Thank YouDo you know how to figure out Mileage rate and fuel surcharge?
What you should do instead is follow a pricing scheme based on your own costs. Here are two very commonly used schemes:
COST PLUS
calculate all costs involved in delivery:
truck depreciation
truck labor costs (including wage and payroll)
gas
insurance
repairs
and anything else you think you'll have
find your own required rate of return on your investment in the company
total cost + required rate of return = retail level price
TARGET RETAIL PRICE
If you offer a premium service with no competitors, you can use this scheme to get what your service is truly worth.
find the maximum that your clients are willing to pay (your target price)
find your required rate of return as before
target price - required rate of return = target cost
If your true costs are higher than your target cost, you have to find a way to reduce costs while offering the same service.
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