Are delivery commissions driving you crazy? Yes, you could just decide to not offer delivery, but given that the recent Sense360 study found that 62% of delivery orders are incremental, that might be the basic ‘penny wise and pound foolish’ sort of decision.
So, what can you do? Given a choice, you’d rather have customers order takeout or delivery directly from you. But, are there other options other than completely changing your production model and cost structure? Let’s go back to perceived fairness (Part 2 of this series), rate fences (Part 3) and prospect theory (Part 4) to evaluate the use of rate fences, takeout/delivery pricing and channel pricing (charging different prices based on where customers place their order).
In part #5 of this series, I talk about rate fences for delivery, how framing can be used and about channel pricing. I hope you've found these of value! Here's the link.