How Much Do You Charge For Delivery?
Baking By Newatdecorating Updated 15 Sep 2008 , 3:38am by mommyle
I live approximately 17 miles town and am going back and forth on a set delivery charge. Any suggestions would be appreciated.
17 miles x 2 = 34 round trip miles x my rate of $1.25 per mile = $42.50 delivery fee.
It's not just covering your gas ... it's covering the use, wear/tear of your van, tires, commercial insurance, and the payroll for the person in the van (whether it's you or someone else) to drive around for an hour delivering something.
I charge $.50 per mile one way. I know, I know, I'm driving round trip. I think .75 per mile is the government allowed. Don't forget that you have to pay tax on your delivery fees (if this is right...I haven't checked into it yet).
Bear in mind, folks, that what the gov't allows for a business tax deduction and what you charge for a service rendered are two TOTALLY different things and they don't really have that much of a bearing on each other.
If I want to charge $10 a mile, I can. What the gov't allows me to deduct as a business expense has nothing to do with it.
I just don't want people thinking they are locked into charging just whatever rate the gov't sets up.
Thanks indydebi! I wasn't too sure on that anyway. I should leave that up to the business experts on here, but I knew I had read something about it. 
irs charge is based ONLY on gas and car expenses- not the other things like payroll and overhead as indydebi pointed out. As usual, she is 100% right. 
I recently changed my delivery fees to $30 an hour roundtrip- the majority of my deliveries are 45 mins-1 hour one way......so lately when I mention how much it will be I hear a short gasp and quickly followed by---"I'll just have someone pick it up". No problemo!
I'm almost ready to have a local delivery radius that is free and then everyone else can pick it up. If you wanted something from the bakery across town you would have to go pick it up from them, so why not me too? Most places don't deliver anyway.
To quote directly from my site:
Delivery of wedding cakes within the city of Calgary is $25. Outside of Calgary we reserve the right to charge $0.40 per kilometer, each way. With some cakes it is possible for a designated person to pick up the wedding cake, however we do reserve the right to insist on delivery. And, really, who wants the stress of worrying about a cake on your special day?
Now, if you have better wording for me, fire away, but I think this covers it all. I used to say that I charge by 1/2 hour, but I know I drive faster than I should!!!! Birthday and other occasional cakes I have them pick it up, unless it's a cake that needs to be delivered. Or unless I can make a 2 birds with one stone out of it, like my DD's friend lives nearby and I can either drop off or pick up for a play date, or there is a reason for me to go that way, you know? I'll stop rambling now.
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