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Question: What admin commission can you charge an in-house logistics rider assuming you own a q commerce company considering you own the bike,provide health care for the rider and maintenance of the bike,provide an example
As the owner of a quick commerce company, you can charge an admin commission for your in-house logistics rider based on various factors. It is essential to consider your expenses on bike maintenance, rider's healthcare, and other operational costs while setting the commission. Example: Let's say your monthly expenses for bike maintenance, rider's healthcare, and other operational costs are as follows: 1. Bike maintenance: $50 2. Healthcare: $100 3. Other operational costs (fuel, insurance, etc.): $150 4. Rider's base salary: $1200 Total expenses: $1500 Now, if the rider generates revenue of $3000 per month through his deliveries, you can choose to charge an admin commission as a percentage or a fixed amount on each delivery to cover your costs. Percentage-based commission: If you choose to charge a 20% commission on the delivery fee, and the average fee is $5, your commission per delivery would be $1. Assuming the rider completes 600 monthly deliveries, you would collect $600 in commission, which would help cover a significant portion of your expenses. Fixed commission: Alternatively, you might choose a fixed commission per delivery, such as $0.75. With 600 deliveries per month, you would collect $450 in commission. When setting the commission, be mindful of the balance between covering your expenses and maintaining a fair compensation structure for the rider. It's crucial to provide incentives for riders to stay with your company and deliver good service. Make adjustments based on your specific situation, considering the local market and industry standards.
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