Delivery driver jobs1/3/2023 ![]() ![]() You also need to know your overhead costs such as administrative staff salaries, office supplies, rent, utilities, marketing etc. Don’t set an hourly rate without knowing these factors.įirst, you need to estimate the costs of delivery such as labor, gas, vehicle maintenance and insurance etc. That said, you need to factor the costs of delivery and overhead and your desired profit margin into your hourly rate. So if it takes an hour and 10 minutes to deliver a package, this would cost $35. At $30 an hour, the per-minute fee is 50 cents. Once you have an hourly rate, you can use this to price shorter or longer jobs. Let’s say your main competitor charges $15 for a 30 minute job. Use your competitors’ rates to determine your hourly rate. You will charge later based on how long the delivery actually took. Of course, this is just an estimated time. Waze and Google Maps will both estimate drive times based on traffic. Decide How Long the Job Will Takeįigure out how long the delivery will take. ![]() You probably won’t be able to cover your overhead with really low rates either, meaning you’ll eventually go out of business. What the average rate will tell you is how much customers are willing to pay for delivery in your area, says Profits on Wheels.ĭon’t try to simply price lower than your competition as potential customers will be suspicious. Just be aware that each delivery company has its own specific costs, such as vehicle maintenance or rent, that they need to cover and which are factored into their rates. This is what you should aim for as your target hourly rate. Charge Extra for Rush or After-Hours OrdersĬall all the courier and delivery services near you or check their websites to get their rates.Plus, you can quickly convert them into invoices when the job’s done. Need a delivery estimate template? FreshBooks’ online estimating software makes generating and sending estimates easy. ![]() Read on to figure out how to set an hourly rate for delivery work, what costs you should factor in and how to charge for extra services. Nor do you want to undercharge and make little to no profit, a situation that will quickly put you out of business. You don’t want to charge too much and not get any work.
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