Pricing and Distribution Strategies
| Pricing and Distribution Strategies | SUO Mkt3010 | Dr. Darlene Jaffke | Linda Taylor | 10/13/2012 |
At this time, Taylor Trucking has established contracts with various manufacturers in the regional area. The industry standard of pricing based on miles per thousand pounds of product will continue in this company for the rates charged for shipments. The customer will also be responsible for any fuel surcharge that will be based on miles travelled. Taylor Trucking’s low overhead will be the competitive advantage for the customer. A general pricing guide is below that indicates the basic charges for shipments. Additional services such as loading, unloading, refrigeration, use of compressors and/or pumps, and hoses will add additional freight charges. Loading, unloading, or waiting for freight to be heated, will be charged at a rate of $25/hour after the first one and one half hours. A typical local shipping example is given at the bottom of this chart.
Taylor Trucking Pricing Structure. (bplans.com, n.d.). Mileage: | 0-3000 lbs. | 3001-10000 lbs. | 10001-45000 lbs. | Fuel Surcharges | Additional Service | | Single Axle | Flatbed or Box | Tri Axle Tank | Actual mileage | Compressor or pump and hoses | 10-49 | $50 | $100 | $175 | 15% | $50 | 50-100 | $100 | $175 | $350 | 15% | $50 | 101-149 | $150 | $350 | $500 | 15.5% | $50 | 150-199 | $225 | $425 | $700 | 15.5% | $50 | 200-299 | $300 | $550 | $900 | 20.0% | $50 | 300-499 | $500 | $775 | $1100 | 20.0% | $50 | 500-999 | $900 | $925 | $1350 | 20.5% | $50 | 1000 -1999 | $1000 | $1850 | $2500 | 20.5% | $50 | 2000 - 3000 | $2500 | $2900 | $4000 | 30.0% | $50 |
For example if a local customer needed freight shipped from Huntington, WV to Charleston, WV, a distance of 51.3 miles, the charge for the shipping would be $50 for 2000 pounds. If the load was not loaded within 11/2 hours but it took three hours, then an additional $25 per hour would be charged to the customer. Also what may
At this time, Taylor Trucking has established contracts with various manufacturers in the regional area. The industry standard of pricing based on miles per thousand pounds of product will continue in this company for the rates charged for shipments. The customer will also be responsible for any fuel surcharge that will be based on miles travelled. Taylor Trucking’s low overhead will be the competitive advantage for the customer. A general pricing guide is below that indicates the basic charges for shipments. Additional services such as loading, unloading, refrigeration, use of compressors and/or pumps, and hoses will add additional freight charges. Loading, unloading, or waiting for freight to be heated, will be charged at a rate of $25/hour after the first one and one half hours. A typical local shipping example is given at the bottom of this chart.
Taylor Trucking Pricing Structure. (bplans.com, n.d.). Mileage: | 0-3000 lbs. | 3001-10000 lbs. | 10001-45000 lbs. | Fuel Surcharges | Additional Service | | Single Axle | Flatbed or Box | Tri Axle Tank | Actual mileage | Compressor or pump and hoses | 10-49 | $50 | $100 | $175 | 15% | $50 | 50-100 | $100 | $175 | $350 | 15% | $50 | 101-149 | $150 | $350 | $500 | 15.5% | $50 | 150-199 | $225 | $425 | $700 | 15.5% | $50 | 200-299 | $300 | $550 | $900 | 20.0% | $50 | 300-499 | $500 | $775 | $1100 | 20.0% | $50 | 500-999 | $900 | $925 | $1350 | 20.5% | $50 | 1000 -1999 | $1000 | $1850 | $2500 | 20.5% | $50 | 2000 - 3000 | $2500 | $2900 | $4000 | 30.0% | $50 |
For example if a local customer needed freight shipped from Huntington, WV to Charleston, WV, a distance of 51.3 miles, the charge for the shipping would be $50 for 2000 pounds. If the load was not loaded within 11/2 hours but it took three hours, then an additional $25 per hour would be charged to the customer. Also what may
References: Keller, K. and Kotler, P., 2012. Marketing Management, 14th Edition. Upper Saddle River, NJ: Prentice Hall. Chart examples retrieved 11 October 2012 from http://www.bplans.com/general_freight_trucking_business_plan/strategy_and_implementation_summary_fc.php#.UHROQrRWW4w