As a business owner, your main task is to turn a profit. With that being said, if you find an area of your business that is not performing as well as you like, it’s usually best to think before you act. Often our minds jump straight to raising prices as the only option, but that is not always the best option.
We opened our stores to create beautiful flowers and sell gifts. Delivery is just a supplemental service expected from florists. When the burden of delivery costs continues to grow, what are we supposed to do?
Remember, delivery is one of the line items most customers can understand and identify with. It’s important you are honest and state what the delivery cost is upfront. If you include it in the price of your product, it’s important to state what the price is either on your website or company materials.
At Beneva Flowers, each delivery costs almost $17. It’s hard to justify charging a customer who is purchasing a $40 bouquet an additional $17. (which is almost 50%) to deliver it, so what do we do?
- The first solution is to wait. Don’t run deliveries out one or two at a time. Go into an area when you have a few more deliveries. This will positively impact the overhead cost. By implementing this, we can collect $30 when going into an area with two or three orders instead of going 10 miles away for just one order.
Remember: work smarter, not harder.
- You may be wondering, what happens when the “got to have it now” customer calls? We all get these and the solution is easy. Offer your customer a priority service with a GUARANTEE of delivery within 3 hours. By giving them this option we are aligning the customer’s expectations and positively influencing the bottom line. Customers are okay with choices.
Beneva Flowers delivers 24 hours a day because we understand that in most cases flowers are not something people think about ordering until a reason arises. We want them to know Beneva Flowers is always ready and welcomes their call. Since promoting 24-hour delivery, there has been an increase in delivery requests after 3 p.m. because they know Beneva Flowers can and will take care of it.
By implementing these two simple strategies, you will break even with delivery costs and focus more on why you started your business. What really matters is that your expense is covered, your customer got a great value and is pleased with the overall experience. Customers today have more choice than ever when sending flowers, it’s our responsibility to ensure them they don’t need to search any further than their local florist.