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Profit in Logistics?

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  • 09-12-2005 4:37pm
    #1
    jetsonx
    Registered Users Posts: 1,326 ✭✭✭


    If you buy a large piece of equipment that has to be delivered to your
    house/premisess and the delivery costs €15...how does the delivery company make money on this ?

    With the traffic problem in Dublin it might take their van up to 2.5 hrs to deliver it - all for €15 hr -cheaper than a taxi....how is it done so cheap taking into account insurance has to be payed, driver has to be payed, fuel costs etc?


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    #2
    Kinetic^
    Closed Accounts Posts: 13,249 ✭✭✭✭Kinetic^


    jetsonx wrote:
    If you buy a large piece of equipment that has to be delivered to your
    house/premisess and the delivery costs €15...how does the delivery company make money on this ?

    With the traffic problem in Dublin it might take their van up to 2.5 hrs to deliver it - all for €15 hr -cheaper than a taxi....how is it done so cheap taking into account insurance has to be payed, driver has to be payed, fuel costs etc?


    He'll have other stuff on board that will be needed to be dropped off, you're not going to be the only person getting something delivered to that area.


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    #3
    BrianD
    Closed Accounts Posts: 7,221 ✭✭✭BrianD


    The seller might subsidise the delivery to increase sales. Many buyers might be put off buying if they had to arrange the delivery themselves.

    The delivery may be same even if you are two doors down from the store or 20 km away.

    Most times the delivery will be a groupage deal i.e the van is delivering to a number of addresses in the area.


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    #4
    Lump
    Registered Users Posts: 10,984 ✭✭✭✭Lump


    jetsonx wrote:
    If you buy a large piece of equipment that has to be delivered to your
    house/premisess and the delivery costs €15...how does the delivery company make money on this ?

    With the traffic problem in Dublin it might take their van up to 2.5 hrs to deliver it - all for €15 hr -cheaper than a taxi....how is it done so cheap taking into account insurance has to be payed, driver has to be payed, fuel costs etc?

    A Van can carry a lot of stuff. Hence there being different costs. IE, same day is expensive, because normally companies will hold items in their warehouse until they have X amount of items to go to an area! Obviously it'll arrive on the day you've paid for, like 1 day, 3 day, 5 day etc.

    John


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