Correct transportation pricing is vital to the success of your business.

If the pandemic, the war in Ukraine and the constant increase in fuel prices have made one thing clear, it is that any change has a direct and immediate impact on the consumption, costs and margins of any company.
That is why proper cost management is vital for any business.
And the fundamental premise for this correct management is to have accurate information.
In a society in which e-commerce is gaining prominence day by day, the price of product distribution represents the biggest cost, even above other costs such as logistics or marketing.
Therefore, knowing how much it will cost us to transport our merchandise is essential, because if we do not control this cost we may find that our profit is lower than expected, zero or even incur losses.
In addition, we must bear in mind that when we talk about the total cost of transportation, we are not only referring to the cost of the shipment, since other costs are generally associated with it.
One of the main causes of frustration for businessmen is the difficulty in correctly controlling distribution and, more specifically, the cost it entails.
The lack of clarity about the variables that influence tariffs is often the main cause of this circumstance.

Variables affecting the price of freight transport

When we talk about land transportation of goods, national or international, the variables that influence its price are usually the following:

• The actual weight of the box.
• The dimensions of the product box: will determine the volume of the product and its conversion to kilograms (volumetric weight).
• Type of goods: the type of product to be transported has a direct impact on the cost.
  It is not the same to transport non-perishable products, such as clothing or furniture, as it is to transport foodstuffs or hazardous products.
  The type of load determines the performance of the vehicles.
  In the case of foodstuffs, they must be equipped with refrigerated chambers, and when hazardous material is being transported, the vehicle must have the necessary conditions to guarantee the safety of the driver, third parties and the environment.
• Oversized: when the dimensions of the box exceed predetermined maximums, surcharges are applied.
• Type of service.
  For example: it is not the same to deliver goods in 8 hours than in 48 hours.
  The urgency of the shipment determines the higher cost of a transport.
  This increase is not due to the opportunism of the transport company, but to the fact that more resources and personnel than usual have to be mobilized.
  Many times an emergency shipment is carried out in a vehicle that could have been loaded with many more products under normal circumstances.
• Destination of the shipment: prices will not be the same in a transport to the Balearic or Canary Islands than to the peninsula.
  In the case of international transports, there are usually rates per country or area, being more expensive in remote or difficult to access areas.
  The longer the distance to be covered to deliver the goods, the higher the vehicle operating costs and the longer the working hours for the personnel.
• Labor cost: the personnel involved in a transport has a decisive influence on the price of the transport.
  It is not only necessary to take into account the payment to the drivers, but also to all the people who handle the cargo, the logistics or the administrative staff who ensure the smooth running of the whole process.
• Fuel costs.
  Fuel prices not only vary almost daily in our own country, but also from country to country.
  Therefore, any variation in price will influence the cost of a trip.

We also have to take into account that the price of transportation is not reduced to the transfer to our warehouses, but we have to add the cost of transportation from our warehouse to the customer’s house and also other costs such as financial costs, warehousing or order preparation.
On the other hand, in the transportation industry there may be unforeseen costs caused by weather conditions, strikes or breakdowns, which would delay the delivery of our goods.

What tools can help us to make a correct cost calculation?

Until now, the customer would go to his logistics agency to get a detailed price for the service, bearing in mind that this can vary from day to day due to factors such as availability, fuel prices or those described above. This consultation is a clear operational inefficiency and a waste of time and therefore money. That is why these steps are being replaced by tools such as web pages with immediate price calculator, which offers an accurate and immediate price and availability. A much faster and more convenient process that translates into time savings and also allows the customer to correctly calculate the price of the service, without any error of interpretation. Knowing the correct transport price allows the businessman to optimize the final price of his product. In short, the transport and logistics industry must improve its means of connection and communication with its customers, facilitating access to all information concerning the prices of its services, quickly and reliably. In this way, not only the customers will benefit, but also the transport companies themselves, because time management in their company will be much more effective and efficient.[:][:]