The cost of a courier service vs. doing it yourself
Small businesses are busy places with limited resources and lots of demands. For many businesses, it can always seem like they’re perpetually one step away from disaster. There’s always a situation that requires a reaction – whether it’s a crazy customer request to something you never thought you’d ever have to do.
And as the owner of a business, you’re invested in the idea of ‘getting it done.’ If something needs to get done, you’ll just do it yourself or delegate it to one of your employees. Problem is – this doesn’t always work. And ‘keeping it in-house’ can prove to be overwhelmingly costly.
Deliveries are one of those areas where we frequently see companies try to do just that – save money by doing it themselves; but when in reality, they’re spending more than they should. So, today, we put a list of the costs that you’ll be incurring should you choose to make deliveries an in-house service.
The simple fact of the matter is that if you’re doing something, then you’re not doing something else. And that also applies to your employees. If you or your employees are delivering goods, then what are the things they’re not doing? Are you taking them away from their original job? Is delivering more important than them doing the aspects of their job they’re used to doing? This is called productivity cost – and from just the cost of things not getting done to paying overtime or asking for other employees to cover – it can get pricey.
Fuel and mileage
Gas ain’t cheap these days and realistically – it won’t be getting cheaper anytime soon. If You use your own car maybe it’s coming from your pocket. If it’ an employee using theirs, then well – someone’s going to have to compensate them for it.
You can’t just leave cars wherever you want in a big city. Cars need to be parked – whether on the street, in a garage or a lot. And parking in a city almost always costs money. And then if there’s a ticket or a tow? These are expenses that can add up quickly.
This is the big one. If you use a vehicle for business purposes, the cost of insuring it goes up. And insurance isn’t inexpensive either. That’s not even factoring in maintenance, repairs and the like. Long story, short – every vehicle on the road is going to cost you money to put it there.
So while these things seem like small expenses, when you add up the expenses, its becomes a lot more difficult to do business in the way and manner that you want to. And that’s going to make it more difficult for you to eke out a profit.
If you’re thinking about outsourcing your delivery services, give us a call today and we’ll be happy to discuss options with you. Until then, good luck!