Got an idea, what do you think?

[RyanJ]

I know a big network of couriers and people who transport items. I was thinking I could hand out leaflets and network to meet people who wanted items transporting for cheap. People who are picking up items on the way back see it as pure profit so it's quite cheap and I could provide a service for much cheaper service than most couriers. Do you think it could be a viable business model?

 

[Psl]

I know a big network of couriers and people who transport items. I was thinking I could hand out leaflets and network to meet people who wanted items transporting for cheap. People who are picking up items on the way back see it as pure profit so it's quite cheap and I could provide a service for much cheaper service than most couriers. Do you think it could be a viable business model?

What are you proposing?

 

[DavidAshdown]

It's called a return load and is quite common in the transport industry. However, if the couriers you are talking to are not part of such a group, then its possible it doesn't fit their business.

 

[RyanJ]

I'm talking about being a middle man for businesses. So if a business needs something picking up or dropping off I can give them a competitive price, book someone who is going that way. I pay the courier and then invoice the business.

 

[DavidAshdown]

There's already quite a few of them about "returnloads" and "Loadup" for example
and would take sometime to build up a big network. Not being negative but I don't think handing out leaflets and networking will be enough to build up enough customers and then you've still got to compete on price.

How do you propose approaching customers ?

 

[RyanJ]

I'm not talking about about massive loads such as lorries but smaller loads. If people were already using these sites why would they be paying couriers 80 + a mile? Also I don't know if they would bother with the sites if it was once or twice a week. But I could potentially manage getting them a better price.

 

[DavidAshdown]

Wouldn't customers just use overnight couriers such as Citylink, APC and the like ?

 

[RyanJ]

It would be cheaper and if people would just use them, why are there small independent courier companies?

 

[DavidAshdown]

Usually for same day jobs, which is a possibility in regard to what your talking about but not always logistically possible. Can you give a bit more of an idea of how it would work and how you would get customers ?

 

[RyanJ]

I would network and hand out leaflets advertising about low cost transport. If a customer say needed a ride-on-lawnmower I would contact people and see if someone was going in the same direction and find the lowest price for them, add a small margin on it and contact them back.

 

[DavidAshdown]

Network and hand out leaflets to businesses in your town you mean ?

 

[RyanJ]

Probably the few surrounding shires as well. Don't you think I'd be able to build up at network?

 

[DavidAshdown]

I think it would be quite difficult to be honest.

Most people send products overnight, which is the cheapest way. If they want same day because its urgent, then you would need to very quickly phone around every courier in the area that he is planning on sending his product to and hope that they have someone in your area doing another same day delivery at a time that coincides with the one that needs to be picked up.

Logistically, I can't see that this is achievable.

 

[RyanJ]

Not all deliveries are the same day, every time I buy online it seems to be 3 - 5 working days?

 

[DavidAshdown]

Yes, but how much do you pay ?

As I say, overnight or 3 - 5 days is covered by all the likes of Citylink etc and you won't be able to compete with them.

 

[RyanJ]

Do I pay for the deliver online or for the delivery of a package by a courier?

I don't know why you say you can't compete with their prices as there are tons of courier services. Also I would do larger items than city link are usually used for. I got a quote from DHL, twenty four pounds for thirteen miles. The vast majority can compete with that.

 

[DavidAshdown]

Give me a couple of examples with how you would operate?

 

[RyanJ]

Customer needs a pallet, item of furniture, vehicle, ride-on-lawnmower or something moving from A to B. I find people who are travelling in the same direction and get a cheap price from them. Then add a margin onto then contact the customer with the quote.

I could do it where I have a set price but it wouldn't always be the cheaper for the customer.

 

[DavidAshdown]

Yes I understand the theory, I was thinking more in terms of an example in practice.

I phone you at 11am, I want to move my box weighing 25 kg's from your home town to a town 50 miles away. I also have a pallet I want going to another town 80 miles away in another direction. I could do the first one on a 2 - 3 day service for about £10 and the other for about £75 but I'm interested in getting them there today. So what do you do ?

It's now late morning. How do you find the people going from your town (who happen to be there at that moment or very soon after), to the other two towns, and in the case of the pallet, have the lifting capacity?

 

[Moneyman]

This is where the bigger operators make their money. It is fairly rare for a lorry to come back empty. there are already loads of people operating in this field and computer systems that match it all.

 

[DavidAshdown]

Yes totally agree. The smaller items are picked up by the overnight boys and the bigger items are organised via return load operators.

I was wondering if the OP had an alternative idea which I can't see at the moment.

 

[help4545]

In my opinion having worked in the industry ideas like this are killing the courier industry.

Couriers take back loads, but they need customers who pay full price FIRST.

If we lose the customer paying full price you lose backloads you lose the courier industry. Giving the customers ideas that couriers can work for pennies is crazy.

Take the parcel industry city link who offer parcel monkey there cheap rates for any customers. City link are now over worked and losing millions ever year.

Every one can be a busy fool.

 

[DavidAshdown]

I agree, I was involved in the industry in the 80's and 90's and since then many couriers have disappeared due mainly to the very low rates.

I think the principle of back loads is good, as it's a useful addition to a courier who may have an empty van but setting up such a system is quite involved and not as simple as networking and handing out a few leaflets.

 

[The Byre]

Ryan, you seem determined to set up some sort of transport company and you are scattering ideas to the wind and (TBH) trying to reinvent the wheel.

Why not contact Pallex, who are now moving into home deliveries and talk to them about getting a franchise for your area?

 

[DavidAshdown]

When you say you have a lot of contacts in the courier industry, have you discussed it with them ? What is their feedback?

 

[Gecko001]

Many people just do not realise that local transporters such as removals firms will take part loads. All you have to do is ask and them if they are going to X in the near future and if they are and think there will be room in the van they possibly will give you a price. They generally do not advertise the service as it I suppose could be a hassle if they were inundated with requests. There might be a market there for the OP.

 

[DavidAshdown]

I've seen it tried a couple of times before, which is why I was waiting to see if the OP had a different concept on how it would work.

You would need a computer system to send out the requests automatically. You would need a lot of couriers to sign up for the service. Conversely you would need a lot of customers to sign up to it too.

Both those parts are a big job in themselves.

You would then hope that you had a sufficient number on enquiries that resulted in their being a courier empty in point A, going to point B at the required time bearing in mind it is still a large country and a lot of square miles to cover.

Not a new idea but one that has never worked as far as I know, because logistically it is a mammoth task.

 

[HobbyMounts]

This sounds like the business model of Shiply or similar?

You go online, add your item details, collection address, delivery address and people quote for your business. Usually the cheaper people are the people who are in the area and coming your way.