All Collections
Shipper
Carriers
Shipper TMS - Pricing Insights & Carrier Pay
Shipper TMS - Pricing Insights & Carrier Pay

In this article we are going to go over the Pricing Insights Tool!

Updated over a week ago

Introduction

Hello, and welcome to Super Dispatch! If this is your first time in the Help Center, then welcome! We are so glad to have you here and a part of our amazing platform! Today, we will review the Pricing Insights tool and Carrier Pay. This tool is a valuable asset to our platform and will make using Super Dispatch a breeze! Please check out the information below for more details!

Understanding Carrier Pay and the Quoting Process

Navigating the complexities of transportation costs and broker fees is crucial in the logistics industry. This article aims to demystify these elements, focusing on how carrier pay is determined, the customer quoting process, and strategies for responding to carrier bids.

What is Carrier Pay?

Carrier Pay refers to the amount a carrier will receive upon successfully delivering a vehicle. This figure is crucial from a shipper's perspective as it represents the cost of transportation. It's important to note that Carrier Pay is not a fixed amount; it varies and is often the subject of negotiations between the shipper and the carrier. Shippers utilize historical and predictive data to estimate the lowest possible pay to effectively determine Carrier Pay and ensure the vehicle is dispatched promptly to a carrier.

The Customer Quoting Process Explained

The transportation brokerage industry aims to maximize profits from the Broker Fee, which typically starts at $100 per order but can vary. The process begins when customers contact shippers (usually brokers) via phone or email to inquire about the cost of transporting their vehicle from point A to point B. The amount quoted to the customer is known as the Total Tariff.

💡 Key Insight: Carrier Pay + Broker Fee = Total Tariff

After determining the carrier pay, the shipper adds the desired broker fee to the total tariff. This final amount is what gets quoted to the customer.

Determining Carrier Pay Before Posting

Preparation for posting an order involves adjusting the Carrier Pay to an appropriate amount. Posting with a high Carrier Pay might attract many load requests and calls, potentially leading to revenue loss. Such orders are often called “anchor loads” due to their higher-than-average Carrier Pay.

Conversely, setting the Carrier Pay too low may cause the load to remain unclaimed on the Loadboard, leading to customer frustration and a potential loss of trust.

The goal is to post the order at a Carrier Pay amount close to the most recent Accepted/Delivered Orders the carrier Pays to balance attracting carriers without undervaluing the service.

How to Respond to Carrier Bids

Carriers may attempt to negotiate for a higher Carrier Pay than posted, either over the phone or through digital channels. The shipper must then decide how to respond to these requests. Some bids may be reasonable and align with average costs for the route, while others may not.

Decision-making in this context requires access to Carrier Pay Insights, enabling shippers to:

  • Accept a Carrier's request for higher pay if it aligns with market averages.

  • Decline unreasonable requests for a higher Carrier Pay.

  • Make a counter-offer to negotiate a more acceptable Carrier Pay.

Understanding these processes and employing strategic negotiation and posting techniques are essential for maintaining profitability and efficiency in the transportation and logistics industry.

Pricing Insights Tool

After examining Carrier Pay more closely and understanding its critical role in ensuring fair compensation for carriers, we're poised to dive deeper into the practicalities of leveraging this tool. We aim to equip you with the knowledge and strategies necessary for using the Pricing Insights Tool to its fullest potential, enabling you to make well-informed decisions.

The Tool

The Pricing Insights Tool is 100% free and can be accessed without logging into our website.

  1. Go to Resources and select the FREE Pricing Insights Tool to get started.


Inside of Shipper TMS

You can also access this page from inside of Shipper TMS by doing the following 👇

  1. Navigate to Shipper TMS

  2. Navigate to Pricing Insights by selecting it from the sidebar on the left.

  3. Fill out Shipping Details

    1. To start, fill in your Pickup and Delivery City or ZIP in the appropriate fields.

    2. Next, choose your trailer type—open or enclosed.

    3. Enter the vehicle’s year, make, and model.

    4. If the vehicle isn’t operable, select "Inoperable."

    5. Otherwise, hit Calculate to proceed.

Note: All fields marked required are required. If they are not entered, then the calculation will not work, and you may incur an error. If you do, please go back and make sure that all of the fields have been entered.


From here, the page on the right will display the Pricing Recommendation, Recent Moves, and loads Posted to Super Loadboard.

Conclusion​

Should you have any further questions or need additional assistance, please feel free to contact our support team at any time. You can reach us via email at [email protected] or simply click on the chat icon in the bottom right-hand corner of your screen to start a conversation with us. We're here to help and look forward to assisting you! 🚚

Did this answer your question?