Latest findings indicate that the cost of running a van for courier purposes is reaching between 83p and 93p per mile, depending on the age/type of van etc.

The RAC and other industry experts regularly calculate the costs of running a vehicle, including all the normal things like insurance, depreciation & finance charges (or lease costs), servicing, tyres, fuel and all the other favourites.

However the one vital thing that organisations such as the RAC leave out from these calculations is the time and profit margin elements.  Couriers are not running their vehicle for fun, but as a business, for their livelihood.  So how much do you value your time at?  How much will the markets bear? 

Many couriers are facing customers that are looking to pay as low as 65p a mile, and at those prices, according to the RAC not only would you be doing the job for free, but you'd also be subsidising the costs out of your own pocket.

Setting courier pricing using a price per mile is a simple and easy method.  But it's only useful if your identification and calculation of your costs is accurate.  We would urge all courier to work through their list of costs and regularly revise and update.  Because in an industry like the courier industry, where margins are low, customers unwilling to spend, and contractors intent on squeezing out every possible penny profit, you need to make sure that your costs per mile leave you with a profit per mile.