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Out of town delivery charges - charge one way or round trip?

post #1 of 12
4/12/12 at 9:08pm
Thread Starter 
Hi all!

Whenever I have an out of town delivery, I charge .50/mile, and only for the miles one way. Rarely do I deliver over 40 miles from my home. Is this acceptable? Am I over or undercutting? Do you guys typically calculate your miles round trip or one way? This community has always been so great with getting me the answers I need, so when this one popped in my head while packing up cookies for a wedding to be delivered tomorrow, I knew straight where to go!

Thanks so much for any input (:
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post #2 of 12
4/12/12 at 9:57pm
Depends on your area, I charge a flat fee for in-city then by the minute *round trip* plus bridge tolls. I have charged over $200 before, just for delivery.

Part of it is because I am (a little bit) trying to price myself out of out-of-town stuff because it limits my ability to do another wedding that same day. But that's just me.

But yeah, you should be charging round trip. As I believe I've read Indydebi say, does your car magically not need gas on the way home? Is your time no longer valuable? LOL
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post #3 of 12
4/12/12 at 10:00pm
Unless you plan on living at the delivery address, charge for your time on the return trip. We charge $1/minute for round trip travel and setup time (and waiting time if the customer and/or venue are not ready)..
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post #4 of 12
4/13/12 at 4:38am
This is the business forum, so I want to add: Please, you need to start thinking like a business owner.
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website www.BakingFix.com
blog www.BakingFix.com/thefix
Facebook http://www.facebook.com/MimiFix
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post #5 of 12
4/13/12 at 5:04am
I charge $1 per mile, BOTH ways, 'cause I gotta get home.
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Answers to the most often asked questions re: SPS. SPS instructions are on Page 15 of the Sticky at the top of the Cake Decorating Forum. Supplies can be ordered from Oasis Supply, Global or BakeryCrafts.
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post #6 of 12
4/13/12 at 5:07am
I charge $35 within 10 miles of my location. After that it is $2.25/mile one way. I know I gotta get home, but just doing it one way simplifies. Gas prices are INSANE, plus you have tolls, etc.

IF I have to set up once there, I do charge an additional set up fee based on how long I think it will take to put 100 or 200 cupcakes on a tiered display, etc...

I rarely if ever have anyone say my delivery is too expensive. If they don't want to pay, they just pick-up. I've never lost an order due to the delivery fee.
-Stacey
Truly Custom Cakery, LLC

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-Stacey
Truly Custom Cakery, LLC

Website: http://www.trulycustomcakery.com

Facebook: http://www.facebook.com/TrulyCustom
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post #7 of 12
4/13/12 at 5:47am
Thread Starter 
Thanks so much for the replies, you guys definitely cleared things up for me. While I'm not *new* to caking for others, I'm definitely not seasoned yet. I've been at this 3 years now. I run my business from my home, and live in an extremely rural area of Texas, and I guess this is why I charge by the mile rather than the minute. (It takes a little less than a minute to get a mile around these areas!) I don't know why I felt guilty initially about wanting to charge for the miles back, but those feelings are out the door now (:
Thanks again!
Gratitude is the best Attitude.
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post #8 of 12
4/13/12 at 6:28am
Quote:
Originally Posted by TotallyBaked

Thanks so much for the replies, you guys definitely cleared things up for me. While I'm not *new* to caking for others, I'm definitely not seasoned yet. I've been at this 3 years now. I run my business from my home, and live in an extremely rural area of Texas, and I guess this is why I charge by the mile rather than the minute. (It takes a little less than a minute to get a mile around these areas!) I don't know why I felt guilty initially about wanting to charge for the miles back, but those feelings are out the door now (:
Thanks again!



Where are you located? I understand the distances - - I'm in the big fat middle of a whole lot of nothing in West Texas. thumbs_up.gif
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post #9 of 12
4/13/12 at 7:06am
Both ways! I charge $0.52 per mile.
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post #10 of 12
4/13/12 at 10:18am
One price for one way, half that price for both ways: same difference. But using the IRS amounts only cover gas and wear and tear on your car (if that!) and NOT a cent for your time. I charge $3.50/mile calculated one way outside of my city. In the city is free for wedding cakes, $20 for party cakes.
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post #11 of 12
4/14/12 at 11:04am
To add to the list of great advice you've been given and under the column of "thinking like a business owner"......

Let's say you've grown to the point that you hire a deliver person. And bear in mind that right now YOU are the said delivery person. Your 'employee' will clock in at your shop, load the van, deliver the cakes, drive back to the shop, and clock out.

How are you going to pay them for the "drive back to the shop, clock out" time if you aren't charging for it?

Plus there is what is called the Lost Opportunity cost. If you are driving around all day delivering, then you are NOT meeting with a bride and booking a wedding cake or two. You "lost" the opportunity to make money, so you should be compensated for that.

Ditto KoryAK's post. do NOT confuse an IRS tax allowance with what you are "allowed" to charge. The IRS tells you want you can deduct. They do NOT dictate yoru pricing policy. two different things.

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post #12 of 12
4/14/12 at 8:15pm
I agree with the sentiments from everybody about charging both ways.

I have a business in another profession about as opposite from cake baking as one can get, and have never flinched with charging round trips to get my vehicles back in my garage. It is simply an itemized line item on my contract. Gotta have it If you want it delivered the cost is $.$$ per mile and I attach a google map to the destination address. I waive setup fees for wedding cakes otherwise its another line item on my contract.
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