Pricing Jobs

Hi, I have been a delivery driver for over 12 years but have recently decided I would like to work for myself. It's a daunting prospect as despite my varied experience doing such work I am a novice in terms of running my own business!

I'm looking to start with a small van like a Berlingo. Looking around many of the courier forums I've noticed people quoting pplm rates as low as 40p. Granted these rates are for work as a subbie to other courier firms and not their own customers. One gentleman was even quoting 25ppm!! God only knows how he manages to turn a profit?

I was just curious what a fair mileage rate is for a small van?

Any advice would be gratefully received!

Many thanks, Stu

Put a bit of effort in mate. Work out what it's going to cost you per mile to run a small van then add enough of a mark up to cover your other business expenses. Then you'll know what to charge.

Oh! Don't forget to make a profit too.

Regarding costs Depends on how you look at it.. As a subbie it doesnt cost.. Its just you, your vehicle and your running costs, but you depend on others to give you work. As a business its a lot more plus the additional vehicle running costs.

You can consider running from home which has less overheads than from a premises.

You then have to look at how to get the end user to you (internet, website, advertising etc) as somebody has to pay for all this, as none of the above or below will pay for itself. Unless your wedged up.

Plus the cost of keeping and running a van and then additional cost of fuel, to give you an Idea my van (berlingo 1.4petrol) costs on fuel alone 15-20ppm to run, But costs less to maintain than a diesel

Remember you will be coming back empty as well so consider a backload to pay for the fuel cost and encourage more profit

So all in all it adds up.

Ive never run a business before, and like you seemed daunting, but I wont turn back to earning money for others now. I actually started with Nothing and still got Nothing.. lol

This is the start of my third year of trading, Im now slighly in profit but no tax to pay from my second year, so my accountant says, but she is concerned over the major outlay of insurances and advertising, but its the nature of the game..

Good Luck!

Manadon Despatch said:

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Oh! Don't forget to make a profit too.

Wots a 'profit'? Something you eat maybe...

Thanks guys, all valuable advice.. I suppose the trick is to price it sensibly enough that your not making a loss but also not to price too high that you never get any work, common sense really. I just thought there would be a ball park figure for small/big vans that I could base my workings on.

Which courier "forums" did you see quotes as low as 40pplm?

If you are talking about the sites people receive quotes for things they may have bought to be moved, the person offering the service would have build up a "run" using several low paying jobs to create a days run, not an easy thing to do for the inexperienced and can always go very wrong easily, or this quote may be as a "backload" for a job he already has going past/near/to the collection point and returning back towards his base.

If you do this sort of work ensure the customer is clear on the service you are offering

Rates vary throughout the country

I think it was on codforum, one of the threads on there, not totally sure though?

40pplm I pay the lad more than that to pop out to get some milk!

You don't quote on COD so can't be there

Haha! Exactly what I thought.. I was thinking 65-75p would be a fair rate for a small van. Can you charge a round trip at that rate?

I wouldnt get out of bed for .40pplm, but would backload on it..

Round trip of maybe 30/40 miles maybe but if anyone is prepared to pay £700 +/_ for a 500 loaded mile run let me know who he is and you'll be on 10% commission.

Can you charge a round trip at that rate?

We go from the sublime to the ridiculous.......(were's the lol smiley)

In any other line of work, if you need to claim expenses for mileage costs in a car (which could be doing 60mpg and wouldn't need H&R etc), I believe the rate is about 45p per mile each way. In other words you make a better profit than you normally would in this job!

Sorry mr MK, missed that off! Lol :)

CAMVAN said:

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In any other line of work, if you need to claim expenses for mileage costs in a car (which could be doing 60mpg and wouldn't need H&R etc), I believe the rate is about 45p per mile each way. In other words you make a better profit than you normally would in this job!

No the Government has guidelines its .40p minimum for cars and .22p for motorcycles..

moray couriers said:

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Round trip of maybe 30/40 miles maybe but if anyone is prepared to pay £700 +/_ for a 500 loaded mile run let me know who he is and you'll be on 10% commission.

Arnt you quoting for big van rates there @1.40pplm

Did someone mention a profit a roll mmmmmm

Nowt to spend your money on, in Yorkshire

We dont have money in yorkshire cos we subbie for peanuts. No thats not really true I was joking as always. I will bring an intelligent suggestion one of this days to a topic. Oooops

MK Bikes said:

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Can you charge a round trip at that rate?

We go from the sublime to the ridiculous.......(were's the lol smiley)

Your not on shed now Tony...

I don't mind anyone asking questions, no matter how stupid they appear to be

There are useful forums and there are forums filled with shite

Mileage rates differ depending on many things:-

Knowledge ( do you know 40p a mile is a piss taking rate or not)

Experience (Whether you're naive enough to work for the big boys at ridiculous rates)

Area (Are you in an area with 100's of Couriers or where an area with none)

You answers to these will determine which type of courier you become

BusinessBuddy said:

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We dont have money in yorkshire cos we subbie for peanuts.

Speak for yourself.. as the old saying goes "pay peanuts you get monkeys"

GMC I was being my usual sarcastic (must be the yorkshire blood) self.

Gas Motorcycle Couriers said:

Arnt you quoting for big van rates there @1.40pplm

The question was asked if he could charge both ways hence that price

Yes i know the question was asked for a round trip, but I must have misread it, as I see it as 1 big price for the loaded, nowt about empty, which is how I got my figure, or halve it for the return..

MK Bikes said:

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You don't quote on COD so can't be there

40p has been mentioned in a couple of threads