Startups Stack Exchange Archive

Pros & Cons of Different Package Pricing Policies for Courier Services

• posted by: lovetostrike on 2015-04-27
• tagged: business-model, shipping
• score: 1

I am starting a courier service, which for now will be ground-based and at the state level. The service will handle delivery of documents to boxes as large as two-feet-squared (2’x2’x2’).

Trying to understand how and why we should charge for courier services. For example, should we charge by the package’s dimensions, weight, or a combination of both?

I see some companies use:

• Linear Measurement. For example, airlines allow free baggage of size l+w+h <= 158cm
• Dimensional Weight. For example, USPS has flat rate boxes that used fixed dimensions and disregard the actual weight of the piece up to 70 pounds.

What are the advantages and disadvantages of these different methods?

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