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My son has been approached by someone who has a recently set up courier business, with a view to taking on some work from the business, as a self employed courier. How are such people normally paid? Is it on a mileage basis and, if so, what would be a reasonable rate per mile, given that he has to supply the vehicle?
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And pay the extra insurnce to cover business use and the contents of the vehicle!
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I looked into this a couple of years ago. I don't know if my experience is typical but payment was per package delivered. No account was taken of the mileage covered, I was expected to provide my own vehicle (had to be less than 4 years old), insurance, etc, etc. I was also expected to provide my own holiday & sick leave cover but the company had the right of veto over the person I supplied and I also had to pay for their training! I never took them up on the offer.
At about the same time, a friend of mine actually began doing this sort of work & was given a patch that was so far from base that the payment didn't even cover his fuel costs. He got his fingers burned quite badly and was stuck with a transit that he didn't need when he quit.
As I said, don't know if this is typical but i would suggest asking lots & lots of questions before making a financial commitment.
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Sold loads of vans to people trying this job - quite a few repet sales, too.
Drawbacks...
If you're picky about which job you'll take, you MIGHT end up sitting in the office, or at the end of the fone, waiting for the next 'good' earner. & it quite often doesn't come!
VERRRRY dear insurance.
You have to finance the vehicle, fuel & running costs, all up front.
Some slow payers, depending who you work for.
The company might not let you be freelance & might dictate you ONLY work for them & livery the vehicle too.
Vehicle worth nothing, after short period of time - assume you work the miles
Advantages...
You choose your hours - sort of
Get return loads, you'll make the run more profitable.
Do the jobs nobody wants - inside M25, you'll not be far from home (round here that is) won't put millions miles on the van
Suits semi retired, looking for relativly independent work pattern. These guys were the ones more successful, incedently.
Hard to truly make it pay more than the REAL running costs, of the van - pocket money, maybe, but more than that is hard.
VB
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mucky fat seems to be the only way to make any real money at it
unless you are willing to go to europe on jobs?
or leeds to london yesterday?
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The company I work for as a mechanic specializes in van and truck rental.
We get lots of new 'courier' punters hiring vehicles on a weekly basis. Most of them pack up after a few months.
The big boys have most of the work wrapped up, and use the small self employed couriers when it suits them.
This means that work is at best 'occasional' - and most of that work will be the stuff they don't want.
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Hi there, Machika. Forget it !!! My son did it for about six months and made sod all after all the cost. I run a pizza/curry/chinese etc delivery company and the insurance alone is a crazy price. If you do go for it, all the best to you. Cheers, graham.
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I looked into this once and was amused at how with all the costs worked out there was nothing left.
It made me wonder if anyone is surviving at this game, whether they have the expensive courier insurance and whether there is a completely straight edge with the Tax office :)
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