Online Grocer HomeRuns.com to Double Delivery Charges.

Byline: Stephanie Stoughton

Mar. 27--Following a herd of Internet survivors into the dot-com reality zone, online grocer HomeRuns.com Inc. said yesterday it will more than double its delivery charges in a bid to become profitable next year.

Beginning Saturday, closely held HomeRuns.com will raise service charges to $5.95 from $2.50. The Burlington company's price hike comes on the heels of Peapod Inc.'s decision last month to raise delivery fees in Massachusetts.

"I think a lot of these companies underestimated how much it would cost to deliver these services," said Janet Suleski, an analyst with AMR Research in Boston. "They were willing to take the losses to build their businesses. But now, it's time to become profitable."

Mixing good news in with the bad, HomeRuns.com said it will begin Sunday deliveries next week -- for a larger fee of $10.95 due to higher labor costs that day. The company will also offer a double-your-money-back guarantee on products and waive service fees for late deliveries. There's one caveat: Don't count on a waiver if there are a few inches of snow on the ground.

Chairman Robert Tarr Jr. said he expects the higher delivery charges and other changes, including HomeRuns' revamped Web site, to lead to profitability later this year in the company's Boston market and in the first half of 2002 in the Washington, D.C. area.

"The changes we are making are a direct effort to satisfy these evolving needs of our customers as well as ensure our company's longevity in the marketplace," said Alison Berglund, HomeRuns' vice president of marketing and business development.