Whether you are a small gift store or a restaurant, you might have been thinking about adding free delivery to your list of services to get new clients to try your products. There are plenty of ways you can introduce delivery in your business and attract clients from outside of your catchment area. Below you will find some advice on what to consider before you decide to go ahead with offering free delivery.
You will incur delivery, staff, and vehicle costs when you deliver your goods. You might need to set a minimum order value to qualify for free delivery, so you can cover these costs. On the other hand, you could also outsource some postcodes and areas and take care of your local customers’ shipment yourself. This way, you can deliver the same service, but save time and money on fuel.
Cost of Running
You will also have to calculate whether it is financially feasible to offer delivery for customers. You will need to compare the deals on motor trade insurance cover as well as the drivers’ wages, the fuel consumption, parking, and other legal protection. If you are only serving a smaller geographical area, you might consider having a contract with a company to take care of your deliveries, instead of investing in a fleet. If you have a restaurant, you can employ your own part time delivery drivers for a few hours at night.
You will also need to consider the cost and other implications of maintaining your fleet. If you buy or lease commercial vehicles, there will be restrictions on insurance and maintenance. The condition of your fleet will be checked and needs to be documented, so you can prove that you have taken every precaution to keep the public safe. Check the regulations and calculate the cost of maintaining your fleet.
Before you make a decision whether you should offer free delivery to your customers, you need to work out how fast you can get the items to them. If you cannot beat courier services of the mail service, chances are that you might be better off outsourcing the delivery. If you can create a system that allows you to ship out orders the same day, you can create a competitive advantage and your investment will be worthwhile.
It is also crucial that you look into fleet management and logistics planning apps and software. Without communication, you will find it hard to manage your deliveries, fleet, and staff. Work out the cost of implementing the system in your ordering process and giving your employees access to update the status of each delivery real time. If you don’t have the tools and resources to communicate with your employees and track packages, you might be better off without adding delivery to your services.
Offering free delivery can increase your conversions, but you have to make sure that you are comfortable with the cost of running your own fleet and you don’t end up losing money.