Category Archives: Transport

Buying a van – which one?

Posted on by
2

When buying a new car, most people already have a strong opinion about what they want. Colour, brand, features etc., can be a very personal decision. However, where do you start if you need a new van for your small business, especially if you have not bought one before? This guide will help you understand what you should consider in making your decision about buying a van.

A van is a medium-sized motor vehicle, typically without side windows in the rear section of the body, for transporting goods.

WHY buy a Van?

If you need to transport goods in an enclosed vehicle that will not fit in a car, that needs to be protected from the weather and kept secure whilst still being very maneuverable and economical to run. Then a van might be the answer.

The small van is synonymous with small businesses, whether a tradesman, delivery driver, or even a mobile barista. They offer great cargo carrying capacity whilst driveable on a standard license and can still be easily parked.

WHAT factors should influence my decision when buying a Van?

When considering buying a van, you should evaluate the following:

Specifications
  • Size – When you consider your needs, vans will normally be described as short or long wheelbase, which indicates length. Think about what you need to carry and thus your required dimensions. Width is also key if, for example, you need to be able to load a standard-size pallet in the rear. The bigger the van, the harder it will be to park and maneuver.
  • Roof height – Being able to walk around upright may be a requirement but remember you might now no longer be able to drive into a loading dock or car park that has height restrictions.
  • Payload – What is the maximum weight the van will carry? Note this measure will also have to include vehicle occupants and fuel weight. A twin rear wheel axle will allow additional weight to be carried. It is important to know that a gross vehicle weight over 4.5 tons will require a special driver’s license.
  • Engine – Traditionally, petrol gives better speed whilst diesel provides more pulling power and fuel economy. Another advantage is a diesel engine will have a longer service interval and is designed to do more kilometres keeping your van on the road longer.
  • Drive train – Although more expensive, an automatic transmission may significantly reduce your driving fatigue if you are negotiating city traffic. In the country, an all-wheel-drive variant might be needed to get you where you need to go.
Passenger considerations when buying a van
  • Doors – Door configuration can also be very important depending on how you want to use the van. Say you want to reverse up to a loading dock, then barn-style doors with 180-degree hinges allow you to do this. Sliding doors on both sides allow better access to contents etc. If you have ladders on the roof, will a lifting tailgate allow you to access them?
  • Weekend warrior – If the van will also be your transport during your time off, are there any considerations you need to make, like extra seating or provision to carry a bike or surfboard?
  • Seating– Extra seating is available in some models if your van is to carry the workers and the tools. Indeed most car manufacturers offer a small minivan in the same format for moving up to 12 people (a special driver’s license is required if you have more than 12 seats)
  • Comfort – Vans typically have a very upright seating position. If driving all day, consider this carefully when test-driving vans. You might also be able to pay extra to have more creature comforts like climate control air-conditioning.
Nice to haves when buying a van
  • Parking aids – Rear parking sensors and a camera will greatly assist in reversing into those hard-to-get spaces.
  • Safety features, if available, might save someone’s life or make driving just that much simpler and could include adaptive cruise control, hill start, speed limiters, blind-spot monitoring, autonomous emergency braking, automatic headlights, lane departure, road sign assist, etc.
  • Internal fit-out – You want your van fit for purpose, and lots of options are available and could include interior lining, refrigeration, safety barriers, built-in navigation, racking, draws, tie-down hooks, onboard power, etc.
  • Accessories – A van can become more versatile with optional accessories like roof rack, side awning, roof ladder, interior lighting, towbar, rear step, cargo barrier, grab handles, etc.
  • Branding – A van is also a mobile billboard and gives you the canvas to create advertising on its side to promote your business. Some businesses might want to stay incognito if the van carries expensive items.
  • Warranty & reputation – Check for how many years of warranty you get if used in a commercial environment. Also, check online forums where others may share their experiences of driving that vehicle.
  • ANCAP Safety measures how safe your car/van will be in the event of a crash. Ratings for vans in Australia can be found here. Simply the more stars, the better.
Running costs
  • Capped servicing – Some van manufacturers will offer a fixed-price servicing plan which helps you with your budgeting.
  • Running costs – Be realistic on just how much it will cost you to keep your van on the road and use this cost in your business planning to understand costs vs revenue.
  • Repairability –  Chances are, as a commercial vehicle, your van will do many more kilometres than a car. This, unfortunately, increases your chances of having an accident. How easy is it to get replacement panels, and at what cost? Because of the nature of this being a commercial vehicle, it is likely the interior fittings will be designed to take some punishment.
  • Insurance will differ by make and the driver’s age and driving record. Vans generally will do more kilometres, so more likely to be in an accident and will attract higher premiums.

HOW do I buy a van?

What is your budget? Just like cars, there are dealers for both new and 2nd hand. You can, of course, buy privately.

Car dealers might offer drive-away deals and special financing deals to encourage you to purchase. Look out for bonuses like roadside assistance or scheduled servicing thrown in.

Check the latest rules as you might be eligible for an instant asset write-off from the ATO.
Car dealers might also offer fleet deals or a special price for ABN holders.  The GST on your vehicle may also be claimable

Note: Registration is generally more expensive for a business vehicle but is also claimable as an expense.

HINT – Buying a van

Before you rush out to buy a van, there are a few further things you need to know. 

Vans are built to a price, and that normally means cheap. Although some vans come with a 5-star safety rating, some do not, and due to maximising cargo space, might be very unsafe in a head-on collision. Please consider what your personal safety is worth. In Australia, vans were not required to have stability control (reduces the chance of rollover in a poor traction situation) until November 2017, so consider this when buying 2nd hand.

Vans are not cars. Thus, comfort, aesthetics, and multimedia will not be of the same standard. A van is designed to carry weight, and as such, the suspension will be hard and unforgiving in corners. When the van is empty, it leads to poor rear braking and front heavy handling. Drivers often sit ahead of the front tires, increasing the risk of cutting a corner early. Rear and side vision is restricted. Engine noise will be greater if the engine is below the driver’s seat.  

A great guide for buying 2nd hand vans can be found here

SUMMARY – Which Van

Which small van or which large van is the one that meets your business needs best?

If you own a delivery van, every friend and family member will want your help on the weekend.

That aside, it is a great representation of your business from both functionality and advertising.

Freight solution to customers

Posted on by
1

Sending a parcel to someone seems like such a simple thing.  You pop an item in a bag and you take it to the post office and you have a happy customer when it arrives. If you are looking for the right freight solution then this guide will explain what you need to know and what options are available for you to facilitate the shipping of your goods.

Logistics (or Shipping) is the commercial activity of transporting goods to customers. It is also the detailed organisation and implementation of a complex operation.

WHY do I need to deliver my goods?

If you have goods to supply you can have a customer pick-up or have it delivered.  You want to increase your customer base to your immediate area, offer greater convenience or simply you do not want to offer a retail sale in a store you will need to offer delivery options.  If you want to deliver you will need to select a freight solution.

WHAT do I need to know about shipping?

Let us make the assumption that you are not after a courier and that over a year you will have the need to deliver many parcels. 

Your choices are:
  1. Deliver them yourself or by an employee
    1. If local could be a cheaper option but ties up your or your employees time.
  2. Use Australia Post
    1. Economical but you might have to take parcels to a post office
  3. Use a specialised freight company
    1. Will pick up from your location
    1. Some even offer cheaper rates than Australia Post, with door-to-door delivery in a shorter time. Note however their service may not cover remote areas.

You need to package your goods. No good if they arrive broken.  Thus, special care should be taken to ensure items are packed carefully and you select the appropriate size packaging for protection and economical shipping.  A big box for a small item means you will pay to move air.

Specialised packaging might need to be considered to simplify shipping or protect the goods, like a padded bag which is fast to pack or a shipping tube for artwork. 

Time is money and in this case the faster you want something to arrive the higher the cost will be.  Thus the same day, airfreight, overnight, and even delivery at a specific time will cost you more.  Some perishable items might require fast delivery.

Dangerous and prohibited goods may be banned or require special attention when shipping. This includes if an aircraft will be used.  You should check with your freight company. The Australia Post list can be seen here. https://auspost.com.au/content/dam/auspost_corp/media/documents/dangerous-and-prohibited-goods-guide.pdf

HOW should I choose a freight solution company?

Cost– If you are starting off it is hard to estimate what your volumes will be but most freight companies including Australia Post will give you a contracted rate based on expected volumes. There will be sliding scales depending on distance so make sure you compare like for like.  Also understand the delivery class of each, one might be overnight the other 4-5 days.

Tracking – Everyone offers to track these days but not all in the same way.  Understand what tracking is available and how quickly it is updated and at what points in the process  i.e notification only when picked up and delivered vs  multiple notifications on route such as picked up, at a warehouse, in a van, and delivered.

Estimated delivery time – Not all companies use their own trucks and might rely on others.  What you care about is how long they estimate delivery.  Fast delivery equals happy customers especially if they have not paid a premium for that service.

Pick-up– Will your freight company come to you or are you required to drop everything at a depot or post office.  This is likely to have an effect on the price.

Signature on delivery – Valuable items such as currency, jewels, or important documents may require a proof of delivery in the form of a name, signature, or photo.

Insurance – Most freight companies provide a minimal amount of insurance and if items are lost in certain conditions you can make a claim.  For example, Australia Post may compensate you up to $100 for lost or damaged items. You should take note of what is covered for how much and in what circumstances.  You may also wish to understand the costs of additional insurance if needed.

Integration – If you can integrate your e-commerce store or POS solution with your freight company you can eliminate a bunch of administrative work around labeling and booking saving you time.

Phone support – What hours and support can the freight company provide to you.  If you have a lost package at  6pm on a friday can you get help finding it?

HINT

Don’t underestimate the time it takes to pack an item ready for shipping, organise the transport, and attach the labels.  It all adds up.

Freight companies charge by both volume (dimensions added up) and weight.  If you have a light bulky item you will pay based on the volume.  If you have a tiny heavy item you will be charged by the weight.

These two websites do a comparison of freight charges as a one-off and may be useful to help you decide which freight companies to contact to ask for contracted rates.
https://www.comparecouriers.com.au/
https://www.parcel2courier.com/

SUMMARY – a Freight solution is a cost and a customer service

Offering delivery of your goods can increase your customer sales.  These customers must be kept happy and have a good experience in a timely manner.  Importantly, keeping your freight solution costs lower will increase your profit.  Pick the right freight company for your needs today then review your decision at least every 2 years.

Courier options for small business

Posted on by
Reply

Lots of small businesses are not in the delivery business indeed most don’t even sell a product, but from time to time you may need to get a document or parcel across town or interstate. This guide will look at courier type options you have to get a document, a parcel or even a large machine from A to B.

A Courier company is one which delivers messages, packages and mail and is known for their speed, security, tracking service and specialisation.
A Taxi truck is a truck with a driver that can be hired.

If you are looking for an ongoing logistics solution see our guide on freight solutions– delivering to the customer.

WHY should I use a courier or taxi truck?

Your time can be better spent than doing a one-off delivery.  Although freight charges in Australia keep going up it can still be quite inexpensive to have an item delivered.

WHAT are my choices to have something delivered?

First, you need to know two things:

  1. How urgent is the delivery?  Is the delivery time critical like a blood delivery or an important contract? If it is not critical is delivery ok in a couple of days? Put very simply, the faster the service the higher the cost.
  2. How big and heavy is the item? If you want to move a shoebox-size parcel then you will have lots of easy choices but moving something the size of a car can be a little more complicated. Note that some restricted items like most liquids require specialist transport and if something is highly valuable you may wish to make special arrangements.

Your simplest choice is to visit Australia Post where you can organise a few days or next day delivery for standard items.

In most capital cities in Australia, bicycle couriers are available to deliver documents and small parcels quickly, such as zoom2u.

Your next choice is to use a courier company who will arrange pick up and delivery of items either locally or interstate. The big advantage here is they will come to your premises.

Larger items can be ferried using a taxi-truck business whom will have various sized trucks to move your freight from A to B, such as Allied Express.

Valuables can be moved by a Precious cargo specialist who should also offer full liability, like Armaguard.

International freight can also be done through Australia Post including priority envelopes otherwise talk to an international specialist like DHL.

HOW do I pick a courier company?

Australia Post has a handy postage cost and delivery calculator https://auspost.com.au/parcels-mail/calculate-postage-delivery-times/#/.  They also sell parcel post and express satchels in 10 packs to save visiting the post office every time.

To compare courier costs, you can visit these comparison sites to get instant quotes
Compare couriers
Parcel 2 courier

HINTS

Couriers charge by both volume (dimensions added up) and weight.  If you have a light bulky item you will pay based on the volume.  If you have a tiny heavy item you will be charged by the weight.

Parcel tracking is a great way to understand if the receiver has received that urgent package.

SUMMARY – delivery on time

Your time is not well spent delivering a parcel to the other side of town. Delivery costs increase the faster you want something delivered with overnight being a sweet spot between cost and time. Competition means you can get the best price simply by visiting a comparison website.