What is it?

Costs

Tips for success?

 

  • Where the franchisee relies on a hub operation and overnight trucks, the franchisor has quite a tight level of control over the franchisee. Invoicing is handled centrally and processed once or twice a month but drivers will probably have to be paid weekly. You therefore need to be quite clear about who will be chasing the invoices to ensure they are paid. Cash flow is vital when you have a workforce waiting to be paid so you need know exactly how this will operate.
     
  • A definite risk is not adequately controlling costs. As a business to business operation, parcel services is not strictly a seasonal business. Though there will of course be busy and quiet times of the year.
  • With a courier franchise don't be fooled into thinking the van will be your only expenditure. This is a franchise with low overheads in many respects but you will still to have money to spend on phone calls, advertising or mail shots and on running the van.
  • To cover yourself, calculate the amount of money you would need if your van broke down, your roof caved in and you had another child all at the same time. If you aim for that, you shouldn't run short on the everyday expenditure of mortgage, food, bills and so on.
     
  • You need to know your customers and be close enough to know what their needs are. If you establish a way of working with certain firms, you have to deliver the same service to the same standard each time they use you - or they will stop doing so.
     
  • Losing touch with regular customers should be avoided. Obviously, you will need to be pushing for new contacts all the time but this is no excuse for neglecting the existing ones. This is a very competitive and crowded market - particularly the overnight delivery industry.
     
  • The service you and your drivers offer - in the case of depot based franchises -must be impeccable if you want to survive. If the face of your company is rude and surly, companies will not hesitate to go elsewhere - and there is enough choice out there for them to be able to do it.
     
  • If you have drivers, either as employees or franchisees, keeping them happy is very important. These are the people who effectively sell repeat business to your customer base. If drivers are demoralised and they will not give out a good message to the companies they come into contact with. Motivate them by offering bonuses for full attendance and commission on new customers.
     
  • Detailed attention to each of your customer's needs is vitally important. If something hasn't been picked up fast enough, investigate why it hasn't. If you have 100,000 boxes going through the depot in a night, for even one of those to go missing is not acceptable because that is one customer whose parcel has been delayed.
     
  • You are being relied upon, whether you drive a van or run a depot. And to not make a delivery on time will blot your copybook with that particular firm. It is of course vital to be pleasant with customers, but you must back this up with good service.
     
  • Keep yourself at the forefront of company's minds. After advertising, follow up a few days later with a phone call. If you have regular customers and haven't heard from them in a while get in contact. It could just be that they haven't needed your services but it could also be that they have found someone else to meet their needs.
     
  • In this kind of service industry, constantly improving your reputation is essential - you are only as good as your next job. But who says being kept on your toes is a bad thing?