What is the true cost to reputation retention

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5 deliveries per hour, though this depends on geography. Out of respect for the drivers, let’s hypothesize that Salyards is operating in a city that’s passed a $15 minimum wage and that he decides to employ in-house delivery persons. It would take 8.8 hours for one driver to make 22 deliveries. 8.8 hours x $15 an hour = 132.00. Salyards would be paying 20.75% for in-house delivery instead of 30% for third-party fulfillment for the same work in this dynamic.


And obviously, where the minimum wage is lower, Salyards costs for in-house delivery would be far less. On the face of it, in-house fleets look far more profitable than third parties, but here’s what my math doesn’t cover: Do in-house drivers use latvia business email list their own cars, or does the business have to make a major initial investment in a vehicle fleet? Who pays for gas/electric charging, auto maintenance, and liability insurance? How do you measure out the benefits of marketing your own brand by advertising on your company vehicles, vs.


the loss of that opportunity because third-party vehicles don’t display your logo?, and revenue when a brand loses control of the last mile of the customer experience? Is there an acceptable level of customer dissatisfaction caused by slower delivery times, lack of proper equipment, or ghosting drivers? Each business has a unique scenario, and all of them will need to find customized answers to all of these questions. Trust issues with the middleman Customer service rules the viability of local businesses, and the best ones labor over every aspect of their operations to get things just right.