Pickup & Delivery / Van Operators
- Pickup & Delivery / Van Operators Page
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TYPICAL COSTS FOR “NEW” OPERATION DOING CONTRACTED DELIVERY ROUTES
To look at profitability of delivery-type equipment, one must take into account the different key variables that affect each number. A typical delivery truck operation includes the panel vans, pickup trucks and other smaller pieces of equipment. In reviewing the numbers in the following, please reference the background and philosophy used in our tractor-trailer operations overview as it applies to this segment. The key differences are revenue, utilization and actual fuel mileage.
We took $1.12 per mile overall revenue at 4,300 miles per month (200 miles per day). We rolled in a fuel surcharge of $0.10 per mile against an average pump price of $2.50 per gallon. We used a delivery van with an insured value of $15,000, with a payment of $500 per month and getting 13 miles per gallon.
We used revised costs as noted in the fixed and variable cost pages for fuel / cash transaction fees, road and fuel taxes, servicing costs, licensing costs and collision / physical damage insurance.
The results follow for 1,000 miles per week, 4,333 miles per month or 52,000 miles per year:
LEASED TO OTHERS PROFITABILITY SUMMARY
NOTE: Profitability will improve when equipment gets paid down, routes gets established and utilization is improved.