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Delivery Fees

post #1 of 3
4/9/08 at 1:33pm
Thread Starter 
I've been doing a lot of corporate catering lately. We charge a delivery fee of $20 if it's over 10 miles. This seems to be about average in my area, some companies charge as much as $40. Anyway, this topic has become my obsession lately, as I don't want to lose customers over it, but I also want to compensate my delivery person appropriately ( she gets all of it, and uses her vehicle)

I was hopeing that some of you out there would be willing to share with me what you charge for delivery and how you came up with that number, I would greatly appreciate it! Thanks

Shannon
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post #2 of 3
4/9/08 at 2:50pm
$25 is the market average. For a big order or a regular client within 1/2 mile I'll let them know I'm not charging them....like a lagniappe.
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post #3 of 3
4/11/08 at 3:06pm
We charge a $20 delivery fee + 7% gratuity to the invoice.

The $20 delivery fee goes toward maintaining our catering vans (2)... gas ($3.75 a gallon right now), insurance, etc. The $20 is for up to 25 miles, after that it increases about $5 per 10 miles.

The 7% gratuity goes to the driver. The driver gives 5% of that 7% to a pot for the cooks.

We rarely get a complaint from anyone over the fee. By ordering through catering our clients are getting a price break over the restaurant's menu prices. They also have the option of picking up the food, if they prefer not to pay it.

For pharmaceutical reps we only charge $10 for up to 10 miles, which covers most of the hospitals and doctors offices that we deliver to anyways.

When we quote our customers we always make sure and let them know about the $20 + 7%, plus 95% of our invoices are confirmed by fax or email... and a lot of times, they still tip the drivers more.

When I first started working here, I felt uncomfortable discussing this with the customer... but 10 years later, I realize that the majority of our customers prefer to know up front and am actually glad to not have to think about it.

BTW, the 7% is just for straight delivery of the food.... no actual serving.

For non-profits and those requesting donations, we don't charge the $20, but will still charge the 7%.
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