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A to Z of Operating Expenses
This is the A to Z list of all the expenses associated with a company that employs all their own drivers.
A to Z of Operating Expense for Having Your Own Company Driver
Benefits (Hospitalization, Dental, Pension, Disability, Profit Sharing, Etc.)
Down- Time due to breakdown
Employee Pay (drivers)
Fuel (Rising costs)
Holiday Pay (Christmas, New Years, Labor Day, Thanksgiving)
Job Recruiting for Drivers (Craigs List, Career Builder, Monster)
Keep Parking for Vehicles (Overnight Storage for Vehicles)
Leasing and Purchasing Automobiles and Vehicles
Media Expenses (Classified Ad and Radio Communication)
Now, why do you even want to be in the delivery business
Operations Expense (Payroll Processing, Records, Information Management)
Parking Meters- Pagers and Cell Phones
Quality Control (Finding & Maintaining, Available, Quality Drivers)
Tolls, Parking Tickets
Xcessive Vehicle Maintenance
Yearly Vehicle Registration Fee’s
Zero Administration of all of the above, with one check!!!!!
Give Chicago Messenger a call and let us handle your freight, so you don't incur these over head costs of doing deliveries. 312-666-6800 or visit our website to learn more www.chicagomessenger.com
When a company decides to hire their own drivers, it can become very costly with all the overhead. This list is here to give companies an idea of all the costs of hiring their own driver. It is best to let someone who handles freight do this. I look at all the overhead cost of having independent contractors and its enormous. Most of the time when companies have free delivery, that overhead cost becomes enormous. Could you imagine cutting out one of the most expensive overhead fees, cutting back possibly almost $75K+ in overhead per vehicle. That almost puts you into the black instead of the red for some companies in a tough economy like this one. Businesses are doing whatever it takes to eliminate some overhead. Why not start with your own company vehicles? I challenge you to take that inititive and see the savings that add up and get put into making advances and letting us help grow your business!!!
I see some other the other costs that become part of having employee bikers which can become costly too. Some of those costs include but are not limited to: bicycle, repairs (flat tires or chains), parts, lock, courier bag, equipment, cold weather apparel, violations. The most costly of all the bicycle couriers are the insurance. The cost to insure these indivduals can become a loss leader to most. It costs an arm and a leg to insure against an accident, which in this business is very risky when doors are opening up and cars are turning without people looking, and people texting while they drive. It gets more and more dangerous and costly to these hard working individuals. Chicago and New York City are the two cities know for their bicycle messengers, and being rowdy. We have an eclectic group of bikers here in Chicago that are careful not to ride on the sidewalks and to always wear helmets. They wish that cars in the downtown area would take precaution of them like they do for cars passing by.
Give Chicago Messenger a call and let us handle your freight, so you don't incur these over head costs of doing deliveries. 312-666-6800or visit our website to learn more www.chicagomessenger.com
Learn more about the author, Brad Factor.
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