Home news delivery can be a profitable, standalone part of your business – if you set the right price for offering the service.

The wages and expenses paid to delivery staff each week are the most obvious and usually the biggest part of HND costs, but identifying the “hidden costs” so that all relevant expenses are covered in the customer charge is key to ensuring that a delivery service is profitable.

The list of indirect costs and overheads below will not be exhaustive in some cases, and some items will need to be estimated, based on previous or forecast figures.

For this reason these indirect costs need to be monitored carefully and checked regularly.

All direct and indirect costs, plus an amount for profit, should then be compared to overall delivery charge income.

Direct costs

  • Wages, including National Insurance where applicable, for deliverypersonnel, markers-up and other staff employed for HND operations.
  • Car, van or cycle expenses paid to HND staff.

Indirect costs and overheads

  • Equipment: trolleys, news bags, hi-viz safety jackets etc
  • Business vehicles used for HND: leasing charges/depreciation, maintenance, road tax, insurance, fuel etc
  • Administration: computer leasing charges/ depreciation, hardware and software maintenance contracts, stationery, HND accounting costs, bank charges etc
  • Publicising and promoting the HND service: local advertising, canvassing expenses etc
  • Premises costs where applicable – for example, if a separate building is used for making up rounds.