Rising gasoline prices are not only annoying--they can be extremely troublesome to any company that delivers food. To solve the problem, do what the big guys do and add a fuel surcharge to every invoice. When Sysco and US Foods deliver to you, chances are you'll see this charge at the bottom of your invoice. Do the same with your customers.
On each invoice add 5.00 or 7.50 and call it a fuel cost adjustment. After you've done it once, most customers will accept it and not question it. Of course explain the situation to the customer when you take the order, or include a written explanation like this on the actual invoice:
"Due to the recent increase in fuel costs we have had to institute a minimal fuel cost adjustment. Thank you for your understanding."
Think about it. Ten orders today and each now produces a 7.50 surcharge. That 75.00 should help fill the tank.
Solutions For The Drop Off Catering Industry
Monday, March 21, 2011
Sunday, March 13, 2011
Delivery Charges--Are They OK?
Customers know that it costs money for your company to deliver their food on time. These costs are above and beyond the the expenses for food, labor, and packaging. It is reasonable to add a delivery charge for each drop off catering order. Here are some important points to remember, however:
1) First check competitor's delivery charges. You don't want to be the only one who charges $30.00 when everyone else is at $20.00 or below.
2) Consider a flat rate for all deliveries, regardless of distance. Note the success the Post Office has had with flat rate Priority Mail marketing. You can always tack on a surcharge for a true long distance order. Prix fixe is the way to go!
3) Make sure the customer is notified up front about the delivery charge. No one likes surprises.
4) Check local state taxing regulations to see if you should charge sales tax on the delivery charge.
5) If you pick up your drop off equipment later, don't add another charge for this service. Customers are usually annoyed by this practice.
Delivery charges can be a great way to recoup labor and vehicle expense. If one driver delivers three lunch orders, you could receive an extra $60.00 in income if you charged a $20.00 delivery charge on each order. That definitely adds up!
Next: Rising Fuel Costs--One Way To Soften Their Impact
1) First check competitor's delivery charges. You don't want to be the only one who charges $30.00 when everyone else is at $20.00 or below.
2) Consider a flat rate for all deliveries, regardless of distance. Note the success the Post Office has had with flat rate Priority Mail marketing. You can always tack on a surcharge for a true long distance order. Prix fixe is the way to go!
3) Make sure the customer is notified up front about the delivery charge. No one likes surprises.
4) Check local state taxing regulations to see if you should charge sales tax on the delivery charge.
5) If you pick up your drop off equipment later, don't add another charge for this service. Customers are usually annoyed by this practice.
Delivery charges can be a great way to recoup labor and vehicle expense. If one driver delivers three lunch orders, you could receive an extra $60.00 in income if you charged a $20.00 delivery charge on each order. That definitely adds up!
Next: Rising Fuel Costs--One Way To Soften Their Impact
Wednesday, March 9, 2011
Abundant Labor Supply Won't Last Forever
Even though we are in the very beginning stages of the economic recovery, and even if your job posts on craigslist net you 50 or more applicants, this will not always be the case. Although this recession was unusually deep and nasty, unemployment will eventually drop. Now is the time to position yourself for the coming changes. If you were in business 5 years ago, you will remember the chronic food service labor shortages that plagued many operators. Whether this occurs again late this year, next year, or in 2013, now is the time to position yourself to blunt the effects of the inevitable tightness that will occur in the labor market.
Figure out today how to retain employees in the future. Rethink profit sharing plans. Consider an allowance toward health insurance premiums. Remind your employees of their current benefits such as free or reduced price food and beverages and flexible scheduling. Never think that employees "can't quit" because they have no where else to go. Do what you can now to retain staff for the future.
Figure out today how to retain employees in the future. Rethink profit sharing plans. Consider an allowance toward health insurance premiums. Remind your employees of their current benefits such as free or reduced price food and beverages and flexible scheduling. Never think that employees "can't quit" because they have no where else to go. Do what you can now to retain staff for the future.
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