If you plan to open a courier service business, figuring how much to price for the delivery is indeed challenging. You don’t want to overprice as you may lose potential clients. Offering lower price may not be a great idea as well as the entire shipment may be costly. That’s why you need to know courier costs, so prices remain reasonable, and you stay in business. Certainly, you want a fair profit to earn more new customers. Here’s how this article can help:
- Know How Much Your Competitors Charge: You can contact another courier service in your area to verify the rates. If there are many, you can utilise an average for a competitive price. Let’s say there are three competing courier services in your area, check the average and make it what you’re going to offer your clients. Also, beware of charging less to customers as they may wonder. Remember, lower costs don’t necessarily mean the best. It also doesn’t mean you’re going to profit from the price.
- Charging by the Hour: To provide a quote for your customer, you need to know how much you are priced per hour. To verify an accurate hourly rate, get quotes from competitors and find the average.
- Heavy or Bulky Packages: When you talk about size, courier services charge more for heavy or bulky loads. The best way to obtain the courier costs is having an overweight fee. For instance, you have a delivery charge that applies to items below 50-pounds. You may charge an additional fee if the item is over 50-pounds.
- Rush and After-hour Orders: While many deliveries are scheduled during business days or weeks, some courier services require extra attention or speed for orders that need to be rushed right away. It’s normal to charge an extra for such delivery.
- Waiting Charge: There are instances where the courier service arrives to pick-up a package for delivery and find that the customer isn’t ready yet. This then will slow down the delivery process and may hamper the schedule. To keep up with the business, a courier service may charge fees for waiting.
So, these are few guidelines for the courier costs when planning to open a courier service business. These may help you make profits the moment you start your business.