Friday, March 7th, 2014

How to Subcontract Yourself to another Courier Service

5

At any stage of development in your courier service you will need to remain constantly aware of your competition. Not only because they could be offering better prices and winning away possible customers, but because they could be a source of income that you are leaving entirely untapped.

How can the competition bring income to your business? As a courier you will experience periods of incredible busyness and you may also experience painfully slow times too.

When you have time to spare you may be able to subcontract yourself out to a busier competitor.

Of course there are other reasons to remain on good terms with the competition, and this includes times when they cannot accept work offered to them, but know that you can do so instead. For instance, let’s say that you offer transportation locally and to long-distance locations, but your competitor does not.

If you are on good terms with them they will usually recommend you to a customer seeking such options.

Remember, however, that there may be times when a competitor still wants a “slice” of the profits on subcontracted work. If this is the case, the wisest course of action is to sit down with a legal professional and draft a simple and reusable contract which outlines the terms of the deal.

For instance, as the subcontractor you should be entitled to a larger share of the profits because you are doing the actual work and taking the financial risks, and a competitor who wants the larger portion is not being realistic. Instead of risking some sort of problems or arguments, you can simply have a standing contract where the terms are clearly outlined each time work is sent in your direction.

Before assuming that any other courier service will want to make such arrangements you should take some time to do the research, call their offices and introduce yourself, and generally get a good idea of each service. After that you can approach them with your offer to work on a subcontractor basis.

Comments

5 Responses to “How to Subcontract Yourself to another Courier Service”
  1. given says:

    Im thinking of buying a van to subcontract to courier companies. How do I go about doing that or what else do I need besides the van. And how are My chances?

  2. Michael Lesmes says:

    Should I contact them letting them know I am also running a courier business? Wouldn’t most just hang up on me and not want to help me out? I don’t understand. I get how they may have to turn away jobs from time to time. If it were me it would be someone just available to drive for me, not someone available but also trying to market their competing services as to my clients. Please elaborate on a proper approach to market my business as well as obtain business from other couriers in the same areas.

  3. Kim Mobley says:

    We are having trouble recieving pay for jobs performed. This would be a percentage of the amout paid to the company by a customer. The U.S. Labor board does not know how to collect this, they are treating it as though we are a paid employee of the company and not a subcontractor. Any suggestions?

    • Sam Knowlton says:

      Kim,

      I’m not sure I understand your question. Are you saying that a primary contractor is refusing to pay you for work you have already performed as a subcontractor? If so, it sounds like you need to talk to an attorney.

      If you mean that other courier services are unwilling to hire you as a subcontractor because of the taxation rules, well, it sounds like you need to keep looking for primary contractors who know their trade better.

      Best regards,
      Sam

      • Kim Mobley says:

        Sam, The courier service is not paying their subcontractors. We have since quit delivering for them. I took your advice and have contacted a labor law attorney. The courier company owes others as well. Thank you for your prompt repy. Kim

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