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Delivery Run Estimator

As a service to our Newsagency Sellers, if you ask yourself the below questions, then insert the answers in this downloadable spreadsheet, you will able to derive a very quick estimate of whether your delivery run breaks even, makes a profit or makes a loss.

From this, you can make a more informed judgement to the potential impact of News Ltd’s T2020, or deciding to discontinue your delivery services..

This is a BALLPARK only process. (Legal Disclaimer) We do not accept any responsibility or liability on how this information is used, compiled, sourced or calculated whatsoever.

The News Ltd announced, then receinded, that territories will be 10,000 papers a day, clearly indicates that whether you tender for a new area, or let go of your run, your existing run as part of your P&L will not be the same going forward. Whilst the T2020 decision was recinded in March 2013, the process lead to many analysing if they would continue their delivery services regardless of T2020.
As businesses are sold on their maintainable earnings, you need to identify what your run presently ads or detracts from your business. Bear in mind that if you substancially change the make-up of your business (ie: discontinuing your run), for sale purposes, you will need at least a further year of trading performance after that termination, to provide clarity to a buyer of the “maintainable” income; as often, discontinuing the run can affect in-shop retail sales also.
Answer the following questions, and then input the answers into the this downloadable spreadsheet in the same sequence to review results.
The spreadsheet is open source so you can change anything, but input into the BLUE fields will give you the simple answer.
Average # of papers delivered/thrown daily Monday to Friday –
Average # of papers delivered Saturdays –
Average # of papers delivered Sundays –
Average weekly billing to sub-agents – $
Estimate of direct credits weekly from any direct accounts – (eg coles woolworths 7/11) – $
Delivery Fees charged annually (if known) – $
Annual EX-GST cost of :-
External Wages or Contractor payments inc super – $
Wrapping Consumables, plastic, string, strapping etc – $
Wrapping Machine Maintenance – $
Separate Rent for Shed (if applicable) – $
Run Vehicle leasing – $
Run Vehicle fuel – $
Run Vehicle rego – $
Run Vehicle insurance – $
Run Vehicle repairs & maintenance – $
Accounts postage & envelopes – $
Other costs (eg printing costs for run sheets) -$
Owners Time – Average time spent per week in hours or potion of an hour
Performing the run or wrapping –   hrs
Taking Customer Calls regards the run –
Making delivery adjustments stops starts –
Preparing information for run sheets –
Making wages/contractor payments –
Processing sub-agents returns –
Personal/owners time spent on other run support aspects –
Customer accounts preparation & mailout –
Banking – transcribing payments by cheque for deposit etc –
From the above, you should be able to come up with a reasonable estimate of what your run adds or detracts from your existing business.
For a more forensic analysis, contact the QNF for their spreadsheet model that reviews much greater breakdown.