We offer a Free Delivery promo during holidays, and in some advertising. We have found that it is a proven tool in generating orders, given the market we are in...need to compete! No, we do not take it out of the order. Nor do we hide it somewhere - every cost to the customer is shown on the invoice...no skimmin' off the product!!! I set up a special product code for each FD promotion I use, with their own G/L numbers. That way, I can track the cost of each promotion, and see if it works. Yes, can get costly, but we manage. The cost of fuel, wages, vans, etc. someday will prevent this practice, but for now, we use it. We do have some rules with it as well: usually a $40~50 min order (depending on the media used, time of year, etc.), no timed deliveries, not valid on wire outs.
About the ''cross the street' deliveries...our policy is if it's in the block, or within walking distance, we do not charge for delivery. If it has to go on the van for ANY reason, delivery charge applies.
Some valid points on this post/venting venue! But, as others have said, FD works for some, and not for others. AND, is often abused by the cheats of the world...
- H.