How Shipping Charges are Usually Calculated for Various Kinds of Freight

When you have a company to run, you need to make some really tough decisions. And sometimes, there are some questions that have no correct answer. Fixing a definite rate for the shipping services provided by your company is one such thing. While your rates need to be competitive and better than your competitors, at the same time, you cannot fix rates that would bring in a loss for your company.

Toeing the line – why should you have a shipping charge that makes your clients happy

Recent surveys have shown how customers believe that the charges levied on the shipping services are in fact higher than the cost incurred by shipping companies, and there is a widespread feeling of resentment and unhappiness. And as all business men know, an unhappy customer is no happy news for the company.

Purchases and shipment orders have been cancelled whenever the client has believed that he was being given a higher rate than what was correct. This is why having a rate mechanism for your shipping service that is transparent and seems reasonable to your clients is a good idea. There are two ways in which you can fix the shipping rates:

Calculated shipping rates

Flat out shipping rates

How you make profit on shipping depends on which of these above strategies you use and which works better for the kind of shipments your company makes on a regular basis. You also need to be reasonable with your clients while trying to balance your gains and losses. A good way to lure customers is to offer free shipping on small purchases that are to be sent over a small distance.