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Page 46
Page 48
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PACKAGE
For van operators the sums are smaller and the weight of rules lighter. And, as Tim Maughan finds, profits
are better too.
The arithmetic of courier operations is markedly different from that of haulage. Vehicle weights are tiny in comparison, loads are correspondingly small, overheads are modest — and, significantly, margins are substantially higher.
The arithmetic of courier operations is markedly different from that of haulage. Vehicle weights are tiny in comparison, loads are correspondingly small, overheads are modest — and, significantly, margins are substantially higher.
The arithmetic of courier operations is markedly different from that of haulage. Vehicle weights are tiny in comparison, loads are correspondingly small, overheads are modest — and, significantly, margins are substantially higher.
All these factors come to light when we visit Newcastle-based Black Cat Couriers. Paul King is managing director. "Today has been a nightmare so far," he complains. "We had a Sprinter that did not start, which meant we lost three hours this morning, and it's the last working day before Easter."
All these factors come to light when we visit Newcastle-based Black Cat Couriers. Paul King is managing director. "Today has been a nightmare so far," he complains. "We had a Sprinter that did not start, which meant we lost three hours this morning, and it's the last working day before Easter."
Setbacks such as this, allied with the cut-andthrust of courier work, can make for a stressful living. King used to work as a sales manager, selling offshore fishing gear.This market declined, prompting him to invest in a Citroen van in 1999. "TNT were offering same-day delivery work, and I fancied the idea of having no sales targets and no boss."
Setbacks such as this, allied with the cut-andthrust of courier work, can make for a stressful living. King used to work as a sales manager, selling offshore fishing gear.This market declined, prompting him to invest in a Citroen van in 1999. "TNT were offering same-day delivery work, and I fancied the idea of having no sales targets and no boss."
Setbacks such as this, allied with the cut-andthrust of courier work, can make for a stressful living. King used to work as a sales manager, selling offshore fishing gear.This market declined, prompting him to invest in a Citroen van in 1999. "TNT were offering same-day delivery work, and I fancied the idea of having no sales targets and no boss."
Setbacks such as this, allied with the cut-andthrust of courier work, can make for a stressful living. King used to work as a sales manager, selling offshore fishing gear.This market declined, prompting him to invest in a Citroen van in 1999. "TNT were offering same-day delivery work, and I fancied the idea of having no sales targets and no boss." King owned the van, although it was in TNT's livery. In 2001, he decided to upgrade from sole trader to MD, and Black Cat was born. "I thought the name might have been a bit lucky," he quip&
Luck can play a part, but hard graft is the essential ingredient for anyone who wants a courier outfit to flourish. The Black Cat fleet is eight strong: King runs an Iveco 7.5-tonne curtainsider, a Daf 7.5 tonne box van, three 3.5 tonne Mercedes-Benz Sprinters, one Ford Transit and two Citroen Berlingos.
Subcontracting forms 40% of the business, much of it for DFDS, and the other 60% is work directly for customers. King is not bound by a single contract and all trips are conducted on a same-day basis. Journeys can belong, and appear at short notice. "We have had calls at 6pm from London offices, asking for a package to be delivered the same night," says King. On nocturnal jobs like these, Black Cat drivers, or King himself, hand over a consignment to a security guard.
Subcontracting forms 40% of the business, much of it for DFDS, and the other 60% is work directly for customers. King is not bound by a single contract and all trips are conducted on a same-day basis. Journeys can belong, and appear at short notice. "We have had calls at 6pm from London offices, asking for a package to be delivered the same night," says King. On nocturnal jobs like these, Black Cat drivers, or King himself, hand over a consignment to a security guard.
Rated at perfection
Often truck operators work on the basis of rates per consignment. Couriers like King, though, charge by the mile. King stresses the "round trip" tariff policy.A customer pays 50p per mile for a Sprinter. A 260-mile trip, then, effectively becomes 520 miles which attracts a fee of £260.
Often truck operators work on the basis of rates per consignment. Couriers like King, though, charge by the mile. King stresses the "round trip" tariff policy.A customer pays 50p per mile for a Sprinter. A 260-mile trip, then, effectively becomes 520 miles which attracts a fee of £260.
The entire fleet makes between 10 and 15 trips a day. Pallets and documents are the most common loads. "90% of vehicles run back empty. We backload occasionally but we find that it can be more hassle than it is worth."
King is adamant that he will not chase backloads.This is partly a question of integrity. He says that valued customers pay for a dedicated journey, and that their trip should not be compromised by any potential setbacks.
Single consignments characterise King's business."We don't have anywhere near the volumes of the gxoupage guys, it's a completely different mentality to what a large haulier does."
Masses of loads can be placed in a curtainsider but couriers have to be selective about what they drop into a van. King elaborates. "We have had a constant battle in the past few weeks; too many small vans in the fleet and you can't carry a large load, then you get a standard pallet, which needs a larger van, which means the small vans stand idle!"
This is a quandary, but King's hassled tone becomes more positive when he mentions "Sprinter". If ever there was a perfect machine for a courier business it would, asserts King, be the Mercedes-Benz Sprinter.
The long-wheelbase Sprinters, which offer a 1,700kg payload, and do 26 miles to the gallon, are the ultimate tool, he believes."At the moment there is nothing to beat them," he says decisively. The threshold between vans and trucks means that mathematics are always on King's mind.
With his 7.5-tonners, King prices up a particular job before the trip, and the customer pays an agreed rate, as with conventional haulage. Canny planning is important: where he can, King ensures that vehicles are fully accountable. He strives to transport smaller loads in the Citroens, but sometimes they are busy— then King has to use a Sprinter.
CM often hears operators talk about the importance of keeping the customer happy. Black Cat Couriers definitely adheres to this principle. King says:"I don't think there is any advantage going over 3.5 tonnes; we only do it because the customer demands it. For years I tried to keep the fleet under 3.5 tonnes."
So near, so far
Above 3.5 tonnes, tachographs and 0-licences enter the frame. Some customers like 7.5tonners, but entry into heavy vehicle territory automatically brings a whole new swathe of red tape. Recently, one of King's 7.5-tonners was caught up in congestion. On its return from Aberdeen, the driver ran out of hours, just three miles from home.There were three choices: break the law and Recently, one of King's 7.5-tonners was caught up in congestion. On its return from Aberdeen, the driver ran out of hours, just three miles from home.There were three choices: break the law and Recently, one of King's 7.5-tonners was caught up in congestion. On its return from Aberdeen, the driver ran out of hours, just three miles from home.There were three choices: break the law and drive it (not advisable!) sleep in the greireanommoli cab, or send another driver to collect
the truck. King took the third option.
Nine times out of 10, says King, a Ford Transit-sized van pulling a trailer would need to be covered by an 0-licence. A trailer full of insulation would not push such a vehicle over the threshold, but a Transit/ trailer combination with a heavier load would. So a single trailer can also push a courier into the land of the heavies. •