SPA Pricing Education, Analytics & Decision Making Tools Webinar Series

Volume pricing and the micro carrier | Business content from American Trucker

Trucking hauling rates are volatile and ever-changing—and based on multiple influences. Some of these influences are controllable and others are not, with the majority fitting into the noncontrollable category. There are fuel prices, costs of doing business, driver pay, etc. Then there are broad market forces, competition for loads, other specific market forces such as availability of loads to the number of available trucks to haul them, and weather. All of these will impact the hauling fee you must calculate to remain profitable.

However, the one area that both infuriates and frustrates the smaller carriers is the use of volume discounting, which is a pricing strategy that crosses through  most industries. The idea is the more product or service a particular customer purchases, the lower the price they pay per unit. This works great for widgets, but it’s very difficult to implement into a freight hauling pricing strategy. Why?

Read complete article here:

Volume pricing and the micro carrier | Business content from American Trucker.