Brenda (OH) Posted May 10, 2008 Share Posted May 10, 2008 I deliver within a 25 mile radius of my home and began charging $3.00 per delivery when gas hit $3.00 a gallon. I have raised it to $5.00 per delivery this week. I am curious . . for those of you who make deliveries, what are you currently charging with the price of gas now a days? Quote Link to comment Share on other sites More sharing options...
racolvin Posted May 10, 2008 Share Posted May 10, 2008 I deliver within a 25 mile radius of my home and began charging $3.00 per delivery when gas hit $3.00 a gallon. I have raised it to $5.00 per delivery this week. I am curious . . for those of you who make deliveries, what are you currently charging with the price of gas now a days?Brenda:I raised my delivery price to $8. Honestly, I did it to sort of discourage delivery orders, since at that price it's almost as cheap to ship it as deliver it. Also, I work with my wholesale accounts to offer a No Cost Pickup option where they can place their order online and elect to have pick it up at one of my existing wholesale account locations. Tho frankly I might start charging $1 for that as well Quote Link to comment Share on other sites More sharing options...
islandgirl Posted May 10, 2008 Share Posted May 10, 2008 I would not think twice about charging delivery fees.. Especially if you drive 25 miles out to deliver.. That is a 50 mile round trip..I only ship my products or direct my customers to one of my retail outlets.I had thought about delivery, but it would not benefit my business. To much time running around and $$ being spent on gas..I am sure if you raised your delivery fees, your customers may opt to have their product shipped instead.. It will save you time and money in the long run.. JMO.. Quote Link to comment Share on other sites More sharing options...
LynnS Posted May 11, 2008 Share Posted May 11, 2008 When I first started I offered free delivery with a $30.00 order within 25 miles.Never got any orders so wasn't a problem.With the USPS flat rate boxes customers can get a good rate for shipping. I encourage people to go in with friends and relatives when they order and split the shipping cost. Good candles and good shipping rate.People around here wait till craft shows if they like certain candles. To many of us around and in every neighborhood so they don't have to go far for a certain scent if they want it.Almost next door. LynnS Quote Link to comment Share on other sites More sharing options...
Candybee Posted May 11, 2008 Share Posted May 11, 2008 I'm glad someone brought this up. I have not been charging delivery fees so far. Fortunately all of my store accounts are in town except one.And with my gas guzzling clunker it can cost me upwards of $7-8 for delivery to her. My last delivery to her made me realize that I simply can't continue to do that and have my profits eaten up by the cost of gas. Quote Link to comment Share on other sites More sharing options...
momtohaley2004 Posted May 11, 2008 Share Posted May 11, 2008 I have been considering charging as well, but then I did the math and figure I'll hold off as long as I can. I claim my mileage and the IRS gives this year 50.5 cents per mile. At a rate of 15-18 miles to the gallon and a price of 4.00 per gallon of gas as long as gas isn't more than 7-9 dollars per gallon I figure I'll get reimbursed at the end of the year and my customers still think they are getting something for free. Quote Link to comment Share on other sites More sharing options...
justrightcandles Posted May 12, 2008 Share Posted May 12, 2008 Wow, i need to raise my fees, I charge only $5. :rolleyes2 Quote Link to comment Share on other sites More sharing options...
barncat Posted May 12, 2008 Share Posted May 12, 2008 I don't deliver, unless I am passing by their place....but I can tell you that our lumber yard delivers for $5 within a 5 mi radius, $10 for 5-10 miles, course that was a while ago, I'm sure they up'd it! Quote Link to comment Share on other sites More sharing options...
schmoopie Posted May 12, 2008 Share Posted May 12, 2008 We have tons of wholesale accounts..... we charge a $20 fee for delivery..... BUT we don't have anything closer than say a 20 minute ride ONE WAY....We have one account that is 40 minutes away.... we charge $30..... you not only have to factor gas in there but your time as well. We also have a $300 dollar minimum.... so that usually equates to 100 pounds of candles, at least. They are still saving $$$..... and if you don't think they are jacking the price up to cover that, you are kidding yourselves.We find that the whole "Keystone" pricing works in their favor. We find most double the price of the candles then add a dollar or so....EXAMPLE: Linen Fresheners- wholesale was $2.75..... one account was charging $6.55.So people don't short change yourselves..... they make that money up. I know my time alone is worth at least $10 an hour for having to drive it there, much less gas...For anyone local we still charge handling fees for all our boxes, bubble, peanuts..... which is more than most of you are charging for delivery. These people are getting such a deal from you, they probably do the happy dance when you leave!just my .02........ Quote Link to comment Share on other sites More sharing options...
Brenda (OH) Posted May 12, 2008 Author Share Posted May 12, 2008 Wow - I think I am way under pricing for my customers who opt to have me deliver rather than them pay for shipping. I didn't add in my initial post that local deliveries (in my home town) are free. I am considering a handling fee like schmoopie does. My time is very precious and deliveries whether local or up to 25 miles have me scrambling to schedule appointments that work best for both of us. I do offer free pick ups at my home but by appointment only.Thanks to everyone who posted - this board is AWESOME !!! Quote Link to comment Share on other sites More sharing options...
momtohaley2004 Posted May 12, 2008 Share Posted May 12, 2008 I'm still really debating on the delivery fee issue after reading everyone's response. The only thing that keeps me from it beside IRS deductions right now is the fact that one place particularly, which happens to be my biggest wholesale account, does NOT double their wholesale costs. In fact, they sell for less than I do retail. EX: a product that wholesales for $4.00 they sell for $6.50. I know they could go up on their pricing and be equivalent to what I am on the web (before my clearance sale) but by keeping their pricing this way I get very large orders very often so it helps both of us. I was thinking about charging a fee of say 10% of the total order before or doing it per mileage (round trip) but I suppose when push comes to shove we will deal with that. Quote Link to comment Share on other sites More sharing options...
sudsnwicks Posted May 12, 2008 Share Posted May 12, 2008 momtohaley, if I'm not mistaken, you can still get the IRS mileage deduction if you were to charge a delivery fee. Say you charge $10 for delivery, then this amount would be recorded as income. But the money you spend on gas or mileage would still be recorded in your expense section. Quote Link to comment Share on other sites More sharing options...
schmoopie Posted May 12, 2008 Share Posted May 12, 2008 A delivery fee is a delivery fee, just like handling...... has nothing to do with your taxes. You still claim all the mileage...... just bill like a shipping fee. You are not going to claim mileage on something you ship. I have a very good accountant, so I know this is all good..... Quote Link to comment Share on other sites More sharing options...
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