so, let’s bottom line all this . . . no one’s opinions about fair wages or treatment and structure of delivery service has ANYTHING to do in the world with the original question. but off we went again like the mindless sheep we can be :shock: My personal apologies to the OP.
Back to documentation of anyone garnering increased sales volume or sales gross revenues by having “free delivery”.
Nick is correct. Sorry to the OP. The good news is that Steve answered his question on the 2nd post on page one. You either charge the fee or hide it in the cost of goods sold. There is no “free” delivery no matter how you look at it. You just charge it one way or another.
As far as where this thread has gone. 5 pages of people posting comments directed towards one person that took over this thread on post 3 page one! We have another whole thread gone astray because of one person’s delusions on how they think the rest of the world should work. I spent a good amount of time this morning looking at all the past posts of PPG and see only one thing. His only objective is to lead any conversation into his arena of driver compensation. He has personally lived / worked in a position that obviously he feels he was wronged and now feels that attacking the many a good business owners in an open forum is his way to take his revenge. To that…you are a waste of time and effort for all of us. You bring nothing too this forum execpt too take away from the legitimate questions and comments from many. Please, do us all a favor and take your complaints to the one that has caused your complaint. Tell your so-called buddy how you really feel about being paid and treated as you did while in his employment. Call your congressman or senator and address the tip-credit laws. Go in the basement and scream! Whatever makes you happy…but do us all a favor and get over yourself! :idea: :arrow: :!:
I therein lies even the premise for thinking sales coule go up at all . . .using the magic word “free”. It is a complete manipulation/misdirection as you say, because the cost will be paid one way or the other. I am surprised as I hear from more owners that “Free” delivery has not been a powerful marketing tool . . . but the coupons for bundled offers are. Granted, they are self-report and not at all comprehensive . . .it still surprises me that “free” is losing its power a little bit as more people are price sensitive and seem to be demanding “better” for their dollars. Even Wal-Mart and Target aren’t thundering sales in their cut-price models . . . people are looking for better quality at an affordable price in that industry according to their marketing studies. Maybe that is what has been happening along the last decade in our industry (outside college markets)? Just don’t know.
Nick I think that the word “bundled” has taken over. Value meals at fastfood… 2 pizzas plus sticks for… even clothes… buy 1 for $x but get 2 for $xx. It is all just marketing, but the seller is always on the better side of the deal by knowing what too bundle. The customer sees DEAL in their eyes even if it is not one. As far as free delivery…even the low-end customers are starting to figure it out. Dominos offers $7.99 large 3 topping pizzas now…sun-wed… PICKUP ONLY. Or you can order it delivered for $9.99 or whatever. You pay for it somewhere. The big pizza guys and others are causing their own pricing issues by having different prices for the same items on different days of the week and also for pickup or delivery options. I am with Daddio on this one…charge the customer what it costs for the service. It is a line-item menu item… Here is your food total… that is taxed at X% and lastly… the delivery fee of $XX. That fee is $0 if you dine-in or pickup.
Yes, apologies from here as well. Just got heated with accuastions of owners being greedy, but moving back to the subject.
If sales increases come about from free delivery why is that Domino’s, PH and (here) Eagle Boys all have a pick up price and a delivery price?
Why is it that in Australia both Domino’s and Eagle Boys are expriencing double didgit growth, especially Domino’s who are +20%, while having a $7.95 pick up price and a $10.95 delivery price clearly advertised on their advertising leaflets?
Is it the low price that is drawing customers during tight economic times, improved (?) quality of their product, mass advertising that gets people thinking Dom’s or Eagle Boys when they think pizza (similar to people automatically thinking Coca Cola about drinks), or is it that people know that there is a cost for a delivery service?
Why is it that my sales are up 16% for the current quarter and my deliveries are up >20% leading me to just recently add another driver for Fridays and Sundays while I charge between $5.50 and $8 for delivery on top of premium prices?
I see no correllation in free delivery increasing sales, nor do I see people moving to pick up because a delivery fee is charged.
Maybe it comes down to that generally we are now time poor and see the convenience of delivery as a way of utilising our time better, even if it has a cost incurred, and/or that we are now conditioned to paying delivery fees be it pizzas, furniture, garden plants, even the daily newspaper.
Dave
So you apologize to the OP then go on to once again personally attack me. Ok then.
Moving on, I do not have any “numbers” but free delivery can work especially if you have one or many shops in the area charging for delivery. The way to make it work is using it as an advertising tool with your customers.
“Attention loyal PPG customers - why pay for service that has been free since the invention of pizza delivery? Call PPG Pizza now for better quality food AND ALWAYS FREE DELIVERY!!!”
PPG there is a big difference between attacking you and stating a fact. You offer nothing of substance. You whine and bitch to everyone about poor poor you. You have alot of anger built up from what you have described as a bad work environment working with one of your buddies that did not pay you well nor listen too your suggestions. Bottom line…he still owns the place and you are out of a job. Go firgure. You are a waste of everyones time here and I am done with you. I hope others follow suit. :!:
Oh, I like your attempt to comment on the OPs subject. Just a little advice… people tend to post on topics they have first hand experience in and not just their made-up playland! Working at a pizza joint in no way gives your the insite to owning one!
I do have firsthand knowledge of this. The store where I used to work/drive/manage went from free delivery to delivery charge and back to free delivery. I cannot really tell much about the first change, but when the ads hit for the switch back to free, sales spiked briefly and (as far as I know) did not go back down. (Tips improved too.)
Thank you for another post “too” report. Unlike some others, you have failed to realized that it doesn’t take an owner to have knowledge of the industry. Do you think I did dishes when we were slow? No sir, I was the one sitting in the back reading PMQ and its competition. The “insite” I did gain was from reading these magazines and working closely with the actual owner as he did quickbooks, weekly and monthly inventories, food orders, pop orders, comparative pricing, etc. Frankly, I am done explaining myself to you. No I’ve never owned a shop. Too bad, so sad.