Delivery charges

[jfc]

Now and then i need to use a friend of mine with a tidy clean van ;D to deliver some of my finished work . He also helps me on site for a few hours , lets say this is half a day of his time and fuel etc . He works as a courier and can get me a van when i need one as long as i book it . What would you expect to pay for this ? We cant agree as he says hes doing it as a mate but i want a fixed price so i can add it to my prices .

[andy]

How much do you charge for half days work excluding material but including electricity for running your machines etc.

No don't want you to disclose how much but should give you an idea of your worth and a basis for what you think his is


If you can wait until Monday I can ask few "man with van" friends
to see how much they charge


Andy

[sainty]

As a starting point it's got to be half of your daily labour charge, i'd say. What is he not earning by spending a half day with you? Alternatively, if your mate wasn't available what would it cost? Van hire? 1/2 day for a chippy/joiner? Depends on your local rates I guess. The size of the job probably has a bearing on it too, obviously a larger job can absorb more in the way a delivery charge. Ah sod it, give him a case of stella

Sainty

[tim]

I don't have a van or a pal with a van so i rent one every time I need to install stuff.

I usually pay £60 p.d for a luton with a tail lift - lwb transit is £50 so the tenner difference is worth it IMO for the extra space and loading ease.

I have an assistant that I sub in for fitting work - more as a gopher and helper than anything and pay them £10ph and get them to load the van

Cheers

Tim

[Sgian Dubh]

jfc said:

... deliver some of my finished work. ... What would you expect to pay for this? ... i want a fixed price so i can add it to my prices .

I've always found this fairly straightforward for local deliveries, ie, within thirty miles of base.

If you don't own a vehicle or van establish the following expenses:

• The cost of hiring a van per day. Add at least 25% mark-up to the hire charge. Mark-ups are normal business practice.
  
• Work out a flat mileage rate, eg, 60 miles at £0.50 per mile = £30
  
• Establish a day rate for delivery work, eg £20 X 8 hrs = £160.
  

Now you can work out a standard 'local' delivery charge.

• 1 day van hire- £60 + 25% mark up = £75
  
• Mileage charge = £30
  
• 2 men for half a day = 1 X day rate (£20)= £160
  
• Total £265
  

Now you've got a standard day rate that you build it into your charging system. You simply punch that number in as you create estimates or quotes for clients and you know you've enough fat in the quote to make a profit.

Beyond that you might have to look at installation charges where you deliver and install. Here again you simply work out a day rate, eg, £50 per hour for skilled work, and £40/hour to £50/hour is pretty normal sort of rate. £50 X 8 hrs = £400/day. So, therefore, two installers working within 30 miles of base X 1/2 day each = £400 + your delivery charge of £265 = a total for delivery and installation of £665.

As I said earlier really quite straightforward, but once you've got these sorts of figures readily to hand you can adjust a bit to suit jobs. For instance you might think, "Hey, I'm using the same guys to delivery and install, so using this system I'm charging for labour twice and it's not really fair." Just adjust the price downwards a bit to suit to, say, £575 or £600.

So what do you do now? Work out something you think is fair based on the above for this job; charge the customer that amount and give your mate generous quantities of used beer tokens to keep him sweet. Later, work out a proper rate and get it into your pricing system for use in the future. Slainte.

[tim]

sgiandubh said:

jfc said:

... deliver some of my finished work. ... What would you expect to pay for this? ... i want a fixed price so i can add it to my prices .

I've always found this fairly straightforward for local deliveries, ie, within thirty miles of base.

If you don't own a vehicle or van establish the following expenses:

• The cost of hiring a van per day. Add at least 25% mark-up to the hire charge. Mark-ups are normal business practice.
  
• Work out a flat mileage rate, eg, 60 miles at £0.50 per mile = £30
  
• Establish a day rate for delivery work, eg £20 X 8 hrs = £160.
  

Now you can work out a standard 'local' delivery charge.

• 1 day van hire- £60 + 25% mark up = £75
  
• Mileage charge = £30
  
• 2 men for half a day = 1 X day rate (£20)= £160
  
• Total £265
  

Now you've got a standard day rate that you build it into your charging system. You simply punch that number in as you create estimates or quotes for clients and you know you've enough fat in the quote to make a profit.

Beyond that you might have to look at installation charges where you deliver and install. Here again you simply work out a day rate, eg, £50 per hour for skilled work, and £40/hour to £50/hour is pretty normal sort of rate. £50 X 8 hrs = £400/day. So, therefore, two installers working within 30 miles of base X 1/2 day each = £400 + your delivery charge of £265 = a total for delivery and installation of £665.

As I said earlier really quite straightforward, but once you've got these sorts of figures readily to hand you can adjust a bit to suit jobs. For instance you might think, "Hey, I'm using the same guys to delivery and install, so using this system I'm charging for labour twice and it's not really fair." Just adjust the price downwards a bit to suit to, say, £575 or £600.

So what do you do now? Work out something you think is fair based on the above for this job; charge the customer that amount and give your mate generous quantities of used beer tokens to keep him sweet. Later, work out a proper rate and get it into your pricing system for use in the future. Slainte.

Yep - thats pretty much what I do too.

Cheers

Tim

[dom]

If I need a larger van, I rent one, £60.00
I'm fortunate to be able to call on a retired shopfitter at £15.00 an hour.
I rarely have to travel more than 20 miles with London on my doorstep.
The van is delivered to me and the man walks to my workshop.
I don't put a profit on these items(rightly or wrongly)
So for a half day £120.00 + petrol
My personal costs and delivery are already built into the furniture price.