Posted by Howard Trott on Tuesday, February 12, 2019 Under: Guest Motorcycle Articles
The pricing structure that most courier companies use to price their deliveries for their customers are fairly similar. Although the final price between what a New York and a New Mexico courier service arrive at can be very different, they both probably arrive at the price in the same way. There are certain factors which represent the costs put in by a courier company into any shipment, and these are used to help them estimate the final amount they need to charge in order to create their desired amount of profit.
The most expensive things that a courier company is going to have to pay for are their vehicles, their fuel, and their drivers. All three of these things are directly impacted by the distance that a delivery has to travel, which is why that is always going to be one of the primary elements used in determining the overall price of a courier shipment. Together with the distance, the freight class is going to form the basic rate they charge for a shipment.
The freight class is a figure which is assigned based on the size and the weight of the shipment. Essentially, this shows what type of vehicle would need to be used to transport the goods, and how much of the overall capacity of that vehicle would be filled by that shipment. Because most vehicles are shared, knowing how much of a given shipment is going to be taken up by one package allows the courier to price it correctly. The freight class can also become more expensive if there are any special requirements connected to the package, such as if it is oversized and needs special equipment to load it.
Even though that will give you enough information to see how courier companies come up with their price, it is critical that you realize that the price is often much more than this. This is because the courier company will charge a fee or a surcharge for many different things. Using a liftgate, making a weekend delivery, and more will all add fees on.
Finally, the speed that you want your package delivered will adjust all of this to the correct price. The simple rule when working with a courier company is, the faster you want something delivered, the more money it is going to cost. So, same day service on the same package will cost much more than an economy delivery.