U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Work and Employment > Job Search
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-28-2019, 08:03 PM
 
4,367 posts, read 3,547,285 times
Reputation: 2925

Advertisements

I'm starting a small food delivery service, but my client wants to know how much I charge. I do not know what to tell her.

I was thinking I would charge .25 cents per mile, and a flat rate of $10 for 2-20 miles, $15 20-40 miles, $20 40-60 miles. Is this reasonable? If not, how should I calculate it? I want to get the job, and my car is fairly economical on gas. It really only costs me about .15 cents per mile, if even.
Reply With Quote Quick reply to this message

 
Old 03-01-2019, 07:52 AM
 
Location: Los Angeles
12,159 posts, read 10,333,551 times
Reputation: 33133
If you are starting a service you probably should have thought about this well before you took on a client.

Look up what others charge in your area and do similarly. You need a business plan.
Reply With Quote Quick reply to this message
 
Old 03-01-2019, 09:18 AM
 
9,778 posts, read 16,962,550 times
Reputation: 18389
Are you delivering groceries, or restaurant food?
Reply With Quote Quick reply to this message
 
Old 03-01-2019, 06:31 PM
 
2,387 posts, read 683,329 times
Reputation: 3374
Have you researched Ubereats, doordash and other food delivery services? They are likely to underbid you easily.
Reply With Quote Quick reply to this message
 
Old 03-01-2019, 09:43 PM
 
4,367 posts, read 3,547,285 times
Reputation: 2925
Quote:
Originally Posted by joe from dayton View Post
Are you delivering groceries, or restaurant food?

Groceries. This is fresh produce from the farmer's market. I was hoping most orders would be $100 or more, and I'm assuming this isn't a per client price, just the amount I charge the distributor. I was trying to account for the possibility that these fees would cover me delivering to multiple locations within the area.


Do you think a fee based on percentage paid for the order makes more sense, then? I didn't want to charge a flat rate of say 20 percent, because what if the order is under $50?

I guess I could just tell them it's a flat rate of 20 percent. That's probably reasonable, but I'm not sure if it will even be worth it if a client has, say a $20 order. Even with my car, that would barely cover gas if they are 40 or more miles away. If I'm going to do percentages, I think it's reasonable to charge mileage, too.

Quote:
Originally Posted by 2wered View Post
Those prices are crazy high compared to established services. You seem to be going about this the hardest way possible. Just sign up to drive for Uber Eats and you won't even have to deal with this stuff.


If you delivering ready to eat meals, a 40-60 mile trip is unreasonable. Would you want to eat food that had been sitting around for an hour or more?

I'm not sure if Ubereats works with farmer's markets, and for some reason, I'm not qualified to drive with Uber. The report from Checkr said that I recently "surrendered" a licence, and I did, because I had to turn in my old license when I moved to another state; that's fairly standard practice. I'm not sure if there's maybe a minimum state residency requirement to drive with Uber or not. If that is the case, I wish they would have stated that more clearly. The way the Checkr report is phrasing it is making me think perhaps they don't even have humans looking at those things. Yes, I do have a license that is inactive in another state, because I'm not living in that state. Is that too hard to figure out? I'm registered to drive with Lyft, so why should I be disqualified from driving with Uber? I'm not sure it really makes a lot of sense to me, and I feel like it's an error, but getting it straightened out isn't really worth the hassle, is it?

Last edited by krmb; 03-01-2019 at 10:20 PM.. Reason: more info
Reply With Quote Quick reply to this message
 
Old 03-02-2019, 07:34 PM
 
9,778 posts, read 16,962,550 times
Reputation: 18389
You need to charge a set delivery fee that covers a certain distance. Anything over that distance gets charged X more. That said, I don't see anyone asking you to make a long grocery trip for them. I think you are going to be disappointed on the standard farmers market order -- I bet the average person spends less than $10 at one. What do you pick up? Some tomatoes, a few ears of corn, a couple of cucumbers, etc. Who spends $100 at the farmer's market? A decent grocery store has a good produce department so, IMO, the average shopper will pick up what they need there if they happen to miss their trip to the market because the delivery fee will not be worth the expense.
Reply With Quote Quick reply to this message
 
Old 03-03-2019, 12:43 PM
 
Location: Northern panhandle WV
3,007 posts, read 2,167,665 times
Reputation: 6691
Quote:
Originally Posted by joe from dayton View Post
You need to charge a set delivery fee that covers a certain distance. Anything over that distance gets charged X more. That said, I don't see anyone asking you to make a long grocery trip for them. I think you are going to be disappointed on the standard farmers market order -- I bet the average person spends less than $10 at one. What do you pick up? Some tomatoes, a few ears of corn, a couple of cucumbers, etc. Who spends $100 at the farmer's market? A decent grocery store has a good produce department so, IMO, the average shopper will pick up what they need there if they happen to miss their trip to the market because the delivery fee will not be worth the expense.
I would say that those that might spend $100. at a farmers market might be people who can and preserve food. That is what I do if I do in fact go to the Farmers market, however I also bring the food home with me, I don't have it delivered.
I really don't quite understand the need for this service or how the OP expects to make any real money doing it.
Reply With Quote Quick reply to this message
 
Old 03-03-2019, 03:23 PM
 
9,778 posts, read 16,962,550 times
Reputation: 18389
I agree. It does seem to be a solution in search of a problem.
Reply With Quote Quick reply to this message
 
Old 03-03-2019, 06:15 PM
 
4,367 posts, read 3,547,285 times
Reputation: 2925
Well, the person who runs this particular farmers' market was the person who approached me about it, so she should know what kinds of services she needs. I just wasn't sure how much to charge.

Let me start over.

Recently, I put an ad online advertising affordable grocery delivery, $10-$15 extra for the entire order pickup and delivery. The owner of a local farmer's market contacted me and wanted to know my prices for shorter and longer deliveries. I told her I would need to figure it out and get back to her, and now I'm still wondering how much I should charge. Twenty to thirty percent of the price of the entire order plus a little for mileage sounds fair, but I would need to include a minimum to actually make it worth it.

What do you think my minimum delivery fee should be? I don't want the farmer's market to feel cheated, but I also want to feel like I'm making at least a small profit and not just breaking even. I have a habit of underbidding, and I didn't want to do this in this case.

Let's say ten people order $10 worth of items from the farmer's market, and I charge the farmer's market $25 to deliver the entire order. Would that be fair or overpriced?

That would be 20 percent of the entire order, plus a little for gas, maybe 15 cents per mile. I guess I could go lower, say 15 percent, and that would work for larger orders, but maybe not so much for smaller ones.

Last edited by krmb; 03-03-2019 at 06:44 PM..
Reply With Quote Quick reply to this message
 
Old 03-03-2019, 08:24 PM
 
2,387 posts, read 683,329 times
Reputation: 3374
Those rates are very high compared to delivery I've seen on PeaPod.

Quote:
If you buy more than $100 in groceries, your delivery fee is $6.95. An order between $75 and $100 has a $7.95 delivery fee, and an order between $60 and $75 has a $9.95 delivery fee. There is a minimum order amount of $60. However, there are ways to lower your delivery fee.
https://www.moneycrashers.com/peapod-reviews/

If you manage to get some customers who use your service, they will eventually switch to someone else. Your rates are nowhere near competitive.

And that's just PeaPod. There are other grocery delivery services out there. You're at a competitive disadvantage.

Oh, and wait until the drone delivery service gets off the ground, you're out of business.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Work and Employment > Job Search
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2019, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top