Delivery Service

[Oldcountryboy]

Anyone ever have their own delivery service or work for someone who did? If so how did they determine how much to charge for delivery service?

I've got a 1 ton utility van just settin in my driveway not being used. Wondering if there is someway to start a delivery service and use the van to make a descent living with. Since I have never worked in the delivery service, I have no ideal of how much to charge and if there would be enough work to make it worth my time.

Any thoughts (most thoughts) would be appreciated. Thank you.

[clovis]

My first thought is what about liability insurance? Have you checked with your insurance agent?

Do you have much industry or business in your area?

When the economy was good around here, delivery businesses were making a killing, but they were running HOT freight. There was an independent guy that one plant used, and he was running new car parts to the Detroit area car manufacturers. He was paid $1300for a single run from our town to Detroit, which is about 6-7 hours away. He was also picking up a back haul. The bad part was this stuff had to be delivered the next day, but it is an easy drive from Indy to Detroit. He had a one ton van too, all decorated up with big signs that read "A-1 National Speedy Delivery", or something like that.

There is also a web site that people can offer to haul, but I can't remember the name of the site. It might be good for leads.

[seagullplayer]

Years ago the company I worked for did an install job in Springhill Louisiana, at that time it was miles from anything, there was an old man that made a run into Shreveport two times a day, he had a phone and people would call him to see if he was “goin or Coming” and he would pick stuff up for them. He drove a little Ranger…
I am not sure how he changed but at that time he was the only game in town.
The paper mill we where working at used him several times a week.

[Oldcountryboy]

Liability insurance, bond, is something practically everyone needs regardless of what kind of self employeed business you get into. So if I do the delivery business that would be something figured in the works already.

I have a cuz who works at a factory and several times he has told me that I should start my own delivery business. He says they have independant guys who come and pick something up in vans and small trucks and deliver it to the next town and get paid hundreds of dollars for that one trip. It sounded a little far fetched to me but here lately I've been reading on the internet of Starting up your own Delivery business and seems several sites have confirmed it as being a good thing to get into. But I would like to hear from someone who has personally done it and can tell me the in's and out's of the business.

Ken, is there anything in your E-Book about this?

[chickenista]

I worked as a courier for years. Great job! I liked it.
I was considered and independent contractor and took runs as they were phoned in to me based on my current location.
Just be prepared to have a buddy that can take up your slack.
What if you have two comapnies that you are delivering for.. they both call at the same time.. In order to keep the clients you must be able to fill both orders in a timely fashion.
Expect to grow.
Promote yourself. Nice neat appearance, preferable the same color of polo or button down shirt every day. Be instantly recognizable.
Business cards and a big smile and polite manners.
Make sure you take all of the stress off the customer. Quite often they are time strapped and flipping out. Assure that you have got it all under control. Everything will be fine..you've got it now.
I was the 'fixer' in the company I worked for. If the client's head was popping off, they sent me to calm and assure and successfully complete the challenge.

[clovis]

Chickenista-

Great post!!!!

OCB- What your cuz says is true. It is going to require a box of cards and some cold calling to the people that actually hire delivery drivers. Often, these are people that manage the shipping department or run the warehouse.

Again, check with your ins. agent to see what commercial rates are. They are going to be high, I am guessing. I would think you need to have coverage on the load you are carrying.

The van needs to be in tip-top shape. If I paid you $1500 to take a hot load to Memphis, TN and you said your van broke down and missed the deadline, I am going to be mad.

Maybe you can pick up some work with a service as a driver just to learn the biz a little?

I think you could be onto something big and profitable!

[chickenista]

You can also try title companies and real estate agents for small runs in your car.
A huge chunk of our business was title companies. Lawyers as well.. You can offer lunch deliveries to the places that do large order lunches for business meetings. They are miserable to do.. the meat trays and fruit trays etc.. but they pay well.
Also try post office runs for companies. You run in the morning and pick up huge boxes of mail and then do a pick up for the business right at the close of day. Again, horrible drudge work, but it pays. The companies have to send someone to do these things..it might as well be you and you aren't charging by the hour like their employees are.

Oh, and printing companies... heavy, but money.
Invest in two GOOD dollies. Imperative.

[chickenista]

The guy I worked for started with a cell phone and a bike.
He is now huge with over 100 independent contractors in their own cars, a fleet of box trucks, a fleet of bike messengers, he has processs servers, teh ability to deliver cross country and do seriously long haul stuff.. ask me how I know.
It can be done... remember..a dude, a cellphone and a bike...

[treasureacres]

I am a believer that you can make almost any business successful if you know what your costs are of running the business, determine how much you have to make and price accordingly. Also, you have to be ALWAYS SELLING YOUR BUSINESS! Just today, about an hour ago, I walked into a bank here in town to thank the president for a donation they had made to our football team that I coach. By the time I left I an agreement for my company to do all of their property maintenance. Snow removal, mowing, landscaping, fertilize, and weed control. Probably $10,000+ a year in business. A simple conversation about the weather turned into talk about grass growing and mowing, and then I was into the selling mode. Always be ready to promote and sell your business, and don't be afraid to approach other businesses with your services.

[clovis]

OCB-

You still around?

[Oldcountryboy]

Still here, thanks for the encouragement everyone.

Oh my, sounds like I need a contingency plan incase I ever break down. But don't we for just about anything we do? I'm really wondering if I should start with small package stuff to get the business started and then let my wife take over and I'll start delivering the bigger stuff. She really needs a different job as she is miserable in what she does now.

I've also got a sister who is loosing her job at the first of the year and will need something to do. Since she lives right dead smack in the middle of town, I'm wondering if I could get her involved and maybe use one of her spare bedrooms as a office to work out of. Since she has mostly been in the office type work I think she would make a great partner/receptionist.

[clovis]

Your contingency plan should be to maintain that van as best you can, and replace items like belts, hoses and tires before they need it. I am not saying to sink $4000 into it, just keep aware that fluids need to be changed, and always kept full. Replace weak batteries when they start getting weak, and don't wait til it leaves you stranded 190 miles from home.

The other contigency plan is to rent a truck from Hertz or National if you ever got desperate.

I say go for it...and every day you wait means less loads for you.

[sunflower-n-ks]

About an adult lifetime ago, a boy in my brothers class at school was voted the "class loser". He had a truck. He started delivering things.

Today, he owns a huge beautiful home, a huge wonderful motor home with it's own "garage" and a fleet of trucks that are key to his nation company. Delivery, of course.