How to Accurately Price Your Courier Work
Over and under pricing are pitfalls that any courier company can fall into. There needs to be the right balance between your cost of operation and customer satisfaction.
By having a proper understanding of your customer’s needs and the resources that you have available, calculating your quotes does not need to be guesswork.
Mileage. This may seem like the most obvious factor to take into consideration but it is surprising how often this can become your greatest pitfall. If your distance calculation is incorrect, this can easily add or subtract hundreds of pounds to your courier work price estimations. Always ensure that you use an accurate system to measure the route distance and the amount of fuel you will be using. Vehicle wear and tear also needs to be taken into consideration and factored into the overall mileage cost.
Size and type of delivery. No two loads are the same and having a good understanding of the items to be delivered will help to keep this cost factor accurate. Make sure your courier work has a set pricing structure for oversized items and stick to it. If the individual items are over the dimension size that you have specified, be sure to add in additional cost for the space lost which could have been used to store another package.
Discounts. It’s a common practice to offer discounted prices for your courier work with repeat customers. This goes a long way to developing and sustaining long term relationships. Offering a discount may reduce your short term profit but will show benefit in the long term when your customers return for repeat business. It is also beneficial to inform new customers that you offer discounts if they choose to use your services on a regular basis.
Binding and packaging. It may not seem like you use many of these materials on an individual delivery basis, but over the course of several weeks the cost of securing and wrapping items can become quite substantial. Not all types of courier work need to offer this facility, but if your company offers this service be sure to add it to the total costing.
Airport surcharge. You will need to add this charge as airport deliveries and pickups are often subject to delays, custom checks and multiple security checkpoints. These delays can add up quickly and will result in idle time and lost revenue unless factored into the costing.
As you will always want your courier work quotations to be accurate and as competitive as possible, always try to adhere to a set list of pricing guidelines to make sure your customers will keep coming back to you time after time for a great value service.