# What to Charge for Delivery??



## drobbins (Jun 1, 2005)

if you don't charge $20/hr you're wasting your time
make her come get it
I wouldn't consider driving that far for #10 of honey without getting paid for my time
with the cost of gas going up everybody is going to want you to deliver
don't go down that road
just my 2 cents

Dave


----------



## Shapleigh's Bees (Mar 8, 2008)

I'd offer to UPS it to her for the cost of UPS, plus the cost of packaging. She'd probably balk and just pick it up.


----------



## AstroBee (Jan 3, 2003)

I get a good number of customers that inquire about delivery. I compromise and send the honey into the city with my wife when she goes into work. The customers then just pick up the honey from my wife's work place. I do give customers a price break if they drive out to my place. I believe that with the cost of gas these days most customers wouldn't have a problem with a reasonable delivery charge.


----------



## Michael Palmer (Dec 29, 2006)

You could charge the Federal Milage Deduction. What is that? $0.50/mile?


----------



## Swobee (May 18, 2007)

I don't know how many home delivery customers you have, but saving them up for one trip would be far more cost effective than making a special trip for customer A, then another for Cust. B, etc. Maybe you need to make a route day if the number is high enough to justify. If not, combine the deilvery with a need to be there if at all possible. A shopping trip, dinner out (check out those so-called chefs in that neighborhood), any combination of a need to be near the customer makes it more worthwhile than one special trip out & back.


----------



## Grant (Jun 12, 2004)

Most of my "deliveries" are close by and I combine them with other errands. No charge, and they are so few it's not big deal for me. Most of them are elderly, anyway. Congratulations are in order for your wide distribution! You're doing a great job.

Grant
Jackson, MO


----------



## memcnult (Apr 30, 2007)

I would base it on the federal rate (which is $0.50 a mile) plus an hourly rate, whatever you think is fair. Say, $10 an hour. So on your case, 32 miles = $16, plus one hour, $10, so total deliverly fee = $26.


----------



## riverrat (Jun 3, 2006)

while delivering honey is good customer relations. It is also a double edged sword that can break you. Its a bad habit to get started. Once started people will expect it making it hard to stop. I will deliver honey if I am going in that direction at no charge. But wont go out of my way to do it. 
if I got time to deliver honey I have time to be working bees building equipment or even a rare chance to just set around and enjoy a quite evening


----------



## JC (Jun 3, 2006)

Chef Isaac said:


> I have some honey customers who always want me to deliver and it seems that more and more are popping up who want it deliviered. I used to have a min. for delivery butn ow decided to charger a delivery fee instead.
> 
> However, I have no real hard factual way to calculate what the fee will be.
> 
> ...


If you do not train your customers, they will train you. It looks like your customers have trained you to deliver honey. Once you start charging for delivery, a lot of that will stop. Mileage plus time sounds reasonable.


----------



## arthur (Apr 6, 2008)

I would not deliver. But if I did, I would charge something really HIGH on the idea that people that are too lazy to drive out and get it, paying a lot for delivery is not a problem.


----------



## okb (Apr 16, 2007)

Chef Isaac said:


> I have this lady who wants me to delivery honey to her tonight.
> 
> Any advice would be great.



Hummmm


----------



## riverrat (Jun 3, 2006)

*out of context just like the news paper*



Chef Isaac said:


> it seems that more are popping up who want it I have this lady who wants me to delivery honey tonight. No problem
> Any advice would be great.


Dont let the wife catch ya


----------



## bee crazy (Oct 6, 2005)

Just tell them when you will be at the bank and offer to be there at a set time each week. Kinda like the Swans guy.

I'll bet in time you'll be selling a few cases of honey in an hour each week.


----------



## Swobee (May 18, 2007)

I owe my banker too much money. I'm afraid to set foot on their property if I don't have to, they might take the customer's cash from my hands!


----------



## Joel (Mar 3, 2005)

This is a problem for alot of us. A hobbyist who is running a few hive may be willing to do it for close neighbors. I have people who "know me" who also want to set a cheaper price. 

Keep in mind the fuel cost are high but the real cost is your time as this is the single most important commidity we humans have. How much is your time worth. I would think at least $25.00/hr. If a delivery takes you 15 minutes, then only if you drive fast and don't get into a conversation about honeybees, that would add $6.25 onto a jar. Add a couple of bucks for vehicle expenses and your customers would quickly see it's not worth it for you or them. Even if you could finance it eventually you'd need to hire a delivery person when the demand was high and of course then you face the law of diminishing returns.

We attend a boat load of farmers markets and our time there is our "selling time". I enjoy talking about our operation and products, hearing how much customers like our wares and having people throw money at me for 5 or 6 hours. I've found the best course for those who are looking for delivery is to advise them delivery costs, both in time and money are not conducive to fair pricing and invite them to buy anywhere you outlet your wares. Many times you can make it a big positive from the standpoint of highlighting the advantages of shopping where you sell such as the great variety and neighborly atmosphere of the farmers market, supporting local agriculture or the products and the convenience of a store location and perhaps the ease if you have a honey stand at the house.

We don't deliver even if we drive by the customer every day, we don't discount the price to "people who know us". If you know me well enough to get a discount you know me well enough to get your honey free. 

One other option I've often thought of was getting a 1920's, 30's area type truck and doing a honey route like they did in the old days with wagons. Have not found any way to make it profitable.

Just my thoughts.


----------



## sqkcrk (Dec 10, 2005)

Chef,
I thought you sold to stores. Don't you? You can't afford to deliver 10 pounds of honey at a time, on a per trip basis. I don't imagine that you have that much time.

When I saw the thread name I thought that you were talking about store delivery fees. I'm considering this idea too for stores that are a long distance from home. Mostly I think that the delivery fee should be part of the price.


----------



## Chef Isaac (Jul 26, 2004)

I do sell at some stores, yes. Personally, I know it is stupid, crazy, and... well stupid but I sometimes will deliver if it is in a reasonable distance. For example, the honey I delivered the other day, I charged $20 for delivery. I live in a place that people will pay for that... most of them that is. Some of them wont and they will come pick up there honey which is what I prefer the most.


----------



## EKW (Feb 2, 2005)

If you're talking about charging for your time, $20-25 an hour is nuts, IMO. You're talking about a minimum wage type errand here, not something you charge high labor rates for. Yes, you have gas and vehicle expenses too, but those are a cost of doing business, not something you charge extra for- you should be charging enough for the product to cover that overhead.

If I were in your position, I would offer to ship it to her via USPS Priority Mail- as noted above, you can fill a box and ship it for a flat rate of $8.95. Let her pay the shipping. Time and gas are to valuable to waste chasing around trying to drop off small orders here and there.

Now, if I were going to be passing close by her place, I'd deliver it for free, otherwise, I'd have her pick it up, or pay for shipping. And, if she was going to pay for shipping anyway, I'd get her to buy as much as I could fit in the box- you can get a gallon of honey in the flat rate box.


----------



## JohnK and Sheri (Nov 28, 2004)

Isaac, we occasionally deliver honey (or package bees, for that matter) to an elderly customer or two or to some of our customers who drive horses instead of cars. In the case of honey, I fit the delivery into a time when I will be there anyway. With the packages I make a route of all the folks that ordered. I haven't been charging for any of the deliveries, but will next year for the packages if gas prices continue at these levels. If I was making a special trip and/or it wasn't a big $$ sale I would either not consider the delivery or would charge a hefty fee for my gas, vehicle and time.

>>>you can get a gallon of honey in the flat rate box. <<<
EKW, what kind of container do you use to get a gallon in the flat rate box?
Sheri


----------



## Dan Williamson (Apr 6, 2004)

with the price of gas I have flat out decided that I can't deliver. We live way out and if someone wants a quart it would cost me half the quart round trip to deliver it. Not only do you have to consider fuel but also your time. If someone wants a larger delivery then I would consider but not for piddly stuff here and there.

I have instead tried to find little retail places to sell my honey in the small towns around so that people don't have to go far to get it.


----------



## EKW (Feb 2, 2005)

JohnK and Sheri said:


> >>>you can get a gallon of honey in the flat rate box. <<<
> EKW, what kind of container do you use to get a gallon in the flat rate box?
> Sheri


Sheri-

I only sell in pint and quart jars. I use the Golden Harvest canning jars and have found that 8 of them fit very nicely in the flat rate box. 8 pints= 1 gallon. Not sure how to describe the box as I don't have one handy, but it is one of the ones which costs around $8 to ship, not the new, larger one which costs around $12. I have only had one jar break, and that was the first time I shipped honey and I think I did not wrap the jars well enough- haven't had a repeat since then.

EKW


----------



## JohnK and Sheri (Nov 28, 2004)

Thanks EKW. i don't usually pack in pints, I maybe will look into that. I am familiar with the flat rate boxes, I use them all the time for beeswax and candles. I sure wish they would make them a bit deeper so a quart would sit upright when wrapped in bubblepack. 
The rate went up to $9.30 if you print your own labels, $9.80 at the post office...wish it were still $8 something. The large flat rate is $12.50/$12.95.
Sheri


----------



## alpha6 (May 12, 2008)

Don't forget to factor in the customers worth to your business. If they are a good customer, you don't want to send them somewhere else over refusing to deliver. 

I would set a standard delivery charge if done on your schedule, so as some pointed out here you can make several drop offs at one time cutting down on your expenses. If however someone wants it "now", then I would inform them of the elevated charge. I would figure in a mileage rate and a time rate depending on what the salaries are in your area. Be reasonable with it, but don't cheat yourself. 

Don't follow the federal mileage charts they were based on 2.50 a gallon not current prices.

Lastly, your best bet may be to just tell people you deliver Sat. mornings (or whenever). If they have their orders for the week to you before Friday at 4 then they get their honey on the Sat. delivery. This way you can charge a min. delivery fee because it is spread out between all your customers.

Just my two cents from a business perspective.


----------



## Chef Isaac (Jul 26, 2004)

Iddee charges $1.25 a mile which I thought was a fair price. I will be charging that in the future.


----------



## MapMan (May 24, 2007)

alpha6 said:


> Don't follow the federal mileage charts they were based on 2.50 a gallon not current prices.



For tax purposes, the rates still apply for 2008... unless you don't declare your business revenue, and don't itemize your deductions as a business. 

I don't think the IRS has changed the rates yet for the increase in fuel. Of course, you _can_ specify a handling or delivery surcharge above the mileage rate cap. And, this will have to be placed towards revenue of the business, too.

MM


----------



## hankdog1 (May 17, 2008)

EKW said:


> If you're talking about charging for your time, $20-25 an hour is nuts, IMO. You're talking about a minimum wage type errand here, not something you charge high labor rates for. Yes, you have gas and vehicle expenses too, but those are a cost of doing business, not something you charge extra for- you should be charging enough for the product to cover that overhead.
> 
> If I were in your position, I would offer to ship it to her via USPS Priority Mail- as noted above, you can fill a box and ship it for a flat rate of $8.95. Let her pay the shipping. Time and gas are to valuable to waste chasing around trying to drop off small orders here and there.
> 
> Now, if I were going to be passing close by her place, I'd deliver it for free, otherwise, I'd have her pick it up, or pay for shipping. And, if she was going to pay for shipping anyway, I'd get her to buy as much as I could fit in the box- you can get a gallon of honey in the flat rate box.



EKW i'm just curious about that minimum wage errand. When's the last time you had a plumber charge you $5.15 an hour to drive to your house. My point being if you need it bad enough to ask someone to come out at nite and make a special trip when shipping is a cheaper option then you should be prepared to pay top dollar for your service.


----------

