Delivery Charges

Business By Alexsmommee Updated 11 Sep 2010 , 11:22pm by Echooo3

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Alexsmommee Posted 10 Sep 2010 , 5:47pm
post #1 of 17

I don't think my charge is unreasonable, but I guess I am posting here just to have someone pat me on the back. The customer was a bit taken back on my charge to deliver. I am in the Charlotte, NC area. I charge $0.60 per mile with a $20 minimum. I know the travel rates are around $0.53 in my area, but I figure those folks aren't travelling with tiered cake and can go fast on turns and RR and the such. She has decided to travel the 50 mile roundtrip to collect her cake and commented how this cake is already costing her alot. Which is a whole 'nother story. It turns out it is only costing her $1.20 per serving! Heck, a simple cupcake at WMT is $0.88!! She's getting a filling, quilting, and a large gumpaste bow.

So what do you charge for delivery?

16 replies
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candoo Posted 10 Sep 2010 , 5:52pm
post #2 of 17

I only charge my cost of gas, plus about $10. But I know I should be charging more.
So your cake order was 25 miles away? Del. fee of $30? Very reasonable, I think.

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jason_kraft Posted 10 Sep 2010 , 5:52pm
post #3 of 17

We charge $1 per minute round trip, based on the Google Maps estimated number of minutes for the trip. This is in the SF Bay Area where cost of living is higher than NC, but you are still priced way too low. We don't even offer basic sheet cakes for less than $2/serving.

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Malakin Posted 10 Sep 2010 , 5:59pm
post #4 of 17

Not in my local vicinity, (10 miles) $30 or more. Seems like the customer wouldn't have been happy with anything you offered but getting everything free......

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kellikrause Posted 10 Sep 2010 , 6:01pm
post #5 of 17

If she is coming to get it you better take a picture of it before she leaves and make sure you have a contract that you are not responsible for the cake once she touches it....if she drives like a crazy and messes up the cake you don't want her trying to get a refund or bad mouthing you! I'd pay the $30 for you to deliver, that is very reasonable

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candoo Posted 10 Sep 2010 , 6:03pm
post #6 of 17

Very well said, kellikrause!!

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leah_s Posted 10 Sep 2010 , 7:17pm
post #7 of 17

My minimum delivery fee is $50. And that's if I only go 4 miles. Or if I go 40.

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Alexsmommee Posted 10 Sep 2010 , 8:15pm
post #8 of 17

So, if anything I am undercharging. I know of a bakery in Charlotte that is $70 for anything within the city limits and a minimum of $100 for outside the limits. I just figure no point in comparing apples and oranges. They probably have staff who delivery. I just toss my toddler in the back, the cake in the front, and off we go. icon_biggrin.gif This is a for profit business though, not just a "cute little stay home mom hobby". But I am cute. icon_biggrin.gif

After she collects her cake she will then drive to Burlington, NC. So me meeting her about 25 miles up the road at a shopping mall was basically a convenience for her...not me. And final delivery fee I had calculated would have been $28.80.

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candoo Posted 10 Sep 2010 , 8:47pm
post #9 of 17

Did you charge her to meet her at the mall?? You should have!! You are still delivering!

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Alexsmommee Posted 10 Sep 2010 , 9:23pm
post #10 of 17


Oh no I won't be meeting with her. She decided my delivery charge was too high, and that she is already paying a lot for the baby shower cake - a whopping 1.20 / piece. Oh how I feel faint at that price. In my head I tell her to take all her guests to Starbucks and see how much that would cost. I am betting more than 1.20 a guest! I wouldn't dare say that to her though.

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1234me Posted 10 Sep 2010 , 10:49pm
post #11 of 17

I am making a delivery tomorrow about 20 miles away and I am charging $35 - not enough I know but about the going rate where I live icon_sad.gif

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KakesbyKris Posted 10 Sep 2010 , 11:13pm
post #12 of 17

What's sad is that I am one of the few bakers that charge a delivery fee but it doesn't kick in until after 15 miles. I had to do that to stay competitive with all the free delivery bakers. All of the shops (all 2) have free delivery for all wedding cakes and cakes over $50. I live outside of a town that won't pay for more that Walmart prices. The better customers are in the city 30 miles away so my 15 miles free gets me to the southern edge of that town and then my fee of $1.25 round trip mile kicks in.

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candoo Posted 11 Sep 2010 , 4:39am
post #13 of 17

If only we could say what we wanted to, right?? LOL!! Everyone wants something for nothing, nowadays!!

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SweetsbyLadawn Posted 11 Sep 2010 , 6:29am
post #14 of 17

I give 20 miles free from my zipcode.....Hmmm should I charge?

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indydebi Posted 11 Sep 2010 , 9:40am
post #15 of 17

I charged $1.25 per round trip mile. That means for a 30 mile one-way trip, I'd compute $1.25 x 60 miles = $75.

Please .... do NOT confuse the gov't "reimbursement" rate of $0.53 (or whatever it is) with a delivery fee.

The 53 cents covers basic VEHICLE expenses only. And when you compute it, it sometimes barely covers gas.

It does NOT cover:

- payroll for the person inside the vehicle, to and from the delivery point. Even if that person is you, it's still an expense. A 30 mile delivery is over an hour in the vehicle (1/2 hour there .... 1/2 hour back).
- lost opportunity costs. while you're driving a cake to Timbuktu, you're NOT in the kitchen baking another cake for add'l income.
- lost opportunity cost #2: If you have an employee delivering the cake, now you're short handed in the shop/kitchen.
- lost opportunity cost #3: Once you've finished a cake, wouldn't you like to go home and prop your feet up? Can't do that when you're delivering a cake.
- lost re-sale value on the vehicle (just wait until you want to trade that puppy in and they screw you on the trade in value because you've racked up so many extra miles using it for business). icon_surprised.gif
- Insurance coverage for comm'l vehicle use, which can be double or three times what a personal policy will cost you.

The gov't can tell you how much they will reimburse you. The gov't can't tell you how much you can choose to charge.

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Jayde Posted 11 Sep 2010 , 4:25pm
post #16 of 17

I agree with Debi, our charge was $1 per mile and that was cheap compared to some others.

Dont just think about it in terms of gas mileage, think about the upkeep on your vehicle, the oil changes, tune ups, new tires, etc. Not to mention car insurance. Stand by your price, it wasnt unreasonable.

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Echooo3 Posted 11 Sep 2010 , 11:22pm
post #17 of 17

Oh I'm going to get beat up for this one.

I don't charge for delivery within 15 miles. It gives me the edge over my competitors so when someone gets a price from me there are no "extra" charges. One flat rate. Honestly, when people see that on my web site it generates a call. It also helps that I am within 15 miles of Walt Disney World.

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