# How to charge for delivery?



## TheFastMan_2 (May 25, 2012)

I have to deliver about 20 4x4 round bales to a customer that lives a few miles away from me. I just have my half ton Chevy and a rickety old triple axle 16' equipment trailer, so I will have to make a few trips. If she wants me (instead of her neighbor) to stack for her I'll have to drive the loader tractor over there, too. Last year I charged $100 to take them over and she had her neighbor stack them (my loader was down or I would've). So, I'm wondering what rate (or how do I figure a rate) for delivery. Should I do a flat rate or per mile? I looked up custom rates on Michigan State's Extension site and figured my loader work rate, but they don't list anything for delivery. I don't want to short myself and don't want to overcharge. Thanks for any help!


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## somedevildawg (Jun 20, 2011)

Figure the job by the hour and add fossil fuel costs, just a thought


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## Tim/South (Dec 12, 2011)

I would get a figure in my head, price per bale, on how much it would be worth for her to have delivered and stacked in her barn.
My approach would be, "I can deliver for $ a bale, I can deliver and stack for $ per bale". 
Right now she is paying a $5 delivery fee. 
Can you stack it for $2.50 per bale? That would add another $50 to the bill.
Five dollars to to load and haul.
Seven-fifty to load, haul and stack.


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## TheFastMan_2 (May 25, 2012)

Okay, I did a little more figuring and I think I got a better handle on it. I figured about $25/hr to work my loader. It uses about 4.5 gal/hr of gas and at the current gas prices it comes to about $15.75/hr for fuel. I figured in $9.25 additional costs for operating like wear and tear. I figured hauling to be about $2.50/mile and after 4 it will be about 22miles so that's $55. I'm charging $30/bale, so after figuring I came to $35.25/bale delivered and stacked. Should I figure in a labor charge also?


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## urednecku (Oct 18, 2010)

TheFastMan_2 said:


> . Should I figure in a labor charge also?


Sounds like you have a good handle on your cost. But do you normally work for free? I know maybe you couldn't charge a 'wage', but should get something for your time.


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## somedevildawg (Jun 20, 2011)

urednecku said:


> Sounds like you have a good handle on your cost. But do you normally work for free? I know maybe you couldn't charge a 'wage', but should get something for your time.


Unfortunately, I think we all work for free a lot of the time in the farming business!


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## JD3430 (Jan 1, 2012)

somedevildawg said:


> Unfortunately, I think we all work for free a lot of the time in the farming business!


I know it would be like yelling into an empty room for saying this, but why does that happen?
My clients are RICH people. I mean multi-millionaires. Most pay what I ask, but the prices are really low.
I once saw a bumper sticker that said
"SCREW A FARMER.....EVERYONE ELSE DOES!!!!!"
I'm not even a farm owner, just a commercial hay farmer and I can see the meaning of that bumper sticker.


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## urednecku (Oct 18, 2010)

somedevildawg said:


> Unfortunately, I think we all work for free a lot of the time in the farming business!


True. And I think sometimes _we_ pay_ them_!!


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## Tim/South (Dec 12, 2011)

Farming is the only industry where a product is produced and the consumer sets the price.
We sell cattle and hay at auctions, asking, "What will you give me for it?"
Yet we will keep on plugging away in our given areas of the Ag industry because it is in our DNA and just what we do.


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## somedevildawg (Jun 20, 2011)

Agreed, I've never even considered farming until about 10 ys ago and now after being in it for about 7, I can truly say it's a labor of love because I know it's not for the money, I could make more money selling air conditioners to Eskimos, not kiddin......I've been involved in lots of business ventures in my 51yrs, but this has to be the worst business model EVER! I mean you buy at retail and sell at wholesale, that's never sustainable for any length of time.....but I do enjoy it.......sometimes


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## TheFastMan_2 (May 25, 2012)

Sometimes I wish I would've just kept buying hay. With all the money I have into equipment I could've bought a lot of it, or a new truck, or a small house! it would be nice to take vacations again, too. It is a labor of love, and like devildawg, I do enjoy it sometimes.


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