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Lession 3 - Coggle Diagram
Lession 3
Rate Making in practice
Class rate
Exeption rate
Commodity rate
Special Rate
Pricing in Transportation Management
Factors Involved
Customers
Government
Channel Members
Competition
Major strategic pricing decision
Set prices on a new service
Modify prices over time
Initiate and respond to price changes
Carrier Pricing Objective
Corporate objectives
Competitive strategies
Stage of product or service life cycle
Market
Most common mistakes in carrier pricing
Cost-of-Service Pricing Vs Value-of-Service Pricing
Difference
Cost-of-Service Pricing:
basing prices on marginal
cost or basing prices on average cost
Value-of-Service Pricing:
Pricing according to the value of the product
High-prices for movement of high-valued products and vice versa
Why? More risks -> more expensive equipment needed
Price discrimination
need to separate customer
By place
By individual person/ customer (or customer loyalty)
By time
On route
By Commodity/service
no transfer of sales between the submarkets
must possess some degree of monopoly power
Price Floor and Price Ceiling
Calculation example
Headhaul and backhaul movement example
Charge and Surcharges