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.

sibifirewood · Answer

Thankyou for that resource it looks great! You are right that is key we have been in business 7 years and was the first professional firewood company in the area and have gained and kept customers because they are tired of getting ripped off…I often have to give new customers discounts because they don’t want to pay extra only to be ripped off for a higher price but I always make sure to tell them we stand by our products and will make it right if they are not happy.

Forum Discussion

How do you calculate delivery fees?

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