HOW DOES DELIEVRY SERVICE CHARGE FORM?
Every customer is interested how delivery charge forms. If you know basic forming processes you can determine the correspondence between stated value and production price.
The main factors that influence transportation charge:
FUEL – is the main cost item in a prime cost of transportation service. Depending on the type of vehicle its consumption per 1km can vary. Nowadays the main source of energy is refined products. With the scarcity of resources its price is always increasing that is why the cost of delivery bases on the probable and estimated fuel consumption. Nowadays the alternate fuel is also being developed but its price is still higher than traditional fuel.
DISTANCE is the second factor influencing the final price of delivery. It directly influences the fuel consumption that is why “bigger the distance – more fuel expenses – higher the price of delivery”. The distance also influences the time that connected with the salary of the person who drives the transport.
PHYSICAL CHARACTERISTICS OF THE CARGO: dimensions, weight, volume. These factors influence the choice of the vehicle for goods delivery that by-turn affects fuel consumption. Besides the time connected with loading and unloading and “driver” payments can occupy important part in prime cost of delivery.
ORDER URGENCY. There are various goods with different demands for transportation. For example, resources as a rule need sea or railway delivery because the delivery terms don’t affect its quality. But perishable goods need fast delivery. That is why can use air delivery for its transportation.
All factors on different scale influence the final prime cost of the delivery. Also can divide it into 2 groups: constant expenses (salary, loading\unloading) and variable (fuel). To count delivery price can use the following formula: PRICE = CONSTANT EXPENSES + TRANSPORTATIONKM EXPENSES*KM.