then you'll have to eat it, right?

What about having two different delivery fees? One for close by ( < 15 or 20 miles ) and one for greater than 15/20 miles? This may encourage people to pick up their cakes and you won't have to brave the traffic and the gas prices.

I think with most wedding cakes though, you should deliver??? I don't know. I'm interested to see what everyone else says about this.

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leily Posted 24 Feb 2008 , 1:38am
post #3 of 5

I charge per mile according to google maps from my town (which figures it from the court house) I have it stated on all of my paperwork that mileage is figured by google maps. That way there is no confusion and I don't get people saying but it is only 1/10 of a mile further. If google maps says it is 10.1 miles then they get charged for 11. There is no confusion this way and it gives me something to stick to.

As for the cost. I currently chrage $1/mile EACH way. This not only covers gas and wear and tear on the car but my time. You need to take time into consideration though.

I live in a rural area where I can most of the time travel 1 mile per minute. However if you are in a large city or any city it might only travel 1 mile per 5 minutes due to traffic and lights. Make sure you are still making money to cover your time and money.

If you are the later of the town and a lot of city driving then you may want to base it on an hourly rate and go off of the time it should take to get there.

I believe (hope someone can correct me on this, I just let my accountant take care of it) that $.48 per mile (or close to that) can be written off on your taxes. It is around that but I don't remember for sure.

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kaecakes Posted 24 Feb 2008 , 1:38am
post #4 of 5

If it is local I deliver no charge, it is already in the price even if they pick it up. Long distense I charge depending on how far away they are. Local is with in the 5 miles of the 2 city limits where I live.

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indydebi Posted 24 Feb 2008 , 1:42am
post #5 of 5

I do free delivery within 30 minutes based on mapquest from my starting zip code. Anytihng out side of that is a $50 MINIMUM fee.

28 miles .... free
35 miles .... $50

I base the delivery fee on total distance, route (back roads or straight freeway), how big the event is because that affects how big of a staff I need to take ...... they are on the clock when we leave my door PLUS I pay them extra if we/they have to drive a long distance. So let's say the event is one hour away .... I'm paying my staff for 2-hours just in drive time, so the delivery fee is going to cover that.

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