How do I check a courier firm’s rush-job pricing board and driver pay rules?
Ask for the current rush price board and the written rules for how drivers are paid on those jobs. Then line up a sample of recent rush invoices against driver pay records. If the margin on urgent runs depends on a pay rule that could change, you want to know before you buy.
Start with the price board itself. Ask how it is set, who can change it, and whether big accounts get quiet exceptions. Then pull a sample of rush invoices and match each one to the driver settlement for the same run. The gap between the two is the real margin, and it should be steady rather than lumpy.
Next, read the pay rules the way a driver would. Is pay per run, per hour, or a share of the fare? Are waiting time, return trips and cancelled runs paid? Ask drivers, with the owner’s permission, whether the written rules match what lands in their accounts. Mismatches often show up as disputes, so ask to see any.
Finally, ask how the firm classifies its drivers and what happens to the rush work if the best drivers leave. Rush runs depend on a few reliable people. If the price board only works because one or two of them accept thin pay, a buyer inherits that risk. Your lawyer and accountant should review the classification and payroll side. Ask too how late fees, fuel changes and after-hours surcharges are applied, and whether customers have ever challenged them. A board that looks generous on paper can leak margin through exceptions nobody tracks.
Key takeaways
- Match a sample of rush invoices to the driver pay records for the same runs.
- Ask who can override the price board and for which customers.
- Find out how many rush runs rest on a few key drivers.
Related reading
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Succession
Financing
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 03Business Development Bank of CanadaGovernmentHow to reduce employee turnover
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