What are you figures for Square on demand delivery settings?

[TheCreamist]

Hello!

I'm just curious to see what people are putting for their delivery & service fee's.  In my area I'm forced into Door dash so I'm paying 30% of the delivery fee and putting a $50 minimum order for free delivery.  

What are you guys doing for this?

Thanks!

[sayra]

Hello @TheCreamist,

Welcome to our Seller Community!

Great question! Maybe one of our Super Sellers in the the restaurant industry can help us by providing some insight if they use On-Demand Delivery with Square Online. @Donnie-M @LLCafe @GoGoGuest. 

[LLCafe]

We do our own delivery since a large portion of our orders are too large for DoorDash to deliver. But we charge our customers a minimum of $5 delivery for orders of any size and then increase the amount we charge based one how far they're away from us. If we used DoorDash On Demand we would pass the entire cost to the customer since that cost would significantly eat into the product margins.

[Donnie-M]

@TheCreamist We have the option for the partnership delivery turned on through our online dashboard.  I chose to put a $20 minimum on the order and split the delivery cost with the customer as a "promo".  The advantage to using the square integration is that the customer is 100% ours and the fees are less.

The key to looking at delivery through a partner is the cost has to be split 2 ways.  Part of the fee you should consider a "marketing fee" like you would do advertising.  This is where using square versus a pure door dash listing benefits you.  You get a reduced cost and you market through your website.  The other cost is "labor" and that is the dispatching the driver, paying the driver, etc.  No one pays a delivery person pure "tips" so there is a cost associated with delivery that is labor no matter how you do it, even if you hire your own people.  

The key to this working is, does the "marketing + labor" cost justify the extra business.  And is it profitable?  That is the question you have to ask.

So I don't get a ton of orders through our website, due to the nature of our business, but I like having the option with some restrictions on minimum order price.  We do 1 or 2 a day, but I have not done the marketing side to push the delivery, as I still prefer my immediate area customers and online pickup more.  When I have maxed that business out, then I think I would want to expand more with delivery.

But as a cautionary note, younger generation 20-30 something, use delivery alot more.  As our customer profiles age or shift, this may really change how we have to look at the delivery model and convenience.  I have noticed more and more, there is no army of cashiers anywhere anymore as technology has replaced by technology. (sorry got on a tangent).

I agree with what you did, and think that is the best way to handle it.  I want delivery to be there for the business I wouldn't have otherwise.

[TheCreamist]

Hey Donnie,

Sorry for the late thank you, but thanks for sharing and taking the time to write the well written response.

Cheers