Fair Milage Rates

Having spoken to many couriers it occurs to me that there is a huge difference in the rate people charge per mile. For me not being in this game for too long what would all you experts consider to be fair reward for your efforts in providing the customer with the service you want to provide.

Mornin Philip

This question crops up quite regularly and i'm afraid there's no easy answer.

I will give you some history though...see if that helps you understand why.

Back in 1998 driverpay for a small van was around 45p per mile..and having come from a 2 year stint as a controller in a taxi office where the going rate was £1 a mile, it came as a bit of a shock I can tell you.....but I took the view that couriers could co load, where taxis couldn't so that must be it.

That pales into insignificance, however, when you look at the rates of today.

Using the same fuel v driverpay equation for 1998 to now would make the rate today around 90p per mile and it isn't.

This is down to all of us not having the balls to charge the proper rate for the service you provide for us and that is due to the big boys (CitySprint et all) charging less than £1 per mile to their customers, and sometimes as low as 85p per mile, and thereby making it impossible for us to charge a rate that makes sense for all.

The transport sector has been experiencing this for years, and the Courier branch of this industry hasn't been able to escape it either.

We all make smaller margins and work harder for less....its everywhere you look

So back to your question....what is a fair rate?

There isn't one....the question should be what is a rate i can charge and still get some work

And that rate is anywhere from 70p per mile to £1.20 per mile and everywhere inbetween

and with citysprint and the like as low as 47p per mile!!!!!

What he said

I consider this quite a pointless question really Each company ,each O D should know what they should be charging and you have to ask a few questions if they don't

Rob said the rates are the same as 1998 and this fact alone highlights the fact that the profit is not their anymore

Morning Bob

I haven't said the rates are the same as 1998 (unless you're looking at Citysprint -and if you're stupid enough to work for that rate then there really is no hope for you)...but i HAVE said they're not what they should be. They are around 20-25% less than where perhaps they should be in camparison, but thats still around 50% higher than the 98 example I gave Bob.

Not good news, but certainly not 1998 rates

Charge whatever makes you work worthwhile Phil. Dont make the mistake of underselling ya sen.

surely you have to work out your over heads and charge more than it's costing you?

Thanks gents for the insight to the running costs