Engaging courier services in Singapore is a much better idea then trying to hire your own deliveryman and get your items delivered – even for companies with high volumes of deliveries and here are the reasons why.
- If you were to engage a deliveryman in Singapore, you would probably need to pay them around $1800 for their salary and CPF on top of that. You would also need to lease a vehicle (e.g. a van) for the deliveryman and that would cost around $1000 per month. Altogether, you’re looking at a cost of around $3500 per month. This means that for it to make sense to hire your own deliveryman, you should make more than $3500 per month of operating profit from whatever products he or she is delivering to your customers. Assuming you’re selling a rather low profit product at $10 profit per product, the deliveryman would need to deliver a bare minimum of 350 products per month before you break even! Since there are approximately 22 working days in a month in Singapore, This means that he would need to deliver to 16 locations everyday just for you to break even. That sounds like a crazy number to me. If you have such high volume of deliveries, e.g. 350 per month, each delivery would probably cost you only $6 to $8 if you were to engage a courier company to deal with it for you instead. It is so much easier to profit or at least break even if you were to engage external courier services in Singapore instead of hiring your own deliveryman!
- When you use courier services, you need not worry about who is going to deliver the items. You just need to specify the date, time, collection point and delivery point. The rest, for example the courier’s leave schedule e.t.c., would be handled accordingly by the courier company. You would not need to worry about the courier skiving, going on leave, taking medical leave, e.t.c. All these problems would be gone!
If you need to engage a good courier company, try PCA Masters Singapore.