From pre-ordered holiday centerpieces to fulfilling the needs of last-minute gift-givers, florists can capitalize on deliveries that serve their customers and their business’s bottom line. The key? Ensure deliveries are efficient — and priced for a profit.

Delivery, when done correctly, should amount to 8 percent to 10 percent of total revenue, says Paul Goodman, MBA, CPA, PFCI, president of Floral Finance Business Services. By taking steps to project holiday delivery volume, develop delivery rates, and consider other delivery opportunities, retail florists can prevent deliveries from being a drain on labor and resources.

Project Holiday Volume

Forecast your holiday sales by looking at the previous year’s holiday sales and then adjust based on the current sales performance, Goodman says. If sales are up 10 percent for the year, assume holiday sales will also be up 10 percent. (To read about forecasting holiday sales in more detail, click here).

Once you know your projected sales, look to your point of sales system (POS) to determine what percentage of last year’s holiday orders were delivered. Adjust that percentage based on your sales forecast and then use your POS to determine the number of deliveries to expect each day and the number of drivers and vehicles you’ll need.

Set Holiday Rates

Delivery charges do not need to be static, Goodman says. Setting a competitive rate for deliveries during peak holiday times is something customers expect, he says.

To set holiday delivery rates you’ll need to know the standard cost per delivery for each of your delivery zones. The cost per delivery can be determined by calculating the hours a driver worked, how many miles they drove, and the number of deliveries made (the Society of American Florists’ education hub has an Excel Spreadsheet to help you calculate the cost per delivery). The calculation includes the cost of gas, vehicle maintenance and labor.

Double the cost per delivery to find your standard charge and guarantee a profit, Goodman says. “Just like anything, you need to have a margin to cover your overhead and make a profit,” he says.

Charging a premium near the holidays for providing customers with fast, convenient delivery options is becoming increasingly commonplace. To do this, many businesses add surcharges as the peak demand nears. For instance, you might add a $3 surcharge for deliveries made a day or two prior to the holiday, and $5 surcharge for pre-orders delivered on the holiday (Valentine’s Day, for example). Same-day orders delivered on the holiday should cost the most by adding $8 to the standard rate, Goodman suggests.

Look to Other Delivery Sources

There are a few options to supplement your regular delivery staff — and possibly cut costs and find efficiencies.

Goodman suggests thinking outside the box and looking to organizations that might be interested in volunteering in exchange for a charitable donation, such as churches raising money for mission trips or high schools holding fundraisers. Goodman cautions, though, that any store relying on drivers using their own vehicle should make sure they have non-owned vehicle coverage on their insurance policy.

Some shops are relying on third party delivery services such as Door Dash or Roadie. (Click here to read more about using third party delivery services). The Unlikely Florist in Venice, California, found efficiencies by turning to Roadie, says Claire Erwin, chief operating officer at the florist.

“Rather than driving we were able to take more orders,” she says. “We were able to keep our hands on the flowers. It really allowed us to scale in a way we were having trouble doing before.”

For more on profitable deliveries, watch Goodman’s webinar, “Strategies to Accelerate Deliveries.” The webinar is free for SAF members and $14.99 for non-members.

Sarah Sampson is a contributing writer for the Society of American Florists