Every business has its fair share of costs. Utility bills, stationery, office space and computing are expenses that almost any company you can care to name will have. In the logistics industry, there are specific expenses that each business will have to foot the bill for, from admin to transportation.
Arguably the biggest expense is transport. For long haul deliveries, vans or even haulage trucks are needed. Even used models can be expensive – in the US market, the average used truck price for April 2017 was $37,451 ( 29,335). The cost of buying vehicles is high, as is insurance and fuel – for a whole fleet, you will need to set several thousand aside. Running transportation for a business means that everything must be looked at scrupulously to make sure that it is efficient, this includes using related websites like https://www.lytx.com/en-us/resources/articles/understanding-csa-scores for software and information that can prove beneficial for transportation needs. Check your finances and check your software.
Price of Petrol
Petrol and diesel costs tend to fluctuate on a daily basis. Right now, petrol costs 1.16 per litre and diesel is 1.17 per litre. For a 50-litre tank that needs to be filled every few days, that eats into a courier company’s budget. Choosing a vehicle with higher than standard fuel economy will slice a few pounds from your final bills.
Staying with transport, on-board technology is a must for couriers. A satnav system for each vehicle is needed, so that drivers can find the delivery point without getting lost. These can be bought for under 100 per system when purchased in bulk, but are worth every penny.
Elsewhere on the technological front, order processing software is needed to track every single delivery. Companies like Myparceldelivery use it for mapping addresses and delivery routes, as well as for notifying customers about when their package(s) are due to arrive at their doorsteps.
Aside from vehicles, fuel and tech, there’s all the legal stuff that couriers need to pay for. Keeping vehicles road legal is one. There are licences for each vehicle, annual MOTs and road taxes to pay for. Smaller vans weighing up to 3,500kg can be driven by anyone with a standard driving licence, but special ones are needed for bigger vans and trucks.
Another major legal cost courier firms have is insurance. Being bigger than cars, vans cost a little more to insure. However, by spending a few minutes on a price comparison website, it is possible to get them covered for not much more than your average hatchback!
Finally, there’s the cost of hiring employees. By law, every company must pay the minimum wage, as well as additional costs such as National Insurance. Be sure that you’re paying the right amount; hire an employment lawyer if you aren’t completely sure what to pay.
Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.