Home – New Forums Starting your journey starting courier company?

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  • #990894
    Pop_Pop
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    Hi everyone. I need some advice

    I am toying with the idea of starting a courier company for Sydney Residents
    and have a few questions

    1, How hard is it to start a courier company?
    2, how much do courier drivers normally get paid?
    3, how much tax and super do i have to pay for employees ontop of their normal pay?
    4, what type of insurance do i need for the drivers and packages and do any of you know the costs of this?

    thank you in advance.

    #1179005
    arrowwise
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    All I know is that it is an increasingly cut throat industry. To make money you really need volume in drivers and pickups / deliveries. The industry has been consolidated a lot in recent times with many smaller operators selling out to the majors.

    Drivers that work for themselves as sub-contractors generally don’t do as well as those that are salary earners for the major companies with proper conditions and super etc.

    In order to charge more and create your own position in the market place you would need to be offering a niche service within the norm.

    #1179006
    Anonymous
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    Hi Pop_Pop,

    Welcome to the forum :)

    That’s an interesting idea – I bet you’ve got lots of questions going through your head right now.

    I hope the comments from arrowwise give you some food for thought.

    Good luck!
    Jayne

    #1179007
    Pop_Pop
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    arrowwise, post: 208709 wrote:
    In order to charge more and create your own position in the market place you would need to be offering a niche service within the norm.

    thank you for your reply arrowwise.

    yes the idea is have is a niche service. It’s kind of more an upmarket delivery service where the receiver can choose which 4-5 hour window block of time they will be home to receive stuff and it will be operational during weeknights and saturday mornings when most couriers would be closed.

    i got this idea when i was shopping on coles online webste. their delivery operates till 10pm on weeknights and also on weekends and you just pick a 4-5 hour window of when you will be homes.

    #1179008
    Petemac
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    Hi, as a freight consultant I deal with a wide range of carriers and all carriers have their particular favourite type of freight even when they acept all freight hence why I give me clients a range of carriers to use so they can get the best overall deal. The 5 hour window on its own is not something unheard of but the weekedns and night are different but based on the limited requests I have had for that type of service over 4 years you would have to specialise your marketing for very particualr busineeses and to me that could be a big challenge.

    I would suggest researching the actual demand for the type of service you are looking into first before you go to far down the track to ensure you have a market that is not to resticted.

    Cheers

    Pete

    Pop_Pop, post: 208737 wrote:
    thank you for your reply arrowwise.

    yes the idea is have is a niche service. It’s kind of more an upmarket delivery service where the receiver can choose which 4-5 hour window block of time they will be home to receive stuff and it will be operational during weeknights and saturday mornings when most couriers would be closed.

    i got this idea when i was shopping on coles online webste. their delivery operates till 10pm on weeknights and also on weekends and you just pick a 4-5 hour window of when you will be homes.

    #1179009
    Ryinth
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    I like the idea of a weekend service, but there would be a lot of logistics in getting that organised…

    #1179010
    My Guy
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    In the building industry we have online directory listings that help with getting work when some of your normal niche market is not making your business turn over.

    I would start with finding out what companies out there currently do this service for couriers and see if you can score a pay per lead type of job.

    My business is in trade services and one day I would like to think I could have a courier service running, although it is not currently my main focus in my business right now, I would happy to help you or join you on this research and find other ways.

    If there is something that I have gained knowledge in since I have been a business owner for 5 years, I still stick by the following points.

    1: Customer service
    2: Being on time
    3: Being reliable
    4: Being presentable
    5: Being effective

    Note: above I said “Cost effective” this means, not undercutting your competition, it also means not the most expensive service and not offering anymore than competition A down the road with the extensive service history.

    Couriers charge out at the typical standard market rate of $66-$99 per hour.

    This is quiet achievable if you have a van or small truck, 30-40 deliveries a charging out out 10 – 20 a deliveries a day is feasible by all means.

    The system needs to be improved as the business grows, don’t think for a second you’ll be making huge profits by the end of year one, you’ll be wanting to find faster and faster ways of getting orders in without staff or admin personnel.

    This is where someone with extensive IT background would come into play.

    IE: me… lol

    Anyways keep me in the loop mate would love to chat more about it and see whats out their and help you move forward. Sydney would be a great place because I know just how fast that city is moving.

    #1236750
    Sean
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    I would highly recommend not hiring employees, especially as a startup. Employees are incredibly expensive and a hassle to deal with. Hire contractors instead. Costs are lower so you can pay them a little better than other similar jobs at other companies where they hire employees. Just make sure you’re not telling them exactly when and where to time in, time out and take lunch. They have to be able to direct some of their own schedule so either pay per delivery or a set salary but do not pay per hour. Doesn’t mean you can’t figure out what the hourly rate would be approximately but don’t pay per hour. My two cents for what it’s worth. It’ll save you a TON of headaches.

    I started a healthcare company with this exact model, hiring contractors and paying them per visit (like a delivery) and it was up to them to schedule and get to appointments in order to make money. Plus you don’t have to pay contractors per mile, but you do employees. Cuts out a ton of costs. There are many ways to structure this so if you want to talk in more detail about it let me know. I’m happy to help.

    Unique Business Consultant
    #1236913
    fatehshakir
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    • Total posts: 1
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    Hi everyone. I need some advice

    I am toying with the idea of starting a courier company for Sydney Residents
    and have a few questions

    1, How hard is it to start a courier company?
    2, how much do courier drivers normally get paid?
    3, how much tax and super do i have to pay for employees ontop of their normal pay?
    4, what type of insurance do i need for the drivers and packages and do any of you know the costs of this?

    thank you in advance.

    Yes this is great idea you can start courier company easily [Mod Edit To Remove Promotional Content]

    #1238391
    Nitish Kumar
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    • Total posts: 9
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    Courier companies can be a great way to make money and start your own business. When you set up your company, be sure to consider the following:

    -Who is your target market? Are they local residents or people who travel frequently for work?
    -What services do you offer? You may want to specialize in a certain type of delivery (e.g., flowers, food), or have multiple service offerings (delivery, pickup).
    -How will you charge for your services? Will you require a minimum order amount or flat fee per delivery? Do you offer discounts during special events or holidays?
    -What equipment and resources will you need in order to operate successfully (vehicles, packaging materials)? Is there anything else that needs to be purchased specifically for Courier Company operations (software applications, marketing materials)?
    Once all of these questions are answered, it’s time to come up with creative ideas for pricing and promotions. It’s also important to develop strong relationships with clients so that repeat orders are easy to generate. By using these tips, hopefully starting Courier Company won’t be too difficult!

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