How Much Should You Bill Per KM For Work Delivery Services?
2024-10-30
Delivery services have become increasingly popular and in-demand over time, and in this time where we are slowly inching back to more of a normal daily routine in the midst of the COVID-19 pandemic, running a business that delivers products or services to people is vital to sustaining both businesses and individuals. If you've started up a small business after buying a used bakkie for sale, you need to factor several expenses into how much you charge for your products or services. After all, it's not just the actual labour or production of an item that;s involved; you also need to look at what it's costing you to collect and deliver products, transport staff and maintain a healthy business without suffering financial loss.
Delivery services have become increasingly popular and in-demand over time, and in this time where we are slowly inching back to more of a normal daily routine in the midst of the COVID-19 pandemic, running a business that delivers products or services to people is vital to sustaining both businesses and individuals. If you've started up a small business after buying a used bakkie for sale, you need to factor several expenses into how much you charge for your products or services. After all, it's not just the actual labour or production of an item that;s involved; you also need to look at what it's costing you to collect and deliver products, transport staff and maintain a healthy business without suffering financial loss.
Here is a simple guide to help you work out how much you should be charging or factoring in to your overall rates if you're making use of your own bakkie for work.
The Cost Of Petrol, Services And Maintenance
Firstly, bear in mind that it's not just the cost of petrol or the time it takes for a product or service to reach the customer. You also need to take account of your vehicle's maintenance costs in terms of services and repairs, as well as insurance premiums, and work this into your calculation. If you're employing a driver instead of doing the delivery work yourself, the salary of your worker also needs to be kept in mind.
The Cost From Point A To Point B
If you simply want to work out the base cost of driving from point A to point B, you'll need to know what the total distance to travel is, as well as your vehicle's fuel consumption and how much the current petrol price is per litre. To work out a specific average you can quickly quote clients on, work out what the costs are per ten kilometres. Once you've done this, calculate what your bakkie's annual costs are in terms of tyre replacement, services and insurance, then factor this into your cost by working out how many days you'll be driving and how many kilometres you expected to cover in a day. If you bought the bakkie with a loan, remember to add loan repayment costs to this calculation.
We hope this gives you a more accurate idea of what you should be charging per kilometre for your clients. If your used bakkie for sale is in need of a service or check-up, remember that Motus Select has reliable and friendly service centres all around the country to get you back on the road with confidence.
