Stop the press...

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Preston Courier Co Ltd

6254
Original Poster

Just posted a job from Sutton In Ashfield to Nelson, and not only did I get an acceptable price within 2 minutes, somebody else called just after I'd given the job out.

Wish it was like this all the time :)

Speed Couriers Nationwide Ltd

10314

Unlike me that had 2 quotes but obviously from those that haven't heard of trade rates

Preston Courier Co Ltd

6254
Original Poster

It varies by job type, but I'm not always after a trade rate

Most of the time I just need it covering ASAP because I'm out of drivers or in this case the customer needed it back quickly so would prefer someone in the area collected it rather me sending someone from Preston to get it and it taking 2 hours longer.

If that means a courier company charges me normal rate I can then give my customer the option to pay a bit more and do it that way or pay our normal rate and we send someone.

In this case it was an owner driver, he got paid more than the standard trade rate, my customer pays the normal amount, I make a little less but everyone is happy.

PC Haulage Services

99

As an owner driver i quote sameday/urgent/asap jobs with direct delivery to cover the whole journey as there is little chance of finding a backload to cover the return journey non urgent or jobs that have a couple of days lead time quote accordingly as you have time to plan a return load, yes i'm new to this and learning everyday but what would be an acceptable average trade rate be

Cheers Paul

Andy McTighe

796

Ah, the 64,000 dollar question that nobody with work will answer.

RAPID LIGHT TRANSPORT LTD.

2894

Andy McTighe said:


Ah, the 64,000 dollar question that nobody with work will answer.

Why?

I have never understood this 'going rate' thing

Just quote what YOU think is good enough to make a decent profit. If you don't get it, move on, but ffs do not do it cheap and think you will get something back to make up for it.

We quote different prices for different customers, depending on numerous facts. If we are not too fussed about doing a particular job we price it very high :) If it comes off, it makes it more bearable.

I am puzzled why so many have difficulty pricing, it is fundamental to running a successful business

PC Haulage Services

99

RAPID LIGHT TRANSPORT LTD. said:


Andy McTighe said:


Ah, the 64,000 dollar question that nobody with work will answer.

Why?

I have never understood this 'going rate' thing

Just quote what YOU think is good enough to make a decent profit. If you don't get it, move on, but ffs do not do it cheap and think you will get something back to make up for it.

We quote different prices for different customers, depending on numerous facts. If we are not too fussed about doing a particular job we price it very high :) If it comes off, it makes it more bearable.

I am puzzled why so many have difficulty pricing, it is fundamental to running a successful business

Thats what i do price it up on milage, tolls, time of day and how urgent the job is just dont get this "trade rate"

RAPID LIGHT TRANSPORT LTD.

2894

PC Haulage Services said:


RAPID LIGHT TRANSPORT LTD. said:


Andy McTighe said:


Ah, the 64,000 dollar question that nobody with work will answer.

Why?

I have never understood this 'going rate' thing

Just quote what YOU think is good enough to make a decent profit. If you don't get it, move on, but ffs do not do it cheap and think you will get something back to make up for it.

We quote different prices for different customers, depending on numerous facts. If we are not too fussed about doing a particular job we price it very high :) If it comes off, it makes it more bearable.

I am puzzled why so many have difficulty pricing, it is fundamental to running a successful business

Thats what i do price it up on milage, tolls, time of day and how urgent the job is just dont get this "trade rate"

And that is the way to do it!

Not difficult is it? :)

Phax Sameday

2344

Does the price change with time of day?

021 SAMEDAY

3721

PC Haulage Services said:


As an owner driver i quote sameday/urgent/asap jobs with direct delivery to cover the whole journey as there is little chance of finding a backload to cover the return journey non urgent or jobs that have a couple of days lead time quote accordingly as you have time to plan a return load, yes i'm new to this and learning everyday but what would be an acceptable average trade rate be

Cheers Paul

That is a very sensible approach, often known as round trip pricing. I would expect you to be quoting in the region of 2.5 to 3.5 x your fuel cost for the whole job including getting back to base.

Andy McTighe

796

And what colour socks the driver is wearing, the price you get the job at is the lowest one offered within the time they have to get it covered in - usually. Anything else is sanctimonious bs.

I just offer the same rates all the time. Some you win, some you don't.

Phax Sameday

2344

sanctimonious bs. Geez Andy thats a big word for mtvan innit. True though.

GJC EXPRESS COURIER

471

PC Haulage Services said:


RAPID LIGHT TRANSPORT LTD. said:


Andy McTighe said:


Ah, the 64,000 dollar question that nobody with work will answer.

Why?

I have never understood this 'going rate' thing

Just quote what YOU think is good enough to make a decent profit. If you don't get it, move on, but ffs do not do it cheap and think you will get something back to make up for it.

We quote different prices for different customers, depending on numerous facts. If we are not too fussed about doing a particular job we price it very high :) If it comes off, it makes it more bearable.

I am puzzled why so many have difficulty pricing, it is fundamental to running a successful business

Thats what i do price it up on milage, tolls, time of day and how urgent the job is just dont get this "trade rate"

Why do you charge a different price in the afternoon then you would in the morning?

Andy McTighe

796

PHAX said:


sanctimonious bs. Geez Andy thats a big word for mtvan innit. True though.

LOL Phil, I know some bigger ones but I save them for the Shed. I just get a bit tired of seeing newbies talked down at when they are just asking a straightforward question.

PC Haulage Services

99

PHAX said:


Does the price change with time of day?

Well it does if i have just put my feet after tea and settled in for the night watching goggle box lol

PC Haulage Services

99

Andy McTighe said:


PHAX said:


sanctimonious bs. Geez Andy thats a big word for mtvan innit. True though.

LOL Phil, I know some bigger ones but I save them for the Shed. I just get a bit tired of seeing newbies talked down at when they are just asking a straightforward question.

I would say i'm not being talked down to more than likley its been asked a lot on here and other forums and as for a newbie yes i am new at this but been in the driving game for over 18 years and running my own hgv driver hire business for the last 18 months and that i have been offered local van work not regular work but i would be stupid to turn it down i'm fed up of the artics and the DCPC was the nail in the coffin At the moment i'm doing both but hopefully the van work will become full time

Andy McTighe

796

PC Haulage Services said:


Andy McTighe said:


PHAX said:


sanctimonious bs. Geez Andy thats a big word for mtvan innit. True though.

LOL Phil, I know some bigger ones but I save them for the Shed. I just get a bit tired of seeing newbies talked down at when they are just asking a straightforward question.

I would say i'm not being talked down to more than likley its been asked a lot on here and other forums and as for a newbie yes i am new at this but been in the driving game for over 18 years and running my own hgv driver hire business for the last 18 months and that i have been offered local van work not regular work but i would be stupid to turn it down i'm fed up of the artics and the DCPC was the nail in the coffin At the moment i'm doing both but hopefully the van work will become full time

I hope it all works out for you PC. I looked at your profile and see you have a MWB. I have a LWB and bid on anything above small van size that is going in my direction. Have you looked at Courier Exchange? I find that between contacts I have made on here and Shed5 together with C Exchange I keep busy. I always quote £1 per loaded mile 'trade rate' and if I spot a very convenient return load I go a shade under to make sure of getting it. After that its all about doing a good job. It isn't rocket science and I am sure you can sort it out. If you have some direct work charge more for it and you will have the chance to sub that out for a profit if you are too busy to do it. However don't re-sub a job you have taken from someone else because that can lead to problems. I am fairly new to owner driving myself but had a haulage company in the late 70's early 80's. Good luck.

Speed Couriers Nationwide Ltd

10314

For those that don't get why we have "trade rates" i shall endeavour to explain.

An owner driver by definition spends most of his time driving, therefore his time for marketing/selling is limited.

Courier Companies have people who's sole task is to try and get customers, therefore more able to get customers than the owner driver is. Both have costs, but Courier Companies costs are a lot higher. Courier Companies usually give their drivers a percentage of what they charge their customers. That is the trade rate. What the Courier Company charges their customer is a rate that covers the cost of their salesman, controllers, admin staff, adverts, the software to run their company, and what they pay their drivers. So when a Courier Company uses an exchange site they are looking at a rate the would usually pay one of their own drivers. Sometimes they have to pay more, sometimes they pay less.

An owner driver can get a customer from a Courier Company by undercutting what that courier company is charging. They have less costs, but that courier company will have dozens, if not hundreds of customers that they have spent a lot of time and money getting, and keeping. And they keep them by offering availability. Something the owner driver cannot do, unless he stops being a driver and becomes a Courier Company himself. This is what a lot have done, and continue to do.

And that, in a nutshell, is why we have trade rates. We also have trade rates because we take the risk (see previous thread)

Andy charges £1 a mile for his LWB, and that is a trade rate. Quoting over £1 a mile for a small van isn't

Phax Sameday

2344

Who quotes over a £1 for a small van?/. I struggle at 0.75p. So if my price suits get on the phone pmsl.

Andy McTighe

796

Nicely explained again Mr Speed and covers all the reasons why I don't want to be a Courier Company.

Garnham Courier Services

568

Great discussion guys, and helpful too. My rates seem about OK then. I charge 90pplm for my SWB Transit, but drop it to 80pplm for small van work, a courier firm in Bristol I do work for will only pay 80pplm but it fills the gaps. Others I charge 85pplm to get work, I am starting to make a living but some jobs work out at a pay rate of below minimum wage while others work out at 10.00 per hour. I suppose you have to take the good with the bad. I'm finding anything is better than City Sprint tho'.

Gas Motorcycle Couriers

3617

Pretty much spot on Rob, but some don't seem to grasp the fact that most business's have far more outlay, thus having to charge more to cover the cost, but what the company charges its customers is of nobody elses concern.

RAPID LIGHT TRANSPORT LTD.

2894

Gas Motorcycle Couriers said:


Pretty much spot on Rob, but some don't seem to grasp the fact that most business's have far more outlay, thus having to charge more to cover the cost, but what the company charges its customers is of nobody elses concern.

I agree Gary.

Andy McTighe

796

RAPID LIGHT TRANSPORT LTD. said:


Gas Motorcycle Couriers said:


Pretty much spot on Rob, but some don't seem to grasp the fact that most business's have far more outlay, thus having to charge more to cover the cost, but what the company charges its customers is of nobody elses concern.

I agree Gary.

As an owner driver and subcontractor by choice I also agree that the end user's rate is not my concern. As a Courier Company it is in your own interests to treat your OD's fairly and pay on time and absorb that risk element Rob speaks of. I do think the exchanges should monitor payment terms and in the event of non-payment, or regular late payments the Courier Company involved should be expelled from the exchange. Personally I have my funding and I won't fall over if a payment is late but a lot of OD's sail much closer to the wind and a bit of protection or consideration would go a long way.

Phax Sameday

2344

Mr Cameron will help the poor Courier Companies to pay us O/D's a fair rate. Me and my big mouth lol I got 0.84p this morning.

Andy McTighe

796

Shhhhhhh!

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