Over the last couple of years, courier and delivery service businesses have experienced steady albeit slow growth. Part of the growth can be attributed to competitive package delivery strategies that resonate well with consumers. Therefore, if you are mulling over the decision to start a delivery services business, you need an effective entry strategy to convert business prospects into profitability.
This article highlights three success tips for creating a startup courier business.
Flat Rate Pricing
Different parcel delivery companies charge varying rates for their services. While some firms will charge each package separately, others will base their prices on the distance to be covered. Since your goal is to keep costs as low as possible as well as attract clients, charging flat rates over a range of parcel weight would be the best strategy. For instance, if a client wants to send several packages with a combined weight of 10 kilograms, it would be prudent to charge a flat rate for the entire batch. If you charge for the packages individually, then you will witness your clients opting for competitors packages.
Door Step Delivery
If the steps taken by major players in the market with regards to package delivery are anything to go by, then small-scale players have no option, but to up their game. Courier services are employing latest technologies such as drones to make faster deliveries. Since consumers are used to shopping within the comfort of their homes and offices, they do not expect to receive their packages at a different location other than their homes or offices. Therefore, your business should offer doorstep parcel delivery to penetrate the market.
When a customer makes an order in an online store or expects a parcel from a friend, there is always some level of anticipation as they wait for the delivery. If your business does not have in place a way of tracking parcels in transit, then it is likely that clients will not use your service again. It is especially the case if the product in question is valuable or is needed urgently. Tracking helps to keep clients grounded since they rest assured their package is safe in transit.
To learn more about point to point pickup services and other tactics to adopt, be sure to do your due diligence to research your competitors and your options. Consider finding a mentor or parcel delivery service that could advise you as you make your final decisions.