How it should work

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Speed Couriers Nationwide Ltd

10314
Original Poster

I am a Courier Company. I tout for work. I spend money on a website, sales & marketing blumph, and try and encourage Businesses to ring us. I have drivers who work solely for me, and a database of drivers to call on when they're all out, or the pick up is in a different part of the country. I am Office based

You are an owner driver. You too tout for work, you spend money on a website, sales & marketing and try and encourage Businesses to ring you.
You are not Office based

I never turn work away
You occasionally have to cos you're already out

Courier Exchange and MTvan

Useful for me to cover additional work once we have run out of drivers and to be able to offer National coverage
Useful for you to get you out if you have nothing of your own, to get a co load, and/or to get you back home therefore increasing profit and cutting down dead mileage

I charge my price and have a %age for the driver. I have overheads.
You have your price which is all for you as you have fewer overheads.
You cannot grow your Business and drive, I can grow mine cos I don't

I can afford for Customers to piss about with their payments
You can't

So I am, in effect a broker, I have the work, you cover it for me. We all take our cut.

Simple formula
Customer ----> Courier Company -----> Courier/ Courier Exchange/MTvan

This formula is true whether you employ or sub contract your work.

Mr B talks about low prices, but he has to ask himself " What would I pay my drivers?"
Mr B does not pay his drivers £1.25 per mile so charging us £1.25 per mile is never going to work.

There are 2 x prices
Prices we charge the customer, and the %age of that charge that goes to the Courier.
A retail price, and a trade price if you like
Anyone trying to charge a retail price to the trade is not going to get much joy

So remember this, Ignorance can be cured, Stupid is forever




Speed Couriers Nationwide Ltd

10314
Original Poster

I come with many customers, so work for me and you have one point of contact with more chance of work than you being on your own.

Without drivers like you I cannot exist, without Courier Companies like me, you CAN exist but you can't cover the workload, the phone calls or the admin without coming off the road.
You then become me, a Courier Company!!!!

This is a partnership between you and me. We need eachother
SO DON'T TALK THE PISS WITH SILLY QUOTES

Some drink from the fountain of knowledge,  some just gargle

Website Admin

6679

Great thread Rob. You're making me inclined to add a 'sticky' feature to the forum.

MK BIKES

2821

A price is a price if you don't like it move on to someone else if these people have got it so wrong they will fade a die.


Website Admin

6679

Correct MK Bikes, however especially for those new to the game you may find they're better at quoting after a few weeks/months.

Fastback Parcel Solutions

1701

Hmmmm, i am not saying i disagree with you speed because you are obviously succesful however are you saying that even though you have no drivers to cover work you tout on here expecting a favourable rate but still want to take a cut, dont get me wrong i am not having a go just trying to understand how you or others work.

Asap-Direct

4759

From the other side as a OD I have to rely on networking and Mtvan all the time. What gets to me is a fair! Price for a good job. I have this week quoted for a job of 136 miles £80 was to much. I run a well maintained van, taxed insured at over £2000 pound a year, how can I deliver a service for less. I work for some of the larger companies at poor rates so need to try to receive return loads at a sensible price. Perhaps we are own worst enemy.


Speed Couriers Nationwide Ltd

10314
Original Poster

I have spent a lot of time and money touting for customers, and what they expect is availability. And that is what they get, by utilising a network of drivers, yourself included.

I have never been one for wanting an office full of drivers waiting for the next job. Its outdated and causes resentment. I don't see the point.
I actually have less drivers than i need, that way mine know they're going to earn, not sit around. The balance is covered by sub contractors. I can't see whats wrong with that.
Are you saying its better to turn work away?

I have never expected a favourable rate, I pay a fair rate..the same rate i would pay my own drivers, sometimes more, sometimes less. It all depends on who is where and when.But I do wonder why some quote silly rates. They're either stupid, or they're trying to take advantage of a situation. I find that disappointing and short sighted
You want to build your networks, not isolate yourself.

For me its always been about utilising a network of drivers criss crossing the country.
Before CX and MTvan I had my own network of drivers. The more we all communicate where we are, the more we can keep the vans filled and cut down your dead mileage.

Speed Couriers Nationwide Ltd

10314
Original Poster

£80?

Well anyone expecting to get work covered for less than 70p per mile (small van) isn't someone worth working for so I wouldn't be losing sleep over that one.
All it needs is sensible
£1.25 + isn't and 59p isn't either

Fastback Parcel Solutions

1701

therein lies a problem speed, i have quoted at 70ppm and had no work so far, i suspect that there are people taking backloads at somewhat less than 59p just to offset their costs, i cant afford to work for those rates.I would love to work for a reliable fair paying couried firm as an OD its proving more difficult than i thought even to get a start.

Speed Couriers Nationwide Ltd

10314
Original Poster

Well i would persevere cos no one can quibble with that rate. There's always going to be those quoting lower so they guarantee to get their load home, but that's not gong to be the case that often cos their timing won't necessarily work for the vendor.

I am very careful to suss out where the one quoting is in relation to the pick up....amazingly some lie to ensure they get it, but it'll be the last one they get from me...again..very short sighted
There are many things to take into consideration when accepting a quote and price is just one of them.
Also worth noting that its often easier to keep moving once you start moving

Barnsley Shipping

5

No Rob

This is a blueprint for how you would like to see things how you would like things to work to make your business run well .

a job is a job a price is a price . I might run my vehicles cheap for DHL who are going to pay me next week but realistcly you are asking for unsecured credit that the banks refuse to offer transport companies !!! Why should you expect these small business people to offer you credit at better rates than the banks and accept such a cheap rate in return . !!

You trying to tell me how it works but out of this game I own my yard, my vehicles , my house , and I own the house my son lives in and you wonder why I gat irrate when you try to teach me my business !!!!!!!! I have been doing transport for 43 years man !!!!!!!!!!!

Website admin good advice for the ones getting started but in my experience when a person hits about year 2 or 3 he moves away from running cheaply and will quote higher rates as he propably gains more and more and cherry picks the good work . For some reason people on this forum appear to be dead against people trying to make more money from their businesss

 

Speed Couriers Nationwide Ltd

10314
Original Poster

"I run cheap for DHL"

You are a hypocrite. You talk one argument and then do exactly what you tell everyone else is sheer madness to do.
I have no need for an overdraft and have no loans, so have absolutely no idea why you think we are any more of a risk than DHL or anyone else. Thats just insulting, and proves how dim you must be to assume a big compnay is more trustworthy than a small one.
You may well have been in the Transport industry for 43 years, but you know little about the Courier Industry. You prove that every time you open your mouth on this forum

Barnsley Shipping

5

Im not here to insult you Rob nor use you as an example but if your asking for credit for a month or more that should be reflected in the rate that is charged I f you were to say payment made by card when the POD is phone through or card payment made on booking you would then have a very good argument for expecting a cheaper rate  .

Somewhere along the line the courier industry has become different from the transport industry I can see where !! The industry as a whole has been burdened by bad debts most defently smaller to medium courier companies I have lost thousands over the years all to small /medium companies

Im guessing your a good guy Rob with the best of intentions If you were not you would not be representing yourself and being open in this way but your way is not the only way . As a sole trader with a relativly high turn over and  being this old I canot offord to take the risk .

There is not rate scale or format as you deplict I mean what I say the ones that answer the phone may not even want to do the job so you cant blame them for quoting high.

I know these new boys are very keen but the people that have being going longer that have a weeks work that is safe are probably not that keen and not that willing to go out for 70 p amile after doing a day s work .

I do agree that the guy returning home chagres just his feul money is a good thing but we must not confuse that with this issue .

As far a credit worthyness goes its not even me these days that would do a Credit check my bookeeper does that for me The risks are culculated .This is more than we used to do in the old days and hell does it make some reading !!!

Speed Couriers Nationwide Ltd

10314
Original Poster

Well i still have drivers from when i first opened the doors, and these are guys that had experience of the industry before i got into it. And if 90% of the subbies are quoting around the same price, then forgive me Bob, but that suggests to me that the going rate is what i suggest it is.

Those quotin silly therefore fall into 2 categories
1- They're stupid
2-They think they can take the piss
The reason we pay 30 days is because that's what subbies demand. I'm not going to pay weekly if they don't ask for it weekly!!! We used to pay weekly, and still do for regulars so cashflow is not problem for us.
And i've just seen the prices for houses in Barnsley....why are they so cheap?
£50K for a 3 bed house?
I may well be moving back up North!!!

Barnsley Shipping

5

I dont know Rob I think your showing a lack of respect for those that do quote a high rate.

If they were despaerate they would quote lower rates I dont see how the boys down South can afford to run at those rates the way things are down there How the hell do young drivers starting out make it ?

Nottingham & Derby Couriers

3179

DHL, TNT, UKMAIL YODEL and all the large carriers tend to pay O/D s weekly.
This is because the subbie rate is the same now as it was in 1999.
They also have a fuel surcharge which i am not convinced gets passed down.
We do act as backup for some of the big carriers but have to charge our normal rates and they only use us as a last resort.
Some of them settle weekly and some monthly.
We have had some stupid rates from London couriers and some good ones a few months ago we had to collect some equipment from the London eye and move it 3 miles, One courier £145 + vat the other £15 + vat.
And people say the rip off rate is just what you have to pay in London.
The same goes north of us, some good standard rates and some who haven't got a clue on rates.

Fastback Parcel Solutions

1701

So...central London work 3 miles = 4 hours work at £15 for the job...now that is cheap

Nottingham & Derby Couriers

3179

Probably right place at the right time

Barnsley Shipping

5

Good Morning Nottingham

 

               The way we work with them are as you point out and rates have rarley climbed but you can negotiate .

Where we do OK with these companies is on the flatbed work as it always almost near a 7.5 tonner and not everybody has them . They do however use a little bit more juice so we reflect in the rates as well. & 7.5 toners are also rare around here so the next thing for them to do is sub it to a 18 tonner and that too dear so we have a method in our madness !!

We have an tri axle Ifor Williams trailer but we are only allowed to tow it for fun these days

             

Speed Couriers Nationwide Ltd

10314
Original Poster

How is 3 miles 4 hrs work?

Honestly, London is London but it doesn't take that long to get around ffs...lol
I pay anything from £15 to £35 for a London to London depending on where to where 
And yes....Multidrop rates are the same as 1999 which is really takin the p, which is why i don't have anything to do with Multi dropping anymore....anyone that does and then tries to tell us how to run our biz is REALLY having a Larf!!!!!


Fastback Parcel Solutions

1701

Jeez speed you had a sense of humour removal....i was joking :-)

Nottingham & Derby Couriers

3179

I wasn't talking about multi dropping rates we have a subby driver we sometimes call who works for DHL and 50pplm is the rate---------As it was in 1999.
He went to London a few weeks ago for us and when he was paid he though that we had over paid him.
We don't touch multi drops. We did however do a 5 drop run 2 weeks ago at our rate.

Speed Couriers Nationwide Ltd

10314
Original Poster

EG London up to 2 miles £15, 3-5 £20, 5-7 £25, 7-10 £30 and 10-15 £35

You have to take into account that the guys i use in London are doing many small distance jobs,so at these rates can make a very nice living indeed.
Like i said in a previous thread, once you start moving this networking comes into its own


Springer Express Couriers

2148

Mr Nottingham has hit the nail on the head!
if your in the right place at the right time then you can discount your rates to get the job,
normally 0.70ppm is my normal price and I do OK on this price if someone does not want to pay this then I don't get the job, However I happened to be driving past a job from Bristol going to W1 I was already on a retail job going to W1 it seems criminal not to quote cheap,
it worked out at 4miles@£18.75+vat per mile for the extra drop!
So discounting is not a bad thing as long as it's of benefit to both parties!
and of coarse prices are always subject to customer attitude!!!! 

Speed Couriers Nationwide Ltd

10314
Original Poster

And i have a guy that works for TNT at 47p per mile so is very happy indeed getting what we pay.

Its the big boys that take the piss Bob, not us....and if it wasn't for the big boys rates would be allowed to be where they should perhaps be. But they're not.
CitySprint charges start as low as 85p per mile...so i suggest you get your facts straight before you talk about rates charged, and rates paid to subbies.
Like I said....90% of those putting in quotes are around the same rates as what we want to pay.
The short sighted piss takers are the minority who either don't understand or are willing to burn their bridges for a one off piss taking high rate

Speed Couriers Nationwide Ltd

10314
Original Poster

And contrary to what some may think I do respect other peoples opinions BUT only when that opinion has some foundations holding it up, rather than an opinion sitting on a hillside with a fast running rather swollen river sitting next to it and no boat.

S Garner Courier

1333

Quote: 'Like i said in a previous thread, once you start moving this networking comes into its own'


It is always going to be difficult for new starters, insurance is higher, investments may need to be recovered, plus you're in need of cashflow to fuel up to even do the job.

Biggest barrier I can see is getting into that network in the first place as it's already established and full of trust already built up. It's the vendors who take the risk of using a newbie that can open the door, but I can understand some not wanting to risk that against a trusted subbie. Chicken and egg situation really.

Barnsley Shipping

5

Prices are subject to customer attidude

I do like that one ,That has to go in at least the top 25 of worthy quotes !!

Speed Couriers Nationwide Ltd

10314
Original Poster

Well Scott all I can say is, new or not, if you conduct yourself in a professional way you are sure to get "trusted" and get repeat biz., and on that count you have nothing to fear whatsoever.


Paranoia is part and parcel (pardon the pun) of this industry, and cashflow is often the killer, particularly with Customers not paying on time...which is one of the main reasons subbies start by working for Courier Companies rather than direct with the customer. We pay on time even if our customer goes bust. We take the gamble, and we have the client base at the end of one phone.
Work with us and you have access to our database of customers, and are therefore more likely to get regular work. Many of you choose to stay with this way of working as its less risk, less cashflow needed and may well fit in to your lifestyle. Courier Companies have to be available 24/7...you don't
I choose to never turn work down, its what i give my customers, availability and peace of mind, and you guys help me to do that.

SMH

1863

im with you tony a price is a price take it or leave it, i use milage rate as a guide price depending on where its going and what time its going

like friday afternoons anyone that charges there normal price for london on a friday afternoon is crazy lol (unless you get ££££££ out of a customer then thats a different matter)

if someone was to call us on a friday afternoon for central london and its just a one customer, they'd be on £2plm at least lol trade or not trade :-)

SMH

1863

I have drivers who work solely for me

self employed?

Barnsley Shipping

5

I have drivers who work solely for me

self employed?

Good question because thats not how it should work !!!

My drivers are the books and I dont know what Im doing or what Im on about !!!!

But my drivers on the books I guess that makes us a proper company !!! ?

Speed Couriers Nationwide Ltd

10314
Original Poster

SMH

1863

if you have drivers solely working for you then they should be employed, unless you have a water tight contract with them and the tax man

Mr G Courier Service

2596

Speed Couriers (Stansted Airport) said:


The more we all communicate where we are, the more we can keep the vans filled and cut down your dead mileage.

Come on Rob ive been texting you all week and still waiting for your call . Wrong place at the wrong time?

Speed Couriers Nationwide Ltd

10314
Original Poster

Obviously otherwise you'd have had a call back....the chances of your whereabouts fitting in to where one of my pick ups is is a bit like a needle in a haystack. That's why you have the likes of MTvan and Courier Exchange. Tell them where you are and 100's of Couriers are informed thereby increasing your chances of getting a result.

AJM sameday Couriers

3440

Mr G, Rob wont give you any courier work until you put some wheeltrims on your combo!

Speed Couriers Nationwide Ltd

10314
Original Poster

No wheeltrims? Thanks for the tip....You can't be too careful in this game! Thank god you told me before it was too late

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