Hi guys!

So I live in the Los Angeles area and have recieved my cottage food license! I'm currently setting my prices and policies and am struggling with delivery. I have been doing quite a bit of research and fees seem to be all over the board. I want to charge for my time and gas but I don't want to charge my customers too much if their order is only 2 dozen cookies for example and be charging more than my competitors. I also am unsure about charging because delivery is usually a special service, but since I am home based, customers cannot pick up. So delivery would not really be special anymore because that would just be a standard service for everyone. I would love to hear your guys' thoughts on the matter! 

Thanks!

Tiffany

Why can’t you have the customers pick up there orders at your house?? Is it because you want your privacy? Does it make you feel uncomfortable? I’m a hobby baker, but I’ve made several paid cakes for friends of friends and family. All picked up at my home. A few exceptions are wedding cakes that I delivered as the cakes needed setting up. My only other solution is meeting at a coffee shop, or something similar to exchange goods and receive payment. Or meeting somewhere, preferably with lots of people around for safety, half way between where you live and the customer lives to deliver and receive payment.

I believe the standard delivery fee is $1 per mile EACH WAY. Since no two people are going to be the same distance away, you can't charge a set amount for all deliveries.

I can understand not wanting random people knowing where you live, but that kinda defeats the intent of the Cottage Food Law in the first place. It's supposed to be about selling to neighbors/family/friends - - people you know. I guess it all depends on whether the "no pickup" thing is your preference or if it's a legal thing.

I think that $1 per mile is outdated.  It costs much more than that these days.  Here in central CA the ocst of gas is close to $4 per gal. then you have oil, wear & tear, tire expense etc, etc.  I agree using a per mile charge is a fair way to go but I'd put it closer to $2.

I agree with June.  Everyone I know who sells cakes, and they are all home based bakers, have pick up from their homes.  I also agree with Kakeladi, $2.00 sounds a lot more reasonable.

A delivery costs TIME and MONEY. You need to be compensated for both. If I sold a $1,000 cake, free delivery may be worth it. For 2 dozen cookies, not so much. 

Policy may read, "Orders over $100 are delivered free to one address, within 10 miles (per google maps). Each additional mile is $X". Just an example....

PS. Don't you have to actually disclose the address where it was baked under the cottage food license?

OK...curiosity got the best of me.  http://publichealth.lacounty.gov/eh/docs/WhatsNew/fdbCFOlabel.pdf

Looks like your address has to be on the label or listed in the current telephone directory. Privacy may be dead/ mute point. 

I think maybe the neighbors might not want cars coming in and out. Zoning laws! Also maybe the location may have to be ADA accessible.