Pricing Software For Transport And Logistics Open Pricer
1. Pricing
Software
for
Transport &
Logistics
Smart Pricing. Higher Profit.
2. Price is the most powerful profit lever
Typical P&L Impact on profit of a 1%
improvement in…
Profit 5 Price + 20%
Variable Variable + 12 %
Costs 60 Costs
Sales +8%
Volumes
Fixed
Costs 35
Fixed +7%
Costs
Revenue %
• Price is the first decision criteria when choosing a transportation service
• Setting the right price for each transaction is challenging
Smart Pricing. Higher Profit. 2
4. 10 bad pricing practices that cost millions every year
1. Sales people cannot easily find the target and floor prices for each deal
2. Price is aligned with (or below) competition without consideration of service differentiation and
customer perceived value
3. Quotes are based on the average order/usage of the customer without consideration of its true order/
usage profile, causing up to 5% error in profitability forecast
4. No systematic workflow to enforce pricing policy and to review/approve quotes with pricing
exceptions or non standard costs
5. Negotiated tariff is not correctly implemented in the billing system resulting in customer claims,
extra work for billing staff and money left on the table
6. Customer actual orders/usage are not systematically monitored versus their commitment
7. Unprofitable customers are not identified and re-rated
8. Customers at risk due to price significantly higher than market price are not identified and no action
is taken to retain them
9. No KPIs and reporting to monitor pricing performance. Sales people do not receive incentives to sell
at target prices
10. No regular data-driven process aimed to tune pricing policy on the basis of updated costs and
market conditions
Smart Pricing. Higher Profit. 4
