Misconceptions of delivery in the industry

Most beginners think of delivery as just a "drop-off & pickup" to a client. If that were the case you would only have (2) trips.

In reality:

1. You loaded the items and delivered them to the client (That is one trip)
2. You drove back to your location (that was the second trip)
3. You have to drive back to the client's location to pick it up (that's the third trip)
4. After you pick them up you then have to drive back to your location with the items (that is the fourth trip)

So when you viewed it as a drop-off & pickup that is just "two trips" that is not the case when in reality you did "four trips"

With that in mind, how do you then calculate the delivery cost?:

Charge a flat fee - If you are a vendor that "only" delivers locally and runs a small operation then this might not be bad for you. If you then decide to deliver outside your region you would have to then adjust you're fee.

Charge by Milage - Using this method works a little better provided that you have "a base flat fee + mileage"

example: $55 base local rate within a 5-mile radius & $1.25 for every additional mile after that.

Add it to the price - This method is ok provided you are local or you are quoting over the phone and know exactly how much you will charge for your items and how much you are looking to charge for that delivery. One drawback is that based on the items even if local the delivery rate will always change and customers do notice that and may get turned off.

Or not charge at all - Going this route is fine but at the end of the day, your business is losing money. Even fast food places charge a delivery fee.

With what was mentioned above the main points to remember is that with delivery comes your expenses:

Fuel, vehicle maintenance or repair, employee cost, or labor. The route you choose is up to you. Just make sure that the choice you make helps to cover these expenses and helps you to profit.

Let us and the community know your thoughts on this.

#delivery #fees