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How Are Deliveries Priced?

The basic pricing structures of all courier companies have many similarities. While the actual figures that a given company uses to calculate their final rates may differ greatly, such as how a Los Angeles courier service may have vastly different rates than a New York courier service, the basic notions that they use to calculate the rates are going to be similar. In almost every case, the same sorts of things are going to cause the prices of shipping to rise. Knowing what these are can help you to better predict your shipping costs.

The first thing that is going to affect the pricing of every delivery you send is how large and how heavy your package is. Unless you happen to be shipping FTL, or on an emergency basis, your shipment is usually going to be combined with a few, and sometimes many, other shipments from other clients in the courier vehicle that is transporting it. Therefore, part of how the rate that you have to pay is going to be established is by determining how much of that vehicle is consumed by your goods compared to those other companies’ packages.

The distance that you are shipping your goods over is going to be the next figure that a courier needs when figuring out how much to charge you. In fact, in many situations the distance that a package is going to travel is actually going to have the most impact on how much your bill is actually going to cost you. That is because the figures of fuel consumed and drivers wages are impacted most by how far you are shipping, and these are the most costly elements of any given courier shipment.

The speed that you request your shipment to be made at is going to also greatly affect your price. Most courier companies will plug the basic figures such as distance and size into a formula which operates on a sliding scale based on how fast you want a package delivered. For instance, a package going from Chicago to Denver that weighed 100lbs will cost much more on a same day service when compared to an economy option.

Sometimes there are some additional fees which might increase the cost of your delivery after the basic pricing formula has been applied. This is going to include situations like those when you are shipping on a holiday, or are requesting an emergency pickup.

Harold Raynard is a consultant for local los angeles courier service businesses. As a consultant for los angeles distribution center businesses, he also consults national courier service companies.