The 10 year U.S. Treasuries have now hit an all time low. That means your local bank (may) pay your 1% on the cash you have deposited on hand.
How about if you could make a 25% return on some of your assets? We are talking about each of your delivery trucks of course.
The average florist spends about $4,000 a month to put a full-time driver on the road (salary and benefits), plus vehicle lease/loan, fuel, and maintenance.
That is a $48,000 resource per year just waiting to generate income. The average florist says we hope to "break even" on delivery charges. Why is that so? Does anyone think Fed Ex and UPS just hope to "break even" on delivery charges? It does not have to be that way.
If a florist moves from a fixed flat delivery charge per zip code to a variable delivery charge based on priority (such as by 10:30am, by noon, etc.), they will normally see a 20% increase in delivery revenues. Add to that same truck an optimized route planning trip tool, and you will save another 10-15% on fuel and labor per month.
· $12 for delivery to 90210
· $12 for delivery by 6pm
· $14 for delivery by 4pm
· $18 for delivery by noon
· $29 for delivery by 10:30am
· $39 for exact time delivery
All of the sudden, that $4,000 resource is now generating an extra $1,000 a month in revenue. Bingo, 25% return without investing a single dollar.
Don't settle for "break even" on delivery services. No one else in the delivery service industry does, nor should you.
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