Under-Budgeting Courier Jobs: Consequences and Solutions

As anyone in that line of business will be quick to confirm, delivery work can be a very profitable way to make a living. Its relatively high cost-profit ratio, especially when operating independently on a man-and-van basis, can often bring about considerable rewards for the dedicated driver, allowing him or her to live comfortably off the earnings of regular courier jobs.

Of course, it is not always that simple. More often than not, drivers will come across one or more stumbling blocks in their quest to make a living out of delivery work, be it something as simple as the need to deduct taxes from their earnings or something as unpredictable as a client cancelling courier jobs. These variants can and often do affect a courier driver's earnings, and professionals in the sector should keep abreast of ways to protect themselves against any eventuality.

Assume the Worst

One of the main ways in which haulage and delivery professionals can generate a financial 'cushion' to keep them afloat should anything unusual occur is through careful budgeting. Keeping track of expenditures and profits is a crucial part of running any successful business, but in a field as dependent on unquantifiable variables as delivery, it is particularly important to ensure the books are balanced accurately.

Unfortunately, the art of correctly pricing courier jobs is one that continues to elude many professionals in the sector, leading to situations where drivers may end up getting short-changed or hardly making any profit at all. Occasionally, drivers who allow for excessive flexibility with regards to quoting and prices may find themselves getting taken advantage of by customers, who will often seize any opportunity to be serviced at as low a price as possible. This is why it is important that delivery professionals remain aware of the correct way to price the different types of services they offer.

A good way to estimate what an acceptable price for a particular delivery job would be is to begin by looking at the miles-per-gallon consumption of the vehicle used. Some drivers tend to underestimate these values, often being exceedingly optimistic about how much fuel their vehicle uses – which in turn leads to quotes that are perhaps lower than they should be. While this is bound to help these drivers acquire more business, it can end up harming them in the long run, as it reduces potential earnings for any given trip.

Additionally, drivers should look at what type of job is required. Jobs requiring larger van sizes, several men to help with the loading and unloading, or which are required for the same day or urgent delivery should be priced differently - with the quotes in these cases, naturally, being higher. VAT should be quoted separately for businesses, but included in the overall price for private customers.

These are only a few ways in which drivers can ensure they are not underselling their services when quoting potential customers for courier jobs.