There are several ways to set up a local delivery service. These include identifying the products with the highest margins and hiring independent contractors or employees. You should also plan your logistics and promote your service. Here are some steps you should take to get started: 1. Establish priorities for all delivery orders.
Limit Local Delivery to Products with Higher Margins
If you’re trying to save money, limit local delivery to your most profitable products. You can justify charging a delivery fee for certain items if your margins are high. However, local delivery might not make financial sense if your margins are low. Instead, offer free shipping on select products and limit local delivery to products that meet a certain price threshold.
For example, a sports equipment store shouldn’t offer local delivery of t-shirts. Instead, only deliver high-margin sports equipment. The same goes for heavy products. Local delivery like local delivery service Valdosta GA isn’t cost-effective for large, bulky products. Plus, customers are likely to pay more for the delivery of more severe products.
In addition to driving more sales, local delivery helps businesses develop valuable customer relationships. Customers are likelier to stay loyal to a company if the experience is positive. Research shows that 96% of customers cite a positive experience as their top reason for sticking with a company. As a business owner, you can’t afford to overlook the power of customer service. With that in mind, shape your service around four essential aspects:
Hire Independent Contractors or Employees
When establishing a local delivery service, you have two options – you can hire independent contractors or hire employees. Independent contractors are non-employees who offer their services on a project or fixed-term basis. They have a set job and no other obligations outside the engagement. While it can be tempting to hire an employee, the reality is that it’s often cheaper to hire independent contractors. In addition, independent contractors will be flexible with your schedule and often have lower overheads.
If you’d like to hire employees, you’ll want to ensure they have the right experience. While independent contractors can deliver the goods, you’ll want to ensure they’re reliable and have clean driving records. Also, you’ll need to ensure that your drivers have the proper insurance, and you can’t rely on their automobile insurance to protect you from accidents or damage.
If you’re unsure about hiring employees, consider using third-party partnerships to meet your delivery needs. For example, DoorDash offers a fleet of drivers that businesses can use for deliveries within a defined radius. Alternatively, you can use your drivers for local deliveries and partner with Dashers for deliveries outside the radius.
Plan Your Logistics
As a local delivery service, you must consider the logistics involved. There are several factors to consider, including the location of your service and the type of product you plan to deliver. While some challenges are predictable and can be overcome by proactive planning, others may arise unexpectedly. Regardless of your business’s challenges, a well-planned logistics operation will help you meet customer expectations.
You must first understand the market and your competitors when planning your logistics. This can include identifying your tier-one competitors, your best-practice reference companies, your competitive landscape, and your unique selling points. It would help if you also thought about how much you’ll need to invest in marketing.
Your logistics plan should show your business’s current business and outline a growth plan over the next five years. The program should explain your business goals, how you will reach them, and how to measure your success. It’s a vital document that will improve your chances of success and help you raise the funds you need to grow your business. You should review it yearly to ensure that you’re on the right track to success.
Promote Your Service
Whether you sell goods online or in-store, local delivery is an excellent way to connect with customers in your area. This service offers a new customer experience and unique packaging and promotions. In addition, it enables your business to reach a broader customer base, resulting in increased sales.
Whether you’re a new business or a seasoned veteran, there’s no better time to promote your local delivery service than now. With the emergence of social media, this trend is growing and can help your business flourish. In addition, social media has become a vital component of the buying process for consumers, from finding the best deals to reading product reviews.
In addition to social media, consider leveraging digital marketing tools to boost your visibility. For instance, you can incorporate local delivery information on your website’s shipping policy page or checkout pages. In addition, email marketing and paid ads targeting your local area can help you generate awareness and encourage conversions.