Ask the Collective

How should we structure delivery charges for orders that fall between courier and pallet minimums?

Members typically use one of two approaches: either apply a flat delivery charge based on the courier service used, or build tiered pricing into the base cost of goods to reflect logistics variations by volume. **Flat courier rate approach:** - **DPD** — members use this for smaller parcels with a low, fixed delivery charge that customers accept without complaint; reportedly competitive rates available - **APC (parcel service)** — works well for orders up to around 28 cases; approximately £7 plus the cost of a decent postage case for roughly 12 bottles **Tiered pricing approach:** - Build different price points into your COGs for orders under a certain volume threshold vs. over it, with the difference reflecting logistics costs rather than adding surcharges per order - This avoids the friction of ad-hoc delivery fees **The challenge zone:** Orders between 18–60 cases are problematic—too large for economical APC dispatch but below the pallet threshold (typically 60 cases). Members note that pallet costs (around £70) become uneconomical for smaller volumes when charged separately, and customers resist delivery surcharges on smaller pallet orders. **Key caveat:** Attempting to charge separately for a pallet on small orders (e.g., 10 cases) "didn't go down well" with customers; building costs into base pricing or using courier services appears more commercially successful than transparent surcharges.