# How to Calculate the Cost of Delivery of Your Product

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Why calculate: freight is one of the items that most add cost to the final price of a product. In Brazil, with the territorial extension that we have, it is difficult to proceed with success in the enterprise, if this factor is forgotten. If you have a trade or small industry, you need to have the real notion of how to form the price of a product. Doing only the calculations of purchase price, profit margin, production and forgetting to put in the amount the final cost forecasts with the delivery of the product can cause imbalance in your accounts.

The result is that often the advertised price increases after the delivery calculation, depending on the location. To make your product more attractive and avoid confusion for your customers, it is important to know how to calculate the cost of delivery of your products.

How to calculate: there are many factors to take into account when choosing a delivery medium. First, on how many days will your company deliver in an ordinary month, as in the example below.

The next decision is whether you will opt for an outsourced service or make deliveries with your own vehicle. Are we going to know the procedures for each of these cases?

## 1. Deliveries by third parties

Some forms of delivery have different geographical restrictions. For example, motoboy companies deliver in their region and Sedex to all Brazil. In this case, you need to create a spreadsheet for each geographic scope. The data to be collected are mainly:

• Who would be the suppliers;
• What type of cost is involved (if it is per delivery or per period);
• Maximum delivery capacity;
• Final value per month, for the need you have.

## 2. Own vehicle

If you are thinking of making the decision to own vehicles, add the driver's salary and benefits to the average monthly cost of the form of delivery. Do not forget to compute expenses like IPVA, insurance and fuel in your average monthly cost. Add tolls and ICMS if necessary. If you have to pay some help for the service, do the same process by adding the value of the remuneration to the price, dividing by the volume to be delivered. This is an extremely important factor in determining if it is not worth using the services of the Courier, or even hire companies specialized in freight, which already have expertise in the field, with management tools to reduce costs through the greater volume they carry .

## 3. How to analyze

Once you have made the specific calculations for each option, gather them in a spreadsheet, filling each field as in the example below.

With this data, you can project costs in a variable way, considering daily, monthly or delivery figures.

With the monthly amount, make a projection for the coming years. It is a way of realizing if an option that at first seems more expensive can compensate in the medium or long term. In our example, deliveries with your own car would be worth it from the 11˚ month.

A spreadsheet like this can help a lot to figure out the cost of delivering your product and evaluate the best option for your e-commerce, commerce or small industry. How about using the delivery cost worksheet from light? It may be a faster way to make this important decision!

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Administrator and turismologist, passionate about the possibilities that Excel gives to managers, entrepreneurs and students. He is the managing partner of the spreadsheet department at LUZ - Spreadsheets (luz.vc) and is responsible for the development of spreadsheets with business and personal focus commercialized in its website. He also teaches online Excel courses (cursos.luz.vc) and likes to help thousands of planners through the LUZ Forum and Blog.