Business Plan for Courier Service
A courier service business can provide various messenger services to individuals and
businesses including delivery of flowers, court filings, documents and small packages.
The courier service charges by either a basic rate or by the distance from such business
clients as real estate and law offices, doctors, architects and many more.[1]
The business requires basic knowledge in bookkeeping, advertising, scheduling,
computer operations, answering service and dispatch service or cell phone call
management and proficiency in the specific tasks of operating and parking a vehicle
in difficult conditions, using global positioning system (GPS), mapping software and
maps, and managing prompt pickup and delivery.[2]
The targeted customer such as hospitals, doctor and dental offices, courts, law and
and local government offices has to be determined at the start of a courier service.
Although package delivery services are still valued, the widespread use of computers
and the Internet has largely supplanted hand-delivered documents, which are now
transferred in digital format. However, items such as blue prints and oversized
materials, securities, passports and medical specimens still demand courier delivery.[3]
Once a competitor courier service company has established itself as the low cost
provider, one’s company should concentrate in other areas where it has control and will
be able to compete in the marketplace.[4] For instance, a company which focuses on
getting as much profit as it can from a customer from the fear that it may just stop their
patronage can be countered by a company which listens to its customers, employees
and outsiders on how its business can be improved. The second company would
ultimately have more word of mouth appeal and be the subject of more referrals in the
industry than the first one.[5]
According to a study, there is a connection between service quality and differentiation
loyalty and that as the customers of a courier service become more immune to the
offerings of a competitor, the differentiation loyalty of the courier service increases.
Such immunity might arise due to the customers’ attitude, perceived switching costs
or reduced awareness of competing offers. It is shown that boosting the customers’
perceptions of service quality can increase their probable patronage in the future and
reduce switching to other brands.[6]
The Custom Courier Solutions Inc. firm in New York does plenty of last-mile deliveries
upon hiring by a third party logistics company which is the one hired by Internet
retailers.[7] Third-party companies like to deal with mid-sized firms who can provide
solutions for a specific location because their principals require information as quickly
as possible.[8]
Transporting the package or document from point A to point B accurately, safely and at
the least possible time is the core-benefits of a courier company. To create
differentiation, a small business courier must think outside this perception, because
once a unique selling proposition is determined and eventually appreciated by the
customer, no one will try to imitate it precisely due to its not being perceived as a core-
benefit.[9]
E-commerce retailers consider cost as a major factor in choosing a third party service
provider, but value adding factors like superior customer service, booking software and
tracking tools at no extra cost also count. It is thus important for the small business
courier company to perform excellently at the delivery end to maintain its good relations
with the third party company.[10]
[1] “Starting A Courier Business”, A Touch of Business.com, 2011, <http://www.atouchofbusiness.com/tips/ideas/CourierBusiness-0021.html> [accessed 26 April 2011]
[2] ibid
[3] ibid
[4] “Differentiation Strategy”, Buzzle.com, 2011, <http://www.buzzle.com/articles/differentiation-strategy.html> [accessed 26 April 2011]
[5] ibid
[6] Narelle Page and Catherine Eddy, “The Correlation between Service Quality, Satisfaction and Loyalty”,
1999, <http://smib.vuw.ac.nz:8081/www/ANZMAC1999/Site/P/Page_Eddy2.pdf> [accessed 27 April 2011]
[7] “Customer Courier Thrives on its Solid Reputation”, Democrat and Chronicle.com, 17 April 2011
<http://search.yahoo.com/search;_ylt=AnH9rr25oMtWjt3abLwusdqbvZx4;_ylc=X1MDUCMyMDIzNTM4MDc1BF9yAzIEYW8DMQRmcgN5ZnAtdC0zNzcEZnIyA3NidG4Ebl9ncHMDMARvcmlnaW4DdXMteWZwBHF1ZXJ5A3NlcnZpY2UgZGlmZmVyZW50aWF0aW9uIGluIHNtYWxsIGJ1c2luZXNzIGNvdXJpZXIgY29tcGFueQRzYW8DMQR2dGVzdGlkA1FJMDA3?vc=&fp_ip=ph&p=service+differentiation+in+small+business+courier+company&toggle=1&cop=mss&ei=UTF-8&fr=yfp-t-377> [accessed 26 April 2011]
[8] ibid
[9] “CA” Atreya, “Differentiation Strategy”, Small Business Blog from Atlantic Canada, 2010,
<http://www.atlanticcanadabusinessblog.com/index.php/2007/03/27/marketing/differentiation-strategy/>
[accessed 26 April 2011]
[10] “Parcel Delivery: Booking a Courier Service”, River Cities Courier, Inc., 26 December 2009
<http://rivercitiescourier.com/2009/12/26/parcel-delivery-booking-a-courier-service/> [accessed 26 April 2011]
Credit:ivythesis.typepad.com
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