i am about to sign up with 3rd party delivery vendors. any advise?

Discussion in 'The Think Tank' started by boston09, Sep 18, 2019.

  1. boston09

    boston09 Member

    Joined:
    Sep 10, 2009
    Messages:
    73
    Likes Received:
    5
    to be exact - ubereats, grubhub, slice, maybe doordash. please note that its not a thread on if I should sign up or not, I came to yes decision already. my question is - what should I do before I sign up (my google listing I already claimed) or if there is a tactic to negotiate a lower commission rate or if it makes a difference as to who to contact and sign up with first...? my plan is to sign up with 1 first, another next month, another following month..etc. Also... why not pitch to all their customers my own online ordering with a coupon code when they order from mu own website?( stick a flier inside take out bag) I realize that its their loyal platform customers , but if even 10% sign up on my page or load my app - that's a score, is it?! thank for all your thoughts…
     
  2. RobT

    RobT Active Member

    Joined:
    Jun 14, 2006
    Messages:
    840
    Likes Received:
    120
    Location:
    Long Island, NY
    I’m on most of them. Everything is negotiable. The lowest i think they go is 25%. Just be prepared their links will be attached to your google page.


    Sent from my iPhone using Tapatalk
     
  3. Rico

    Rico Active Member

    Joined:
    Oct 24, 2013
    Messages:
    185
    Likes Received:
    71
    Location:
    Niskayuna, NY
    They do more then just put there links on your Google page. Be prepared for them to place google ads to pop up ahead of your website, they will take over your trip advisor page basically anywhere someone would be able to place an order directly from you you will find one of there links there. Your online orders will drop dramatically to the third party sites. I highly recommended you think this over again. I’ve spent the last year working on getting my customers back and I’m almost there. Offering them discounts to your site does not work. I gave out 500 vista print business cards with a 10 percent off and a $2.00 saving in delivery charge offer and got very few redemptions. They start you off at a lower commission rate then they start selling you pitches like you not coming up on the first page at your rate, if you increase it to this you’ll see this amount of more orders per week or we are phasing out that rate the lowest rate you can now choose is. These companies are not here to bring you business they are here to bring your customers to their business.


    Sent from my iPhone using Tapatalk
     
  4. johnnypark123

    johnnypark123 New Member

    Joined:
    Jun 23, 2016
    Messages:
    11
    Likes Received:
    2
    Location:
    USA
  5. KatMan2

    KatMan2 New Member

    Joined:
    Aug 6, 2019
    Messages:
    1
    Likes Received:
    0
    Location:
    toledo
    y6Rico,

    How do I get a 3rd party (Doordash) out of my hair? I do not have a relationship with them, but am concerned that they are damaging my reputation and, long term, going to cost me business. When performing an internet search for my shop, the first thing that comes up is YELP, followed by a tag and link for On-line ordering (w/ DD symbol). None of this is associated with my site. Below all this is the link to our site. I currently do not have on-line ordering but am working towards that in the relative near future.

    i contacted Google, they were no help, told to contact DD. Contacted DD and that went no-where.
     
  6. Rico

    Rico Active Member

    Joined:
    Oct 24, 2013
    Messages:
    185
    Likes Received:
    71
    Location:
    Niskayuna, NY
    What’s the name of your place? I didn’t see any links in your post.


    Sent from my iPhone using Tapatalk
     
  7. MPS

    MPS Member

    Joined:
    Jan 21, 2015
    Messages:
    37
    Likes Received:
    8
    Location:
    NJ

    Call Doordash directly and let them know to remove you from their system.
     
  8. boston09

    boston09 Member

    Joined:
    Sep 10, 2009
    Messages:
    73
    Likes Received:
    5
    guys, I was mostly asking what to do to someone (me) who already took decision to do business with 3rd party. while everyone is welcome to say what they think, I need more advise as like someone mentioned they ll take over my TripAdvisor page. now that I know they ll be after it, I went and registered it to myself. now that I know they might do google ads campaigh, I might start ahead of them. what else?? what else should I do before signing up with them? someone mentioned they ll raise my rates down the road, now knowing this I ll try to negotiate a rate that can not go up if possible... what else to pay attension to? I also don't really understand why its such horrable idea, as I can just raise my prices on their pages, so if I need to pay them 20 percent fee, well I ll just raise my prices (not my prices, but my theirs prices) so customer will actually end up paying, not me...
     
  9. sparrowspizza

    sparrowspizza Active Member

    Joined:
    Nov 8, 2016
    Messages:
    156
    Likes Received:
    32
    Location:
    richmond, VA
    You cant raise prices with Grubhub, ubereats and doordash. They will set up your initial menu. If they find out they will make you fix it.

    Do you have you own delivery system?
     
  10. Rico

    Rico Active Member

    Joined:
    Oct 24, 2013
    Messages:
    185
    Likes Received:
    71
    Location:
    Niskayuna, NY
    Start out with the lowest commission that they offer in your area. You can always go up but they give you a hard time when you want to drop down (hits your account advisors pockets when you drop your rate so they will tell you anything to keep you higher. If your in a popular area your rate is probably going to be high. I would sit down and take a look at what it’s going to cost you for a $30.00 order. If they’re getting your for 30% that’s 9.00 off your order so now your at $21.00. If your food cost is at 30% that’s another $9.00 your at $12.00 and you labor cost is let’s say your high volume place and we’ll go with 27% (taxes included) that’s another $8.10 that leaves you with $3.90. Is it still worth it for you?


    Sent from my iPhone using Tapatalk
     
  11. sparrowspizza

    sparrowspizza Active Member

    Joined:
    Nov 8, 2016
    Messages:
    156
    Likes Received:
    32
    Location:
    richmond, VA
    $3.90 left. Divide up the fixed cost. Lets say your fixed cost is $2100, rent, utilities, insurance, accountant, etc. The store does 800 orders a month (I know guy doing these exact #'s :). Thats a fixed cost to each order of $2.62. That leaves $1.28 profit per order. $1024 per month.

    Bodegahwy said "take all the money your paying them, and invest it in your own advertising".
     
    Rico likes this.
  12. George Lithoxopoulos

    George Lithoxopoulos New Member

    Joined:
    Oct 24, 2019
    Messages:
    7
    Likes Received:
    0
    Location:
    Boston
    just sign up all of them at the same time no reason to wait....

    one thing that I found because I watch the statements like a hawk is they told me it would be 27.5% fee but they were talking about 31% called to ask and they said it was because of a transaction fee not previously included in the 27.5 even though when I asked the sales rep who was signing me up if the 27.5 was all they wold take he said yes so they lied and then a month later they started to charge me 43 percent and when I called to ask why that was the person told me it was for a custom menu fee and said she never saw that before so I called the amount manager nanny phok and told her to close my account I was fed up with worrying about that last thing I need is to stress about if they are playing with my money
     
  13. Rico

    Rico Active Member

    Joined:
    Oct 24, 2013
    Messages:
    185
    Likes Received:
    71
    Location:
    Niskayuna, NY
    I was hoping that the $3.90 would be enough to change his mind.
     
    sparrowspizza likes this.
  14. boston09

    boston09 Member

    Joined:
    Sep 10, 2009
    Messages:
    73
    Likes Received:
    5
    3.90 off 30.00 that's 13% profit. how is that not great?? that's around what average to well run pizza shop does. I didn't really calculate fixed cost, but that's because its not getting bigger whether im with 3rd party services or not.. and if I break it up and account for fixed cost like Rico did, well, now my profit on my "not 3rd party orders" got bigger, cause now im making more tickets .. as for spend all this money on my own advertising... that's a very valid point and I have tried... and didn't succeed... I might try again...
     
    sparrowspizza likes this.
  15. Rico

    Rico Active Member

    Joined:
    Oct 24, 2013
    Messages:
    185
    Likes Received:
    71
    Location:
    Niskayuna, NY
    If you want to look at it that way then just know that when you give GrubHub 30% you lost out on a 43% profit per order.


    Sent from my iPhone using Tapatalk