How do you calculate delivery fees?

Question

Gas prices are going up drastically!! When should we make the jump to increase delivery fees? Our customer base already complains about delivery fees because we are in the firewood market with a lot of our competitors not being official businesses, they usually just sell wood from their backyard so they are not concerned with overhead. &nbsp; How do you calculate delivery fees? &nbsp;Has anyone ever done a gas surcharge to introduce a hopefully temporary additional charge while prices are high?

tylerpotter · Answer

My initial thought is use the blue ocean strategyto clearly define your differences and market towards them. There's no way you're going to beat Jo Schmo's non existent delivery fees if that's what your customer actually cares about and that's what you're trying to compete on. But if you're customers are continuing to stay with you even though someone else is giving free deliveries (and probably cheaper service) then there's a reason. Capitalize on the reason or reasons they stay with you.

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How do you calculate delivery fees?

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