The pandemic has triggered a significant change in online shopping. It also changed the consumers’ shopping online shopping behaviors, leading to more demand for transporting goods and other items. Hence, many see it as a great opportunity to start a postage business.
But just like any other business, starting a postage business is not easy. You have to weigh in a lot of options and be able to make sound decisions to ensure its growth and provide quality service to your customers.
What are these? Here are some decisions you need to make when starting a postage business.
Which Fleet Should I Use?
Since you will be transporting various items and goods a lot, one of the first things you need to decide on is the fleet you’ll be utilizing. This is crucial as this should ensure that every package is transported carefully and fast at the same time to their respective receivers.
However, note that each type of vehicle fleet comes with its own pros and cons. Truck fleets, for instance, may be able to carry large items but they might cost more too. Cars and taxi cab fleets, on the other hand, can carry limited packages but are more affordable.
Do You Need a Franking Machine?
Manual tasks in the postage business can be challenging, especially when your business starts to grow. Aside from consuming your energy, this will also take up so much of your time. Thus, affecting the flow of your business and your customers’ satisfaction.
Thus, you will need pieces of equipment that will make tasks more convenient for you and your workers. For instance, a frank machine can help you speed up your tasks. This will also save you money in numerous ways. If you’re on a tight budget, you can just rent one out. But if you already have a budget, investing in one is more ideal to save you more money in the long run.
How Should You Brand Your Business?
Branding is important in the business world. This is because branding allows your customers to know what they should expect from you. Aside from that, it is also a way to distinguish your company from your competitors.
That said, you need to decide how your brand should appear to your customers. Additionally, it will help your customers distinguish you from your competitors, clarifying what makes you a better choice.
Thus, from your postage business’ name to your tagline, make sure that everything is related and strongly shows how you want people to see your brand. Even your logo and your chosen color are crucial in branding, so choose wisely.
How Much Should You Charge?
Truth be told, many consumers usually go for more affordable postage services. However, as a business owner, you should also ensure that your employees are well-paid. Not only because it can affect your brand’s image but also because your employees are the backbone of your business. Thus, you need to take care of them too.
That said, it’s important to charge fairly too. There are three factors that you can use to determine how much you should charge: handling fee, packaging, and shipping. And each of them is computed differently.
For the handling fee, you’ll need to divide the average number of minutes needed to pack an item by 60. Then multiply it by your employee’s hourly rate.
For the packaging, you’ll need to audit your budget for your packaging materials first. This will help you figure out the cost of all your expenses, so you can calculate them into your handling and shipping fees.
As for the shipping, it’s usually determined by the dimensions and the weight of the package. The destination can also play a role in the pricing.
Who Should You Hire?
Deciding on who to hire should also be given attention. Remember, they will be the ones who will accommodate your clients, so you need to choose someone who knows the job. Or, if you’re okay with hiring newbies, look for someone who is a fast learner and trustworthy.
It’s also worth thinking about if you will hire an in-house team or outsourced service providers. Each of them has its advantages and disadvantages too, which will be helpful depending on your situation and preference.
This year is a great time to start a postage business. However, to ensure your success, you need to know how you can accommodate your customers’ needs while also not sacrificing your business and your employees’ wellness. Thus, you need to have prior knowledge in the field and be able to make sound decisions.