Monday, January 30, 2012

How do you work out delivery costs for raw food products?

Hi there I am in the process of working out my delivery costs for my new halal food company and do not know where to start. we sell packaged meat/poultry and fish products and so Initially i want to deliver to the entire london area. I would highly appreciate if i could get some strong advice on how to work out my delivery costs.



ThanksHow do you work out delivery costs for raw food products?
Well, first figure out how many miles (or is it kilometers in London?) you are going to have to drive. Then figure out how much gasoline (petrol?) costs to go 1 km. Add that all up. Figure in a 10% factor for oil changes and wear and tear on your delivery vehicle. Figure in insurance on the vehicle. Add all that up to get a 1-year average (or 1 month average). Then figure out how much foody ou'll deliver in 1 year (or 1 month) and add the delivery costs to the food costs. Very straightforward, really.

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