Courier Services Delivery Pricing Algorithms

When your Miami courier service takes all of your information and then gives you

a total price for the shipment, you may wonder exactly how that price is calculated, and whether the algorithm used is fair. According to some of the largest courier services in Miami, there are several different charges that go into the final, total price. First is, of course, the base price. This amount is the price that they charge for deliveries within their home area. Normally, this will be within a 25 radius of their office. For a courier with multiple offices, this will be a 25 mile radius from the office that you take the delivery to. They determine this price and the area that it applies to very carefully, as the majority of their business, and probably yours, is conducted there.

Second, after the base price, is the per mile charge. This item, too, is calculated by the Miami courier service very carefully and only after extensive research, as it has such a huge impact on their profitability. This charge is based on the number of miles that they have to travel outside of the aforementioned 25 mile radius.

There are several other, smaller, charges and surcharges that go into your final price calculation as well. Often, the algorithm will take the size and weight of your package into account, and put a multiplier of the first two charge types onto it if it is over a certain limit. Others can include after hours charges, fuel surcharges, rush delivery charges etc. Not every company will have the exact same algorithm, so it makes sense to shop around for a company whose charge algorithm makes the most sense for the type of deliveries that you make most often.

All of these charges may make the algorithm that they use seem like some kind of black magic. It is not meant to be. If you have questions, or are concerned about some kind of top secret, hidden fees, you can oftentimes simply ask the Miami courier service to show you an itemized breakdown of what you are being charged. Many reputable companies will even show you the algorithm, when possible, that is used to calculate each charge. They may, in fact, have a widget on their web portal that will help you with this. A little bit of research goes a long way, and you can often quickly find a reputable carrier that is going to best meet your needs.

by: Earl Cavell

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