Build a base rate for a lane
A base rate is time and miles, priced at your cost, plus margin. Build it from the round trip, not the one-way distance.
You need
- Your cost per hour
- Round trip miles
- Typical turn time at that terminal
- Unload time at the customer
Steps
- Map the full round tripYard to terminal, terminal to customer, customer back to the terminal or depot, and home.
- Add the hoursDrive time, terminal turn time and unload time. Terminal time is usually the part people forget.
- Multiply by your cost per hourUse the number from recipe 21.
- Add your marginPick a percent and use it on every lane, so your rates stay consistent.
- Check it against what you already chargeIf the new rate is far from your other lanes of the same length, find out why.
- Save it by zoneGroup nearby ZIP codes into one zone with one rate. You will quote faster and argue less.
The numbers
Example. Use your own numbers.| Drive time, round trip | 2.0 h |
| Terminal turn time | 1.5 h |
| Live unload | 1.0 h |
| Cost per hour | $85 |
| Cost: 4.5 h × $85 | $382.50 |
| Margin, 20% | $76.50 |
| Base rate | $459 |
Watch out
One-way miles hide the empty return. Always price the round trip.
Turn times differ a lot between terminals in the same port.