What to charge.
WHAT TO BASE IT ON
Cost per kilometre, plus a margin What the market pays The value to the customer
WHY COST FIRST
Without it you cannot know whether a rate is viable.
WHAT TO ADD TO THE DIRECT COST
Overheads Return journey, if empty Waiting time expected Risk
WHY THE RETURN JOURNEY
Pricing only the loaded leg means the empty leg is unpaid.
WHAT TO ESTABLISH
Whether the rate assumes a return load.
WHAT TO CHARGE FOR SEPARATELY
Waiting beyond an agreed period Additional stops Loading and unloading assistance Failed deliveries
WHY SEPARATELY
They consume capacity and they are otherwise absorbed.
WHAT TO STATE IN ANY QUOTATION
What is included What is not What triggers additional charges Payment terms
WHAT TO AVOID
Accepting rates below cost to keep vehicles busy.
WHY
Busy vehicles losing money fail faster than idle ones.
WHAT TO CALCULATE FOR ANY JOB
Whether it covers its own cost plus a contribution.
WHAT TO DO ABOUT FUEL PRICE MOVEMENT
Include a mechanism in longer arrangements.
WHY
Fixed rates over long periods transfer all the risk to you.
WHAT TO REVIEW
Rates, whenever fuel or vehicle costs move materially.
WHAT TO TRACK
Margin by route and by customer.
WHAT THAT USUALLY REVEALS
Some customers or routes losing money.
