By [TrickDigi]
There is a romantic idea in small business that “owning assets” means success.
I fell for it hard. Two years ago, I looked at how much I was spending on local courier services and shipping fees, and I got angry. I thought, “Why am I paying these guys $2,000 a month? I could buy my own van for $600 a month and keep that money!”
I imagined driving around town in a shiny white van with my logo plastered on the side. Free advertising! Total control!
So, I went to the dealership and signed the papers for a commercial cargo van. I thought I was a genius who just cut my logistics costs by 70%.
Six months later, that van became the single biggest headache in my entire company.
If you are thinking about bringing your delivery “in-house” to save money, read this first. Here is the breakdown of the hidden costs that the dealership doesn’t tell you about.
The “Napkin Math” Trap
Here is the math I did in my head that convinced me to buy the van:
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Monthly Courier Spend: $2,000
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Monthly Van Payment: $600
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Gas: ~$200
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Projected Savings: $1,200 / Month!
It looked like a no-brainer. But I made a fatal error: I confused “Vehicle Cost” with “Fleet Cost.”
The Insurance Shock
The first nasty surprise came before I even drove off the lot.
I called my insurance agent to add the van to my policy.
“Oh, you can’t add this to your personal policy,” she said. “If your employee is driving it for commercial delivery, you need a Commercial Fleet Policy.”
I asked for the quote. My jaw hit the floor.
Because delivery drivers are considered “high risk,” the premium wasn’t $100 a month. It was $450 a month.
Suddenly, my projected savings were cut in half. And that was just the beginning.
The “One Is None” Problem (Downtime)
The real nightmare started three months later. It was a Tuesday, and we had a full schedule of deliveries.
At 8:30 AM, my driver called me. “The van won’t start.”
When you outsource delivery to FedEx or a local courier, if their truck breaks down, they send another truck. It is their problem.
When your truck breaks down, it is your problem.
I had to:
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Pay a towing service ($150).
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Pay for an Uber to pick up my driver.
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Rent a replacement van for the week while ours was in the shop ($500).
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Pay the mechanic for the repair ($800).
That single breakdown cost me nearly $1,500. It wiped out four months of “savings” in a single morning.
The Cost Comparison: The Real Numbers
After a year of owning the van, I sat down and calculated the actual cost of ownership vs. outsourcing.
| Expense Category | Outsourcing (Couriers) | Owning a Van (In-House) |
| Vehicle Payment/Lease | $0 | $600 |
| Commercial Insurance | $0 | $450 |
| Fuel & Oil | $0 | $300 |
| Maintenance Fund | $0 | $150 (Tires/Brakes) |
| Driver Wages (Allocation) | $0 (Included in fee) | $1,200 (Part-time) |
| Registration/Tags | $0 | $25 |
| Stress/Management Time | Low | High |
| TOTAL MONTHLY COST | ~$2,000 | ~$2,725 |
The Verdict: Bringing delivery in-house actually cost me $700 more per month than outsourcing it.
And this doesn’t even factor in Depreciation. Every mile we drove, the van lost value.
The “Liability” Factor
There was one more cost I hadn’t considered: Risk.
One afternoon, my driver backed into a parked BMW while making a delivery.
Nobody was hurt, but it was my company on the insurance claim. My rates hiked up immediately.
If the accident had been worse, my entire business could have been sued. When you outsource shipping, you outsource that liability. When you own the fleet, you own the risk.
Conclusion: Stick to Your Core Competency
I sold the van six months ago. We went back to using a mix of local couriers and 3PL (Third Party Logistics) providers.
Yes, writing that check to the courier company every month feels expensive. But I realized that I am paying for Reliability and Freedom.
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I don’t have to worry about oil changes.
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I don’t have to worry about flat tires.
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I don’t have to worry about drivers calling in sick.
Unless you are a logistics company, do not try to be a logistics company. The “savings” are an illusion. The stress is real.
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Disclaimer: I am not a fleet manager or insurance expert. Commercial auto costs vary wildly by location and driver history. Always run a full cost analysis before acquiring business assets.
