Most start-up businesses go through the crossroads of either incorporating a delivery service to their company or relying on a third party. Some of those who made the leap of purchasing a horde of Freightliner Sprinter vans for their Salt and Idaho businesses became successful. A few, on the other hand, added a delivery service to their business only to find out that if they had procured the services of courier firms, they would have been able to save more.
So, how do you figure out if you should have your own delivery service and when you should do so? Fortunately, there are ways to figure this out without having to guess all the time.
Check your competitors
One way to know if it’s time to add a delivery service to your business is to check what your fellow competitors are doing. If you’re selling clothes in your own physical store, chances are you won’t think about it because your customers can walk into your place of business anytime and buy your items.
But what if your competitors who are also selling shirts decide to sell their items online? That’s a whole new market they’re tapping into. If they have their own delivery service, they’ll be able to reach more customers than you. So, check what your competitors are doing and see if having your own delivery service will be beneficial to your business.
Check your costs
Having your own delivery service will definitely add value to your business, and the potential for acquiring more customers is pretty high. But it’s always wise to check first how this will affect your overhead costs.
Ask yourself these questions: How much is one delivery van? How long will you be able to recoup your expenses for purchasing that van? How many vehicles should you purchase to keep yourself ahead of the competition? Should you buy a second-hand vehicle or a brand new one? Will adding a delivery service improve your profits substantially, and if so, by how much?
Because you can’t be too careful with every purchase you make for your business, it’s better to make sure that you’ve ironed out all the details before you make the next move. But if you do intend to add a delivery service to your business, there are ways to do this without having to break the bank.
Start small and expand gradually
What you can do is to start small by either procuring the services of a courier company or buying your own delivery van at a bargain. If you check online, you can find many Sprinter van dealers across the country that can offer you the best deals.
By starting small, you’ll be able to manage your overhead costs more efficiently, and then you’ll be able to expand as soon as your profits are large enough to give you that leverage you need.
Adding a delivery service to your business can add value to your company and help you double your profits. But it’s also important to know when the right time is to take this next step.