subject: How To Calculate The Price Of Shipping [print this page] Courier companies are in business to make profit. For any policy that a business passes, it must focus on profitability. Anything apart from this will not be business. Companies like Los Angeles courier service have to calculate their profit before setting any shipping charges. That is where it all starts before any other factor follows.
The next factor that determines courier companies shipping rate is the distance. The far the package has to be sent, the higher the rate of shipping. The distance is also determined by the means of transport will be used to deliver your package.
The shipping rate is also determined by the size of your package. The rate is set depending on the size and weight of the package. Some courier companies will also charge the space it will occupy their transporting van and this will definitely be added on the shipping rate.
If your package need to stored in the company warehouse either after or before delivery, the duration in which the package will be stored in the courier company warehouse will be calculated and the charges be include in the shipping rate.
The issue of taxes will also determine the shipping rate. This is determined if the package is going locally or internationally. Some countries charge taxes on some goods while others do not. This will definitely affect the shipping cost. When setting shipping rates, courier companies have an obligation to respect rules and laws of any country they are sending packages to. That is why they will have to literary pay taxes for these goods which is reality is the client paying the taxes because the tax fee is passed on to the client who will be charge on the shipping fee.
The shipping rate will also be determined by how fragile and how fast the package has to be delivered. For fragile packages or those packages that need special handling, for example those that have to be transported in a freezer or in regulated temperature, then the courier service provider will have to include the extra cost of handling these goods in the shipping charged. Likewise to how fast the package has to be delivered. This will call for the company to use a different means of transport that is fast. Such kind of special attention is charged and the cost is added onto the shipping cost.
by: Harold Raynard
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