When your company needs a service, financial concerns are typically viewed through the lens of a budget: you have x dollars allocated for this service, so find the best service provider under x dollars. The problem is that service-based products don’t function under the same efficiency rules as, say, purchasing a static component like a forklift. You purchase an item once, but you effectively purchase a service every time you use it. That’s why your pricing model is actually just as important as the initial or “surface” price tag when working with your 3PL.
A Pricing Model Path to Success
When you choose a pricing model that works well with your workflows, forecasts, and expectations, you aren’t just saving money—you’re saving time as well. When sticker shock or a price differential disrupts your business agreements, everything needs to come to a halt for a negotiation. That means that the logistics team you hired specifically for their expertise needs to call a “time out” on productivity every time new pricing is hashed out. To put it in racing terms, enough pit stops will cost even the fastest driver their lead.
The moral of the story? Educate yourself on pricing structures, determine which are most promising for your business, and balance staying the course with scheduled periodic re-assessments—just like expected pit stops, re-assessments are essential to keeping your business goals aligned with what your 3PL service provider is offering.
Your Road Map Has Arrived
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The time to learn about the pros and cons of individual pricing structures isn’t around the negotiation table: you should know what you want before you ever pick up a pen to sign a contract. Our eBook gives you the information you need to make an informed decision, and one in the best interests of your company at every stage of growth.
In this helpful guide, you’ll learn about everything you need to know, including:
- Transaction / Unit Rate Pricing – and why it brings value to companies that rely on tight margin calculations.
- Fixed Variable Pricing – and how it mitigates high risk with a solid balance.
- Cost-Plus Pricing – and how full visibility of all expenses helps identify areas for improvement.
- Outcome-Based Pricing – and how it incentivizes performance from your shipper.
- The best way to shift pricing models – and how to do it with minimal disruption to your company.
Whether you’re just starting with your 3PL and don’t know the ins and outs of pricing structures, or you simply want a smart, comprehensive, and compact guide on hand for reference, our eBook is the perfect solution. Written to assist businesses of all sizes, industries, and demographic targets with streamlining their 3PL pricing practices, it’s a substantial step towards creating a forward-thinking budget and a stable business relationship with your 3PL.
To Sum It Up
Download our Warehousing Best Practices: 3PL Pricing Strategies eBook here to discover what so many of our clients have already: that a little knowledge can make a very big difference when it comes to the efficiency and longevity of your business, particularly where your 3PL partnerships are concerned.