What should I ask about a courier firm’s fuel and maintenance costs per route?

Begin by asking how the numbers are recorded. Fuel cards, receipts, mileage logs and shop invoices can all be matched to routes if the firm is disciplined. If the seller offers an estimate only, ask to see the raw records behind it and how they were assigned.

Separate costs that move with distance from those that do not. Fuel and tires rise as the van drives more, while insurance and some repairs stay put. A route that looks costly may simply carry a fixed cost, and your accountant can help you sort the two. Ask, too, whether the figures include the driver’s time and the van’s wear in a way that matches how the books are kept. Mixed methods can make one route look better than another for no real reason.

Ask what has changed lately. Has a route been extended, a vehicle swapped or a driver changed? Costs can shift for ordinary reasons, but you should know which. Ask also how fuel price changes are handled with customers, whether through surcharges or fixed rates. Finally, look at deferred maintenance. Costs that look low because repairs were put off will come back. Ask a mechanic what the fleet needs and add that to your picture of each route.

Key takeaways

• Ask whether costs are tracked by route and see the raw records.
• Separate costs that rise with distance from those that stay fixed.
• Check for deferred maintenance that makes current costs look low.