·2 min read
A route price has three parts: what the route costs in kilometres, what it costs in time, and the surcharges. Your margin goes on top. If you know your cost price, you can quickly set a fair price for your customer and for your carrier.
Step 1: know your costs
Split your costs into three groups:
- Kilometre costs: fuel, tyres, maintenance and repairs. These rise with every kilometre driven.
- Time costs: the driver, per hour.
- Fixed costs: depreciation or lease, insurance, road tax, licences and overheads. Spread these over the hours or kilometres you drive per year.
Divide each group by the number of kilometres or hours per year, and you have a per-kilometre price and an hourly rate.
Step 2: the formula
Route price = (kilometres × per-kilometre price) + (hours × hourly rate) + surcharges + margin.
Worked example, with made-up figures: a route of 180 kilometres that takes 9 hours. At € 0.45 per kilometre and € 38 per hour, that is € 81 + € 342 = € 423. With a 10% margin the route price becomes € 465.30, plus any surcharges. Use your own cost prices: they vary widely by vehicle and type of work.
Step 3: the surcharges
- Diesel surcharge: moves with the fuel price. See calculating a diesel surcharge.
- Waiting time: agree after how many minutes waiting time is charged and at what rate.
- Extra stops, loading and unloading help or unusual hours.
- Tolls and charges, such as the German Maut.
- Night, weekend or rush work.
Per route, per stop or per hour?
For distribution with many stops, a price per stop or per route is often fairest; for long distances a per-kilometre price; for work with a lot of waiting an hourly rate. Choose the method that best fits how the costs actually arise, and use the same logic towards your carriers.
The price for your carrier
If you outsource the route, your margin is the difference between what the customer pays and what the carrier receives. Keep that margin in view per route, especially when carriers name their own price.
How Charterportaal helps
In Charterportaal you see for every route what your carrier receives and what it earns you in margin, before you assign it. Surcharges are carried through to the settlement automatically.
Frequently asked questions
How do I calculate a route price for transport?
Add the kilometres times your per-kilometre price to the hours times your hourly rate, add surcharges such as diesel surcharge, waiting time and tolls, and put your margin on top.
How do I calculate my per-kilometre price?
Add up all costs that grow with kilometres (fuel, tyres, maintenance) and divide them by the number of kilometres driven per year. Fixed costs can be spread over kilometres or hours.
Should I charge waiting time?
That is an agreement with your customer or carrier. Agree in advance after how many minutes waiting time starts and at what rate.