However the sector is probably one of the most impacted by the steep increases in fuel prices in recent months – and it simply cannot bear the brunt of price increases without passing those costs on to others in the chain., a South African courier company with 25 branches and around a thousand drivers and vehicle owners across the country.
Lombard points out that very few delivery businesses operate on double digit profit margins, adding that the recent fuel price increases could be enough to break and close down a business that had been moderately successful before the recent run of increases – if they don’t pass those costs on to their clients.
“Levying a surcharge in this way means that if and when the fuel price comes down, our customers will benefit from the lowered costs too – and they will hopefully pass that benefit on to their own clients as well,” he says.