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
No comments:
Post a Comment