Postal Hub podcast

Ep 349: Costing for pricing - making money when margins are tight


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André Pharand, strategic advisor to Open Pricer, and Nicolas Nemorin, Head of Customer Success Management at Open Pricer, explain how to increase the profitability of parcels by using better costing to improve pricing.

  • Postal and parcel operators not having good visibility of their costs
  • Winning the parcel pricing wars
  • The connection between costing and pricing
  • The need to validate profitability in parcels
  • Why costs and profitability is everybody’s business
  • Getting better granularity on costs
  • Case studies of a post and express carrier showing what can be achieved with improved cost models
  • De-averaging perception of costs
  • Identifying unprofitable lanes and zones
  • Making better decisions with existing customer base - including finding customers with hidden costs
  • Reshaping base prices and discount policies
  • What is holding carriers back from improving their cost models?
  • Competing strategic priorities in the parcel and parcel industry
  • How difficult is it to improve a cost model?
  • Automating cost models
  • Leveraging capacity utilisation data

 

...more
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