Sick of fighting for fair fuel prices?

This week I have taken the opportunity to explore the topic of Fuel Prices, as a courier I am almost refuelling everyday. The prices of fuel has risen dramatically in the last decades with the price of unleaded petrol in 2007 available at the time for under 90p per litre now in 2011 the price has risen to around 1.33 per litre!

The dramatic rise in fuel prices in July saw the government lose almost £650m in tax revenue in the first 12 weeks of the year thanks to a drop in the amount of petrol and diesel being used by British motorists compared with the same period three years ago, according to the AA and the Guardian news paper.

With petrol prices so high I think all buyers of fuel have become sick of fighting for fair fuel prices, but as the price of fuel is so high we are seeing less consumption. So in turn is this not a good thing for the climate but a bad thing for the couriers?

Reduced emissions rates are fanatics however when it is affecting the lively hoods of businesses the balance of ethics can be restored. The rise of fuel is ultimately down to taxation, the unease in the Middle East, inflation and the rising cost of everyday commodities. With people and businesses having less money to spend on fuel and everyone cutting back, people are only making the most necessary trips and planning for efficient routes.

Even though less people have been filling up at the pumps and the environment is better for it, the price of fuel is dramatically high, as a courier this is worrying! Do we just keep passing on the cost straight to the customers or do we take the impact of the increases? Well which ever way you look at it what can we do about the rising prices and high cost of fuel?

I happened to come across the Fair Fuel UK website which is actively fighting for lower fuel prices in order to get the UK economy moving again.  This is a fanatic petition that is really starting to give the government a head ache, the petition is headed up by Quentin Willson and the Campaign is supported by the RAC, FTA and RHA and is now working in partnership with the House of Commons “all party working group” lead by Robert Halfon MP. The website states that:

‘Higher prices are destroying businesses, preventing growth, adding to inflation and affecting all our personal & working lives’

It a huge topic of discussion and as a courier I feel I need to do what ever I can to get the people in charge to listen to what we have to say. I have joined the petition that only takes 20 seconds to fill out.

Joining the petition i believe is one of the only genuine ways in which we can see businesses, people and couriers apply pressure to the governments and the oil industry. If you an angry courier, a unhappy business owner, an agitated driver, a mentally motor head you need to get involved and signed up to this petition

As courier our businesses are at stake, our profit margins are being reduced, is this ethical no, the problem is a big one in the courier services industry and previous posts have looked at ways in which we can switch to greener transportation but at the moment nothing is close to what our industry demands. So for the moment we need to fight for fair fuel to save our businesses.

You can read about the campaign by visiting http://www.fairfueluk.com/

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Can ethical thinking be applied to the courier industry?

Ethics is not just about recycling and holding hands and caring for the plant, it can and has been defined by academics as state of mind/influence.

Even the book for dummies has spread it pages to include the importance of ethics in business. Not only can ethics help you/ an industry arrive at a clearer positions and arguments on real life issues it can help you apply them too.

The book for dummies gives people who do not understand ethics example sof how to apply ethical thinking into everyday life situations:

Thinking more about ethical theory may even change your mind about issues in today’s world. Here are some ways you can apply ethics to your life:

• Become more ethical in your career. Ethical professionals are better professionals. Lawyers, engineers, doctors, accountants, and journalists must avoid conflicts of interest and be sensitive to the ethical requirements of their jobs. However, keep in mind that being ethical in your profession can lead to surprising results. Lawyers, for instance, have to defend some pretty shady characters in order to give everyone a fair defence.

The issues with ethics are something employees and employers face in the courier industry everyday. In our industry most of the time it boils down to money over ethics, doing something that should not be done (Which is not right or ethical) but doing it anyway to gain financial benefit.

There is an argument that suggests ethics should be over looked if a ‘courier’ in this instant needed to over ride ethical beliefs to continue to trade to earn a wage. The lines of ethics are blurred and it feels like no one has drawn a line for the courier industry.

If you understand ethics then you are more likely to act ethically when trading. Should the government not introduce trade ethical schemes to encourage our industry to start playing fairly?

It does feel like some of the big courier company’s trade less ethically than your average courier service. I believe this gives the impression that money is more important than ethics, larger couriers with call centres can get away with poor customer service and losing parcels. ‘Some’ larger courier can lose your parcel and not even give you an explanation, refund or apology and it is deemed acceptable.

If you are a courier what is the worst unethical thing you have seen in our industry?

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Here are the top 10 excuses for not paying your courier service on time!

‘I can’t afford to pay you until my customers pay me’

This is a difficult response to receive, having yourself asked why your invoice has not been paid. If it is to be believed, ask whether the customer can make an immediate partial payment of the total sum. As a freelance contractor, you need to establish precise timelines as to when your client will be able to pay. To this end, should you request post-dated cheques?

‘The cheque’s in the post’

This is probably the oldest line in the credit control book! As the ‘payee’, the first request you make is for the cheque number. Then ask; when it was paid; what was the precise value and whether it was sent 1st or 2nd class post? It is important to note very carefully what your customer says in the event you need to ask them to cancel and reissue a cheque. You can also gauge your client’s integrity by looking at the cheque number of any subsequent ‘replacement’ cheque, and comparing it with the one they claim was sent originally.

‘I’m not paying, there’s a dispute!’

Is there really a dispute? If there is, then the client may well have good reasons not to pay. The freelancer given this excuse needs to establish, as a matter of urgency, precisely what the query/issue is, and what needs to be done to facilitate the client making the payment. Whatever the outcome, it’s always good practice to confirm the remedy in writing for clarification purposes (and to further demonstrate that you have rectified the problem). This is one of the reasons why we recommend you call your customer 7 days after dispatch of your invoice. This can often resolve any queries before your invoice even becomes due for payment.

‘I have not received the invoice’

This is another old but overly used line to explain why the client hasn’t paid. As stated, it’s is always good practice to telephone the client 7 days after dispatch of your invoice to confirm the they have actually received it and any supporting documentation. On the phone, your official line can be that you’re calling to check that all was well with the goods/service provided. Do remember though to make a note of who you talked to, and the time and date of the conversation.

‘I returned the invoice’

Typically, the client follows this excuse, breathlessly, with ‘because ‘the order number was wrong/ not on the invoice,’ or ‘because the invoice was addressed to the wrong company name,’ or ‘because the amount was incorrect.’

As a contractor, it is imperative to ensure that your invoicing documentation is correct first time, otherwise you are giving your customer a legitimate reason to delay payment to you. If you receive purchase orders then read them and ensure you comply with their conditions of order (unless you have a written signed agreement that allows your Terms & Conditions to override them). Always ensure the order number(s) and end-client’s name are accurately quoted and the invoice is addressed to the correct company name, spelt out in full. If in any doubt, telephone the person who has given you the order to confirm the necessary details (preferably in writing).

Also, ensure that the invoice is checked before you send it to the client. Ensure it’s correctly priced, and if there is a variance in the price agreed, check that your client is happy for the reasons for the difference (- again preferably confirm this in writing, after you send the invoice).

‘The authorised signatory for the cheque is not in the office’

Either the person to administer your cheque is not in the office, or they are on holiday, off sick, or in meetings all day! Does their business now grind to a complete halt because of this individual’s absence? If you’re ‘sold’ this line, find out if there have been any pre-signed cheques that can be used to make payment to you, or if there is someone authorised to organise an electronic payment to you, assuming you can receive such a transaction. Alternatively, establish precise timeframes as to when the person will be back and ensure you contact them then.

‘The director/owner has died’

It’s rare that this reason for not paying an invoice is given, but it has been cited. Of course, business life still goes on.

That said, if the firm to suffer such a loss is a sole proprietorship then effectively the business has ceased trading. However often it may continue operating with a surviving relative “taking over the reins”. According to law, you, as a supplier, have a claim on the estate of the deceased. A tactful telephone call expressing sympathy, and querying how the business is to be continued (and by whom) may prove fruitful. In the case of a partnership suffering a death, then the partners have ‘joint and several liability’ to the debt and should pay, though a respectful wait on your part may well be appropriate. If it is a limited liability company (an ‘Ltd,’ ‘PLC,’ or ‘LLP’), then the business should continue to trade.

‘We have ceased trading/are in liquidation/receivership ‘

Too often this claim is tantamount to a ‘scam’ to avoid payment. As a freelancer, the onus is on you to quickly establish precisely how the company has ceased trading. Is the company/ business in ‘formal insolvency’? (For example, Liquidation, Receivership, Bankruptcy, IVA) If it is, you need to find out the name of the firm of insolvency practitioners who are dealing with the administration of the case. Contact them without delay and lodge a claim as soon as practicable. If you hold reservation of title or hold any intellectual rights or have any security you need to make the insolvency practitioner aware of this, again as matter of urgency.

You will also need to provide evidence that the company in liquidation, receivership or administration, has signed and accepted your terms and conditions of business. Without this, you stand little or no chance or retrieving and goods or property from the insolvency firm dealing with their affairs. If the business has merely ceased trading, you must satisfy yourself that the business has no assets in order to make a commercial decision whether or not it would be appropriate to pursue the debt through legal channels.

 ‘You will have to wait until we have paid higher priority suppliers / creditors’

This should NEVER BE ACCEPTABLE to you as a freelance contractor to explain why an invoice has not been paid. When told this by a client, it’s crucial to remember a credit manager’s oldest adage – ‘He Who Shouts Loudest Gets Paid First.’ To this end, speak with your client and explain your terms of payment and request immediate payment and pursue the monies vigorously. This reinforces our advice about ensuring from the outset that your client is aware, unequivocally, of your payments terms and that you expect to be paid on your stated due date.

‘I’m in the process of changing banks’

Not an uncommon claim in the current climate, but does their businesses again grind to a complete halt? This is doubtful and normally there are some provisions made to access funds. The contractor waiting for their invoice to be paid by such a business needs to establish exactly when this problem will be resolved. Can the client pay by credit card, or can they make a Paypal transaction? Either way, ensure you get a specific timeframe for the account switchover or for resolution of the problem, with the result being a precise date that you can expect to be paid by, after which time communicate that you will apply interest under the Late Payment Legislation.

This article was referenced from contractoruk.com 09/12/2011

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