Hi everyone!

I just received a phone call from a customer who wants a luau cake for 2 weeks from now to feed about 50. She asked if I deliver, and when I found out where to, I realized it was 80 miles away! Basically, going through DC and the beltway out to the ocean! How do you guys charge for delivery? Is it by time spent in car, or by mileage? What are your rates? I've never had to deliver that far. Any tips would be great!

$1.00 PER mile, ROUND TRIP! Maybe she, (or a friend) could meet you half way... Good luck!

I charge .70 a mile/but when I'm stuck in traffic and use most of the money on gas, my TIME ends up being free... So I agree charge at least $1.00

yvette

IRS rate is 50 cents / mile for business.

BUT -- that is just for gas, maintenance.

They figure your employer is already paying you for your TIME!

Since you are your own employer, you MUST also figure in the COST of your time.

If you say your time is worth $12/hour and it takes 5 hours to do the delivery (based on avg. of 40miles/hour in DC/Beltway traffic and set up time at venue), they you have to make sure you get at least $60 for your time.

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so -- 160 round trip miles at IRS rate = $80 + $60 (5 hours @$12/hour) = $140

160 miles @ $1/mile = $160.

So in this case the $1/mile works, but just barely.

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But, if your hourly rate is higher, then will it?

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and yes, it is always charged round trip.

I charge $1.25 per mile, round trip, with a $50 minimum for in town deliveries.

HOWEVER . . .

you also have to figure your lost opportunity cost. What's your average sale for a party cake? If the delivery on this cake takes away your ability to sell another cake that day, then that's the lost opportunity cost of the delivery. In this instance my delivery fee would be about $450 - probably more than the cost of the cake.

Basically, I would not even consider delivering a 50 serving cake. That's a pickup.