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How should I price my services?

In this article, learn the differences between the two pricing options available for your Shopping and Delivery services.

Bree avatar
Written by Bree
Updated over a week ago

There are two Shopping & Delivery pricing models options: Percentage of Grocery Total or Flat Fee.

Shopping & Delivery Pricing Models

There are two Shopping & Delivery pricing models options:

  • Percentage of Grocery Total

  • Flat Fee

1️⃣ Percentage of Grocery Total

The pricing model that Dumpling recommends you use for typical Grocery Shopping and Delivery services is Percentage Pricing. Clients pay a percentage of the total grocery amount as their Shopping & Delivery fee. You can also set a minimum fee, to protect yourself from small orders.

We recommend 15% and a $15 minimum fee. This means the Shopping and Delivery fee will be 15% or $15 whichever is higher depending on the grocery total. If the grocery total is less than $100 you would earn $15, anything over $100 would be 15%.

Some things to consider: Percentage Pricing ensures that you will make enough money to cover your time and expenses without having to rely on tips to be profitable.

Selecting the right pricing can significantly help you build a sustainable business with repeat clients. You want to find a good medium that will allow you to properly be paid and that is also a fair price point for clients.

2️⃣ Flat Fee Pricing

With this model, clients pay a fixed shopping and delivery fee regardless of the size of the order. The majority of your earnings with this model typically come from gratuity, which is based off of the total amount of groceries purchased, and not always guaranteed because gratuity is optional.

Dumpling recommends using the flat fee model for restaurant delivery or delivery only.

Some things to consider: This may be a more familiar pricing model for clients coming from other Grocery Delivery apps. It allows you to lead with a lower price and you then make the majority of your earnings with percentage-based Gratuity suggestions- this is especially true on larger orders. Since Gratuity is not required, you do run the risk of having a Client not add Gratuity before or after the order.

3️⃣ Suggested Pricing and Gratuity

Suggested Pricing

When adding stores and services, you will be asked to select a pricing model for each one. Notice the “Use Suggested Prices” toggle, located beneath the pricing options? We recommend using the “Suggested Pricing” to maximize your monthly earnings, by capturing more new clients and retaining their business.

By moving the ‘Use Suggested Pricing’ toggle to ‘On’, you are not able to change the pricing details. If you would like to customize your prices, toggle this button to 'Off'.

Once turned off, you can set the percentage options and highlighted default gratuity percentage shown at checkout.

4️⃣ Gratuity

To change the default gratuity, click the ‘Add Button’ and select set your default by highlighting it in green. Clients can choose from your tip options or can select custom to add their own amount. Dumpling recommends staggering your gratuity options, such as 5, 8, 10 or 12%.

Clients can also choose to tip after the order is completed. A client that has selected this option, will be reminded to tip 30 minutes after the order has been closed. If the client forgets to tip, a pop up reminder message will appear the next time they open the dumpling app.

5️⃣ Additional Information

  • Business Earnings Calculator

    To help you hone in on what prices to use, and better understand when minimum amounts kick-in, Dumpling also has an Earnings Calculator tool. The Earnings Calculator allows you to simulate what your clients will pay, and what you will earn based on the pricing model you selected and the fees you have set.

    It's also important to understand what your clients will pay. This will help ensure that you are choosing a model that benefits you both, which can help increase your business, and show the benefits of your service over more expensive competitors. The Earnings Calculator helps give you a good idea of how much money you will make on an order and gives you an idea of how much your clients would be paying.

    How to use the calculator:

    1. Choose the Pricing Model you are using (Percent or Flat Fee).

    2. Select the Business Plan.

    3. Shopping and Delivery Fee field, enter your fee (Suggested 15% or 18%).

    4. Shopping and Delivery Fee Minimum field, enter your minimum fee (Suggested $15 or $18).

    5. Enter a Gratuity amount (if desired).

    6. Select an Average Grocery order size (Suggested $100 or $200).

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