How does a "mom & pop" deal with delivery?

[system]

I’ve been doing research on how pizza deliverers get paid & it’s all across the board. From getting a low minimum wage plus part of the delivery charge if not all. But then, another question, how do you compete with those guys like Dominoes that have insurance packages, etc… Short of increasing the money, that’s all I can think of.

Also, can anyone enlighten me on the best way to deal with insurance? I’ve made several calls and most insurers don’t deal with it and say to stay away. But, so many other “competitors” deliver! The one insurance lady that said yes, she can, had age limitations of female and male drivers and they had to provide a higher insurance package and have flawless records. Seem unrealistic - unless I can guarantee the driver a great return.

Any ideas from anyone?

 

[Kris]

Well first of all don’t become overwhelmed by it all, if you look at each thing seperate it really isn’t too big of a deal or expense.

1st try calling your current insurance provider. If they aren’t willing to help you call an insurance broker. They will be able to find a provider. (To save cost you may want to get a total package price for all your insurance needs.) I find the insurance to be the most frustrating because most of us aren’t experienced in all the lingo but a good insurance broker will walk you through what you need and exactly what you need to do.

We can only hire drivers 18 or older with a spotless record. At first this was intimidating but after 12 years it really is no big deal. When they turn in their application we have listed on it… Do you have a clean driving record? Any tickets in last 3 years? If they answer no we don’t even call. If they answer yes we tell applicants to go to the local dmv and get their driving record (costs 3.50) and they have to bring it with them to the interview. If it is clean we interview. If not we don’t.

Once hired, they must fill out paperwork about their car and insurance. If they pay insurance monthly they must provide proof it is paid. If it is every 6 months they provide proof then. Again once the routine is in place it is no big deal it becomes automatic.
All our drivers know if any moving violations go on their record they can’t deliver anymore. Every now and again I pay the extra 3.50 and tell my hired drivers to go get me their records so there will be no surprises at the end of the insurance year. (If a driver ends up having a ticket when the insurance company reviews they will jack your rate up)

As for the cost we charge 99¢ for delivery, they make minimum plus tips plus a dollar for each run. At the end of the day it is great money.

As for the insurance, it is the cost of doing business. If someone said hey I will give you a dining room that hold 20,000 people but you need insurance you wouldn’t think twice about the cost. And in essence that is what you are doing. Expanding your dining room by thousands of potential customers. Sure at first there is a lot of costs involved but at the end of the day, we wouldn’t survive without delivery.

Hope this helps, good luck to ya.

Kris

 

[MM1]

You are absolutely right that you SHOULD insure yourself and that it IS tricky. I found 2, count-'em, two insurance companies on earth that will touch pizza delivery. They offer not only a “non-owned” driver coverage, but a complete pizzeria package that also includes general business and business liability if you are interested. It may not be cheap, but it’s nothing compared to what would happen if a driver injured someone while your car-topper logo was up on their roof…

The agent who started giving you criteria - she’s probably WRONG. The insurance company behind it would turn it down when they found out it was pizza, after wasting your time. At least that’s what heppened with MY agent who spent 2 months promising a plan before giving up!

Try http://www.concklin.com/pizza-industry.html or
http://www.fallbrook.com. Fallbrook is just a California affiliate of a national referral group of pizza insurers organized by www.pizzasure.com, but they’re doing OK by me.
www.hrh.com and www.calsurance also offer programs, but I didnt’ get very far with them for some reason.

Bottom line - you need a specialist. Check a couple, and good luck!! (really - not sarcastically).

MM