Bundling Delivery Fees into Product Pricing
Delivery fees are invoiced separately from orders in GrownBy. This saves you money in fees in the case that the customer cancels an order or claims a vacation week.
Some farmers prefer to have their delivery fees bundled into their product pricing so that everything is paid for at once. Since there is a $.30/per credit card transaction fee from Stripe, bundling fees into other invoices also saves money on fees. While it is not practical to bundle fees for a la carte ordering, it works well in the case of shares. Read more below to understand how delivery fees work and how to add delivery fees to your pricing.
Some farmers prefer to have their delivery fees bundled into their product pricing so that everything is paid for at once. Since there is a $.30/per credit card transaction fee from Stripe, bundling fees into other invoices also saves money on fees. While it is not practical to bundle fees for a la carte ordering, it works well in the case of shares. Read more below to understand how delivery fees work and how to add delivery fees to your pricing.
How Delivery Fees work in GrownBy
Click here for a comprehensive article about Shipping and Delivery.
Delivery Fees:
Bundling Fees into your Prices
Delivery Fees:
- Are invoiced separately from the Order itself.
- Are invoiced and charged on the day the order is distributed; not on the day the order is placed (unless those are the same).
- Orders with the same delivery location and day are bundled together and only charged one fee.
- Customers receive email notifications of fees early morning on the day of the delivery.
- If a customer claims a vacation week or cancels the order, the delivery fee is voided.
- If the order is being paid for with farm credit, a credit card is required to complete the order. The credit card will be used as a backup payment method for the fee in the event that the shopper doesn't have enough farm credit to pay the fee at the time of distribution.
Bundling Fees into your Prices
In order to avoid fees being invoiced separately, simply build them into your per-distribution pricing. If you have some shares which have fees attached to them and some that do not, you need to create separate products. Here's an example from Ridge to Reef Farm:
These three products represent different fee/logistics costs to the farm. St. Croix carries no additional cost or fee, St. Thomas carries a $10 fee, and St. John carries a $15 fee. So, shares on St. Croix are $50/share, St. Thomas's are $60/share, and St. John's are $65/share. This pricing reflects the difference in logistics cost to deliver to these different locations.
Note: If you have custom shares but want your customers to receive the same value in product, you can still price them differently to account for delivery fees. For custom shares, the price and the value of product customers receive are separate. Read more about custom shares here.
Still have questions? We have answers. Email GrownBy support directly at support@grownby.app, or schedule a one-on-one call with one of our team members. A real human with farming experience will get back to you as soon as possible!
Note: If you have custom shares but want your customers to receive the same value in product, you can still price them differently to account for delivery fees. For custom shares, the price and the value of product customers receive are separate. Read more about custom shares here.
Still have questions? We have answers. Email GrownBy support directly at support@grownby.app, or schedule a one-on-one call with one of our team members. A real human with farming experience will get back to you as soon as possible!
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