Catlover Posted January 9, 2012 Share Posted January 9, 2012 (edited) How do you guys decide if/when to charge a customer for delivery? I have one wholesale account I don't charge, because even though it's about 30 minutes away, I always have other places to pop into along the way so it's no problem. But I just got a new account that's about 45 miles away, and not in a direction I ever need to go for anything else.I want to be fair...my Honda Civic doesn't use much gas , it's just the time involved. A delivery charge would naturally be cheaper for them than paying for shipping. I was thinking $25.00? It would be nice if we knew what stores' other vendors charged! Thoughts? (BTW, I called on the shop knowing the location...it's a great area...so I kinda feel I shouldn't charge them to deliver, know what I mean?)Thanks,Terri Edited January 9, 2012 by Catlover Quote Link to comment Share on other sites More sharing options...
blacktieaffair Posted January 9, 2012 Share Posted January 9, 2012 This may be of absolute no help to you but : I'd take into consideration that if you will be the one doing the delivery, you have to package it, load it, drive it there, you are the one paying for the gas, unload it, stay while they check everything to make sure it arrived as ordered and nothing is broken or missing, and more than likely you will more than a few times get involved in conversation with the owner/purchasur of the store. All this is taking time away from work you could be doing, need to be doing. In that case, I'd say yes, absolutely charge a small delivery fee. What do you consider your hourly wage , whether you pay yourself or not, what do you consider it? You are looking at a minimum of 3 hours away from working to MAKE more money, while you are (please dont take offense to this because none is intended ) playing " delivery girl ".But on the other hand I do see why you wouldn't want to charge them esp. since you are the one that called on them.Does your car/ business insurance cover your product if its damaged in transit? Also, believe it or not, some car insurance will not cover a vehicle if it is in a wreck while being used for business purposes. I know those last two might seem like stretching the realm of things that could happen and probably wont, but if you have my luck... Quote Link to comment Share on other sites More sharing options...
NaturallyTru Posted January 9, 2012 Share Posted January 9, 2012 (edited) IRS Mileage Rate for 2012: 55.5 cents per mile. 50 miles would be $27.75. Weigh it against shipping. Weigh it against amount of sales the account brings you.hth someI currently deliver because the accounts I have are my only accounts and I wanted them badly. I go count inventory 1 day every other month to all locations (one big trip). Oct-Jan I do every month. I bring new stock with me. New accounts if they are in the area of my old accounts I will accommodate if it falls within my regular trip. Otherwise I probably will ship. Edited January 9, 2012 by NaturallyTru Quote Link to comment Share on other sites More sharing options...
Catlover Posted January 9, 2012 Author Share Posted January 9, 2012 (edited) Oh, I know...all the time involved is what I've been thinking of, although packaging, etc. is what I do all the time, whether to ship or to deliver, so I don't worry about that part. No offense taken about playing "delivery girl"--it actually makes me sound kind of perky. Seriously, though, the thing about me calling on them is the sticking point. If they had sought me out like my first wholesale account did, I wouldn't even think twice. As for insurance, I'm covered from both sides, so that's not a worry, thank God! I can come up with enough other things to worry about. The dollar amount is another thing: I have two wholesale accounts that order big; this is the first one for this store, but like you, I wanted it badly as well because it's in a super location for many reasons. The owner is very casual about it all and probably wouldn't even blink. If I charged the actual IRS mileage, she might! (I just got notified about jury duty and they're paying a whopping 10 cents per mile...think they need to update their forms.) Edited January 9, 2012 by Catlover Quote Link to comment Share on other sites More sharing options...
Catlover Posted January 9, 2012 Author Share Posted January 9, 2012 OK, shipping would cost them about $42 for this order. If I charge a flat $25 they're getting a pretty good deal. Quote Link to comment Share on other sites More sharing options...
NaturallyTru Posted January 9, 2012 Share Posted January 9, 2012 Remember that they have sales reps dropping in to get their business. The companies the sales reps work for will charge them shipping.If $25 works for you , then I say go for it. If you get a lot of negative feedback them revisit the issue. Quote Link to comment Share on other sites More sharing options...
Catlover Posted January 10, 2012 Author Share Posted January 10, 2012 It's such a small shop, but I didn't really think about sales reps popping in...good point. Unless it's an all-local store (one of mine is), obviously somebody's paying for shipping! I appreciate the feedback. Quote Link to comment Share on other sites More sharing options...
Pam W Posted January 10, 2012 Share Posted January 10, 2012 If you charge for delivery then you have to claim that as income. Personally, I wouldn't charge for delivery and just track my mileage for income tax deduction. Quote Link to comment Share on other sites More sharing options...
Kitn Posted January 10, 2012 Share Posted January 10, 2012 what Pam said. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.