What Rate Does Your Courier Service Provider Pay Its Drivers?

Avango Couriers Manchester Small Van Illustration

We’re a small business and we know that every penny matters. You want to get value for money on your deliveries. Your courier service provider wants to make a profit, which is only fair. That’s what we’re all here to do – make money for ourselves. But have you ever considered how the costs for your delivery breaks down?

We do a variety of work – some for ourselves, some for other transport providers.

When we work for other people it’s typically known as ‘sub-contracting’. It’s a common practice in many industries. Bigger companies tend to win contracts and tenders, then they bring in smaller businesses to actually provide the services.

It’s done in construction, manufacturing, transport – lots of places.#

Why does it matter to my business what the sub-contractor gets paid?

What you need to understand as a customer, is how much of your fee is going to the actual service provider, and how much gets siphoned off by the ‘middle-man’ who’s just passing the work along the chain.

We know from experience that some transport companies are taking the vast portion of your fee and giving the drivers the smaller share.

Here’s an example:

In a delivery job we handled for another courier company a short while ago, we were tasked with carrying one pallet of goods from Warrington to Skelmersdale. A journey of around 23 miles.

The vehicle requested was a Long-wheelbase van, but it had to be able to carry over 700Kg due to weight of the goods.

The customer handed us some paperwork which showed what they had paid for the work. And we (obviously) knew what we were getting paid and were able to calculate the difference with ease.

The customer had paid more than DOUBLE what we were being paid for the job.

We were given £30 to carry the goods
Customer paid £75 + VAT for the delivery
The company that passed us the work pocketed £45 + VAT just to do a couple of emails and a phone-call.

This happened in 2021, before the ridiculous prices rises in Diesel, but the margins have hardly changed in 2022.

If you knew how your bill for same day courier services was broken down and you found out more than 50% of your fee was just ‘admin’, would you still hire the same company?

What makes Avango Couriers different?

We know independent self-employed drivers are essential in this industry. EVERY large courier company relies on them. And so we’ve implemented a FIXED payment structure that sees the owner-drivers we ask to work for us, get the majority of the fee charged to the customer.

Our pricing scale – Minimum Charge Deliveries

The prices shown below are what we charge NEW customers on a set tariff AFTER the 10% Discount is applied on both minimum charge deliveries (within a set radius of collection point) and the mileage rate for long distance.

Van SizeOur Min Fee (after discount)Driver Earns
Small Van£45£27
Midi/SWB Van£49.50£32.50
Large Van£54£37
Extra-Large Van£63£44
Avango Couriers takes £17 of each minimum charge for all van sizes, which is well below industry average – giving the driver much better rates.

Our pricing scale – Mileage Rates

Van SizeOur Mileage Rate (after discount)Driver Earns
Small Van£1.08£0.86
Midi/SWB Van£1.26£1.00
Large Van£1.35£1.10
Extra-Large Van£1.44£1.15
Avango Couriers takes approximately 20% of each mileage rate for all van sizes, which is far below industry average, meaning drivers earn more.

Ready to make a change that sees drivers earn more?

If you want to make sure the money you spend on couriers goes to the driver instead of on admin, make sure to call us on 03333 050204 today for competitive delivery quotes.

Call now on 03333 050204 (local rate)

Let's see what we can achieve together.

We are a local delivery service provider with nationwide coverage. Whether you need help with a single delivery or daily distribution, just call!