Monday, March 7, 2011

Distance Pricing

Distance pricing takes advantage of our Google Maps integration to calculate the driving distance between pickup and delivery. You can use flexible options for base rates, minimums, and mileage charges over different ranges to achieve a price scheme to your liking.

Ranges allow you to set different rates for different legs of the journey. Say, for example, I wanted to charge a a base rate for the first 30 miles, a mileage charge from 30 to 100, and a higher mileage charge thereafter. The three sample ranges shown above of '0-30', '30-100', and '100-unlimited' would allow me to do this. Click on a range to set costs for that range.

Package/Service types allow you to customize the price very specifically. This allows you set different rates for each combination of package type and service type. Keep in mind, each of these combinations is at '0' by default, so you'll have to methodically go through every combination that you use and make sure it's filled in. If you want to change multiple service or package types at once (e.g. if all of your package types have the same minimum), hold down control and select all the package/service types that you would like.

Within each package/service combination, the price is broken down into 3 components.
1. Minimum: After the price for a certain range is calculated, Digital Waybill will check this leg of the price against the minimum. If it doesn't meet the minimum, the price for that range will be automatically bumped up to meet it.
4. Base Price: As soon as an order enters a given range, the base price is added to the order.
5. Price/Mi: The price per mile is added on to the base price within that range.

You can use all three of these components when designing your price list. Be aware that the minimum and base price are two different things. The full base price is always added as long as the order qualifies for that range. The mileage will be added second, and finally the system checks to see if it's reached the minimum. For example, in the range '0-20 mi' with 'Minimum = $15', 'Base Price = $10', and 'Price/Mi = $1', a 2 mile order would be calculated like so:

-The order is more than 0 miles, so the base price of $10 gets added right from the start.
-For the 2 miles, the system will add on an addition $2.
-Finally, the system checks the minimum. $12 doesn't qualify, so the price will be bumped up to a final price of $15.

One last, very important thing to note is that mileage ranges are cumulative, not overriding. We talked a little bit about this while explaining the new surcharge options, but weights and surcharges have an override option; distance does not. What this means is that for any given order, each leg (range) of the trip is calculated separately, and they're added together at the end. The current range will not override previous ranges. For example, if you had ranges from '0-10', '10-20', '20-30', and '30-40', a trip of 40 miles would calculate the first ten miles of the trip using the '0-10' specifications. It would then set this subtotal aside, calculate the next ten miles of the trip using the '10-20' rates, and set that total aside. After calculating each leg separately, it would add each subtotal together to get a final base price at the end. What it won't do for a 40 mile trip is take the '30-40' rates and apply them to the whole trip. This consideration is very important and may require you to make a few calculations when setting your pricing. Of course, you can always give us a call and we'll be happy to walk you through the process.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.