Know-How Exchange : Strategy

你能做一些竞争购物发现what other people would charge him? There are a variety of ways to establish pricing based on competitive pricing, what the market will bear, what you need to get paid plus overhead/expenses/liability, etc. I would talk to people in the transportation/shipping business to see what advice they could give you. Sounds like a nice opportunity, just make sure you have a good handle on your current and future expenses and liabilities as a contractor.

I agree with pamelah about checking competitive rates in similar situations, but, regardless of what others charge, your business may be set up differently so definitely start by making sure you're covering ALL costs and making a reasonable profit on the venture.

For example, include vehicle depreciation and operating costs (fuel, oil, maintenance/wear & tear on brakes, engine, tires, transmission, etc.: gas costs are a fraction of total vehicle operating costs - an old rule of thumb is ~30%) any special driving or hazmat licensing/operating costs, overhead, your fully-loaded time (to both pick up and deliver as well as manage the account), risk & insurance, etc.

Ensure you're covered on both time and mileage - especially if there are issues such as a customer not available to take a delivery, weather/traffic problems, a change in delivery address, etc.

Also, make sure your business and insurance contracts delineate who is responsible for both the vehicle and it's load/contents in the event of an accident, theft, natural disaster - it's not "your property" so you may need a different license or insurance rider as a contractor.

-Steve

Sounds to me like you are taking the role of a distributor for this guy. Doing this by "trip" is the last method i would choose. Here are 2 other options to consider.

1) What does it cost him to get the parts to these 8 stops currently? He has to be expecting you to do it for the same, or less...not more. So if you can find the "baseline" so to speak, that is your starting point for negotiation. The result of the negotiation has to leave you enough to cover the costs the other 2 commenters have mentioned (gas, maint., hazmat license, etc.) and make a profit that's to your liking.

2) If you can't find out what #1 is, then another option is to price it as "distribution cost PER CUSTOMER." Not sure why you would do it by trip - what if your route changes? What if one of the eight goes out of business?

What does a customer pay for parts? A portion has to be turned over to you for providing the delivery - this is your old boss's NEW DISTRIBUTION EXPENSE (altho of couurse it might not be each customer that pays you but rather the boss when you hand in your delivery paperwork). Is it 10% of the battery wholesale cost? 20%? As an example, let's say all in an 8-stop swing costs you $800 on average (all costs allocated in). On average that is $100 per customer/stop. You want some profit, so let's say $150. If you tack that on, will your boss be willing to bear it (by having each customer pick up that $150)? Maybe it is already built in to his margin, meaning he is already charging customers $150-plus to cover distribution.

Long story short - figure your costs on a per customer basis, and find out if current pricing structure will allow both you and the boss to profit. Trying to do this without knowing your boss's cost structure will leave you guessing.

I guess what I'm having trouble with is seeing how this can be a win-win situation.

If you change your billing structure, and if you continue to work with this one single client, I do not see how it can become better for both of you. It sounds to me as though you are increasing your risks without much of a significant upside.

I can understand why your client would want to do this: it seems to lower his costs and risks. But why is it a good idea for you? Could you add additional lines, and sell other products on these trips?