July 3, 2023

Don’t Fall for Pricing Tricks

Freight carriers’ marketing teams use various tactics to encourage you to spend more money. One of the most effective methods is through their pricing strategies. Carriers understand that many consumers may need help comprehending the complexities of freight pricing and have studied ways to influence their customers’ decisions. Therefore, it’s important to be aware of these tactics and make informed choices.

In any transaction between a buyer and a seller, the price of a product or service is determined by demand and supply in a market, and economists have formulated models to explain various types of pricing psychology. For example, the higher the price, the more suppliers are likely to produce. Conversely, buyers tend to purchase more at a lower price.

Breaking down last-mile delivery costs

Did you know that deliveries are the most expensive part of shipping, accounting for about 40% of the total cost? This is because last-mile delivery is the final step of the supply chain process, and many factors can impact its overall cost.

To ensure efficient and timely delivery, a top-notch logistics process should consider the following factors:

  • Optimal route selection to avoid unnecessary stops and delays
  • Selecting the best roads to avoid traffic congestion
  • Prioritizing the order of delivery for multiple destinations
  • Considering the cost of returning to the warehouse if necessary

However, even with the best route, there may still be delays due to various factors, which can be expensive to predict.

logistics costs analyzer

Four major factors in freight pricing

Other crucial factors that can affect truck shipping rates include:

  • Delivery time
  • Destination
  • Taxes and custom rates
  • White glove service
  • Insurance

At Last Mile Logistics, we know that freight quotes can cause headaches when breaking down costs. That’s why we are here for your best convenience. Our logistics experience and, more importantly, customer service will make us your trustworthy transportation partner. No more hidden and shady numbers! Come with the pros for reliable and empathic counseling.