subject: What Do Courier Companies Do To Calculate Shipping Prices? [print this page] The prices between two rival courier companies might be vastly different, but despite the differential they will probably use similar methods to arrive at their prices. It's safe to say that almost every messenger Chicago company uses a method for pricing their deliveries which is fairly close to that used by every one of their competitors. If you're really curious about how a specific courier prices their deliveries, if you ask them they will probably tell you, but this should give you a general idea about how they work this aspect of their business.
The first thing that they're going to think about is how far you're shipping your goods. This is one of the two most important figures in the calculation of every courier shipment. Usually this is charged on a per mile basis, except when you're working on a very small scale. For example, if you're only using a small messenger service to ship within your city, then you might only pay a flat rate as long as you stay within a certain zone.
The next thing that you're going to have to worry about is the size and weight of your shipment. This is something that almost every courier company is going to use to figure out their rates, because every courier vehicle can only fit so much volume and so much weight inside of it. They carry deliveries from as many clients at one time as they can, so the amount of space that you consume affects your rate. Again, this only changes when on a very small scale, such as when using a bicycle messenger when they might charge you a flat rate.
The next thing that you have to think about is any special requirements or difficulties that your project includes for the courier. These sorts of things are always going to drive your rates up, no matter what they are. A package which weighs more than 100lbs needs a liftgate, which would be an extra charge. A wide load would be an extra charge. Especially breakable packages would be an extra charge, and so on. The speed you want your package delivered in will also boost your rate.
The final piece to the puzzle is the taxes and fees that you'll have to pay. Taxes can differ depending on where you are located, and fees are generally based on the courier company's own rules, but you can request they disclose these to you.
by: Corey Michaels
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