How Is Courier Pricing Established?

When you get a bill form a courier service, there are a lot of different things that go into making up that final amount

. There are calculations which are applied based on the specifics of your delivery, fees and surcharges added, the entire amount taxed, and then you come up with the price that you actually pay. Any Indianapolis courier service is going to calculate your rate in a very similar way, although the final number may be quite different. The first thing they are going to do is establish your basic rate for the shipment. They do this by first calculating your freight class.

Freight class is a description of a shipment that is based on both its size and weight, as well as any special modifiers that may make it more difficult to transport. Many people wonder why weight is a factor and not just size, and the reason is that even if there is still physical room left in a vehicle, they have legal weight maximums that they are allowed to carry; therefore the weight needs to figure into the room allowance in each vehicle. This freight class is then used with the distance to figure out the base shipping rate. The distance is sometimes not a factor if within a certain area of the delivery company at which all deliveries might be assessed the same rate.

The next charge might come with any delivery options that you chose for this shipment. This means that if you asked to have the delivery shipped any faster that the basic economy service, the price will increase accordingly. Generally, the faster you request for a delivery to be completed the more the shipment will cost, with rush service being the most expensive.

Finally, there are all the fees and surcharges that couriers have for various features associated with their business. A courier has to tell you what these fees are if you ask ahead of time, but it tough to think of everything that they might end up charging you for on a theoretical basis. Things like shipping after hours or holiday shipping are obvious, but there are also fees for things like incorrectly labeling an address, or not having a package ready for pickup. In addition, anything that makes your package more difficult to transport, such as being very heavy, oversized, or fragile, could add a surcharge. This could also be for a need for special equipment, like refrigerated units.

by: scott gallagher

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