Whether expanding your current business model to adapt to changing times or starting from scratch – delivery services are in hot demand. But creating a delivery scheme isn’t just about acquiring some delivery vehicles. There are many things to consider when obtaining a vehicle for business purposes. Read on to see what goes into starting a delivery service and acquiring vans for delivery, plus download our free checklist to help guide you through purchasing a delivery vehicle.
Market Analysis is Essential
What is your idea, what are your competitors doing and where do you want to go? Setting up a delivery service sounds exciting – but very few people know exactly how the process works. At best, delivery vehicles work like a well-oiled machine. At worst, you have just wasted a lot of money and seriously hurt the reputation of your business. Business owners need a good idea that appeals to people with purchasing power.
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Get a free checklist to help purchase delivery vehicles
Delivering Less is Sometimes Better
We have all had that experience with a restaurant whose menu is so overloaded with dishes that it is hard to make a decision. Trying to do too much can often weaken the quality of your service. If you have decided to invest in vans for delivery, you should first ask yourself what exactly you want to deliver. Operators of a delivery service can either transport everything or specialise in one product group. There is no right or wrong option: it depends on the circumstances.
If you offer everything, you may reach more people, but you are entering an area with many competitors and tough competition. As a company with a delivery service, you have to score points with the customer through quality. Businesses who specialize with one service may appeal to a much smaller customer base. But the competition is often smaller, offering more opportunities to position the business effectively within the market.
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Delivery Vehicles Are In Demand
It shouldn’t surprise most that there has been a drastic increase in the use of delivery services this past year. Even our general attitudes toward delivery drivers have changed according to a study done by Fleet News. Though the situation in 2020 has been unprecedented, the movement towards having more delivery vehicles on the road was already an upward trend.
In general, people have less time and more to do, thus preferring a delivery option to reduce stress. Furthermore, the population of people reaching an advanced age is ever growing and many are restricted in their mobility.
Increasingly, restaurants that previously served their guests only locally are expanding their range of delivery services. The out-of-home market has been growing strongly for years. Time spent together with the family and participating in leisure activities like hobbies and travel, are displacing tasks such as mandatory weekend shopping.
All in all, these are conditions in which a delivery service schema can strive.
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Acquiring Vans for Delivery
Whether starting from scratch or just looking to expand, owners of a delivery service must of course know the basic knowledge of fleet management. This includes the legal form of the company, but also the leasing or purchase of vehicles. There are many things to consider when acquiring delivery vehicles, all with advantages and disadvantages:
Using a Vehicle You Already Own
If you already have a business established and are just looking to reach more customers perhaps you don’t need to invest a lot of money into a vehicle. This will depend on both your business and personal situation. Converting a vehicle that you already own into a company car or van for delivery use is probably the most cost-effective option. In this situation you are free to put your money into vehicle maintenance, tracking, or elsewhere in the company.
Purchasing a Used Vehicle
Maybe converting your personal vehicle for business use is not a feasible option for you. Alternatively you can obtain the vehicle you need by purchasing a used vehicle rather than a new one. Vehicles are serious investments, and many people don’t consider the total cost of ownership when they go into purchase one. Opting for a used vehicle could soften the cost of investment.
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Leasing a New Vehicle
If you have thought about your business plan and considered the TCO, acquiring a new vehicle could be the best option for your company. In this case leasing rather than buying delivery vehicles outright is an option.
Time to Manage Your Vehicles
Regardless of how you acquire your vans for delivery, once they are yours you’ll want to manage them properly. You can do this by investing in a digital fleet management software. With a product like Vimcar’s Fleet Geo, you can improve customer service by GPS tracking your delivery vehicles, as well as reduce vehicle misuse, theft, and lower your total fleet costs by 15%.
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