There are many courier businesses in Singapore. Some survive for a long time and are doing pretty well. Many others are struggling to survive. It boils down to the knowledge and expertise of the individual courier businesses which determine their survival. The top management needs to be very knowledgeable and smart in decision making.
If you look at PCA Masters Singapore, it is clear that they are doing some things right. Perhaps there are some things courier businesses in Singapore can learn from them.
In my opinion, to increase the chances of the courier business beating the competition, here are some things courier businesses in Singapore needs to know.
1. Volatile demand
Demand for courier services will fluctuate from month to month. During some periods in the year such as Chinese New Year or Christmas Day, the demand for courier services bound to increase many folds. In other months, the demand is relatively low. Courier businesses need to take note of this volatile demand in services and plan their manpower well. Good manpower planning is critical to the profitability of the firm. If the courier business employs too many couriers, then the profits of the firm will take a huge hit if the demand is low for the month. If the company employs too few employees, customers’ deliveries cannot be conducted promptly and this risk a direct impact in its reputation.
2. Rainy days
Courier businesses in Singapore have their own couriers riding motorbikes. During the rainy days, the riders need to seek shelter and the jobs will be put on hold. New courier requests are temporarily stopped too. Even the van deliveries will be affected as the vans will move slower on the roads due to the rain. It is better to be safe. Business owners of courier companies need to know of these events so as to factor these in into the pricing of the courier services. The pricing of the courier services should be able to cover for these downtimes.
3. Minimum price
Developing from point 2, courier businesses should know a minimum price whereby their business will breakeven. This is important so that businesses know the minimum price they can go into, in order to attract more customers. If they charge customers below this minimum price, they are losing money, which is a bad thing for the business. Of course, price competition is not good for the industry in general. Businesses should concentrate on their unique points to stand out from the competition.