Freight & logistics pricing strategies

THE CHALLENGE

The company lacked an efficient price structure, and the variance in their discount process made price communication quite difficult. They were planning on expanding and needed to optimise their pricing to become less complex before they could expand.

OUR SOLUTION

We spoke to members of the sales team, conducted a market research survey and current price analysis. We also looked at price levels of competitors in certain markets to understand baseline prices in each unique market. Then, we segmented customers by volume, and developed an approach to standardise discounting, using loyalty and off-peak initiatives. To implement the new recommended pricing structure, we transitioned prices over time based on risks associated with current customers.

RESULTS

We delivered pricing tools that allowed the sales team to enter new customer details and receive recommendations on what prices should be offered while accounting for any potential discounts. Additionally, we helped the client with their initiative to divert traffic away from major ports by delivering a tool that considers resting time in the journey to incentivise customers travelling through ports with less crowding.