How to Bid on Delivery Jobs

bizfluent article image

Jupiterimages/ Images

Delivery companies offer important services for other businesses and consumers. The U.S. Bureau of Labor Statistics says more than 834,000 people worked as truck drivers and light delivery service operators, or in delivery companies, in 2009, with a mean annual salary of $31,000. The most difficult job in bidding on delivery jobs comes in initially setting up charges and fees, but once that is done, fees need only an occasional review and update.

Develop a delivery checklist. Determine the services your company offers, and stand by the list. Don't be persuaded to deliver items that require special equipment, such as refrigerated transportation, or handling, such as moving artwork, if your company doesn't have the delivery equipment or staff members to complete the job. Format the checklist using a graphic organizer so any of your employees or the client can use the list to determine exact costs. Your fees will appear less arbitrary with a written checklist. The list also makes your estimating job easier.

Determine secondary charges, and build these into your bid. If your delivery business focuses on small courier services, you may not require the assistance of support staff. But if your company delivers large numbers of documents over a short period of time, hiring an assistant may pay off with additional business. Anticipate secondary charges, and research the fees necessary to provide the services to customers. Hiring additional physical help for delivery movers may make your company more marketable to clients with larger homes and additional furnishings. Other secondary charges include navigational systems and software, as well as business and transportation licenses.

Determine inflationary business costs, and build these into your bid. The price of gasoline is one example of the cost of doing business influenced by inflationary prices. Other potential inflationary costs for a delivery service are insurance expenses. Anticipate inflationary prices to keep company fees somewhat stable throughout the year. Return customers will anticipate a fee close to the earlier charges, and massive cost increases may undermine the customers’ trust in your company.

Add costs for future equipment purchase and replacement. Build in a percentage for future replacement of delivery equipment, and add this figure to your total costs. Amortize the replacement costs over the life of the item. Two important things to consider are the payback period and the return on investment prior to adding or replacing equipment. The payback period is the time it takes to recoup the entire amount paid for the investment. The return on the investment accounts for the average net income from the expenditure and is usually written as a percentage of the investment amount. Both of these considerations need evaluation before buying or replacing equipment.

Develop a formal letter to be sent or emailed with your bid. Establishing a business relationship with a potential client is important, but developing a rapport with a client will capture the delivery job over a competitor. Write a business letter to accompany your delivery bid showing your company's special skills and features.