Put your rates up and introduce a 5p/mile discount for 7 day payment.
Posted under Courier Basics
Posted by Alec at 11:17 am, April 17, 2008
Should I increase my rates?
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Hmm, so lets imagine that I have a job right now out of Wolverhampton going to Glasgow and that Darren just happens to be sitting in Wolverhampton ready to go. Darren’s just put his price up to 70p/mile but Gill’s decided to stick with 65p/mile.
Given that I know that they’ll both do the job perfectly, which one’s going to get the phone call?
Fair point Lawrence, which is why I’ve had to stop a couple of the local lads invoicing me silly low rates recently.
On the other hand I know I could make a reasonable living running round in a small van at 65p/mile so I don’t see a need to tell people to charge us more for a distance job like that, and neither would you.
I think people get a bit fixated on this pence per mile rubbish to be honest. You and I both know that a journey in one direction costs us far more than a journey in another and that lower distance jobs actually cost far more per mile to carry out than a 200 mile run to Scotland, yet we carry on with this pence per mile charging model.
Personally I just make up prices as I go along now, I’ve not quoted a mileage rate to anyone for 2 years.
Maybe I’ll offer to pay you all a bit more on the outgoing jobs and scalp you on the backloads to keep our margins up.
I agree with Jeremy!
Customers are looking to save costs wherever they can, they’re phoning around for prices much more than they used to and they seem more prepared to risk trying someone new to save a few quid.
We’re all in exactly the same position you see – it’s an open market and someone will always do the job cheaper.