2–3 minutes

to read

Rethink Your Pricing Strategy for Accessorial Services

Accessorial charges are often an afterthought. These additional fees, from detention time to liftgate services, can quickly add up, impacting both carriers and shippers. The challenge? Many fail to deploy a strategic pricing model that ensures they are compensated fairly while remaining competitive.

At Chronos Performance, we believe that pricing should be deliberate, data-driven, and dynamic. Pricing is designed to reflect value, innovation, and experience while accessorials should be priced to maximize efficiency, reduce friction, and drive profitability. Here’s how to rethink your strategy.

Clarity Wins: Define and Standardize

No one likes surprise charges. The more transparent your accessorial pricing, the better your customer relationships. Clearly define each accessorial charge, set expectations upfront, and ensure your clients understand the why behind the cost. Standardization builds trust.

Use technology to integrate accessorial pricing directly into rate quotes and invoices. Automation eliminates ambiguity, streamlines billing, and ensures you capture every dollar earned.

Data is Your Competitive Edge

Leverage historical data to assess trends in detention time, layovers, or lumper fees. Identify patterns and price accordingly.

Actionable Insight: Track the frequency of accessorials and adjust rates dynamically based on demand. If 80% of your customers require liftgate services, should it still be an add-on or part of the base rate?

Value-Based Pricing: Charge for Impact, Not Just Service

Customers pay for experience, efficiency, and innovation. Similarly, your pricing should reflect the value of the service provided, not just the action performed.

Example: If your layover charge ensures an on-time delivery, that’s not an inconvenience fee, it’s a premium service guaranteeing supply chain continuity. Frame your pricing around the impact, not just the input.

Dynamic Pricing for a Dynamic Market

Static pricing models are outdated. Your accessorial fees should flex based on market conditions, demand surges, and operational constraints. Much like surge pricing in rideshare services, a dynamic model ensures your profitability aligns with real-world fluctuations. Consider implementing tiered pricing based on volume, peak hours, or specific routes. If a shipper frequently requires special handling, offer subscription-based or bundled pricing to create a win-win scenario.

Leverage Technology to Automate and Optimize

Digital tools and AI-powered analytics can optimize accessorial pricing, ensuring you capture revenue without friction. Automate invoicing, track trends, and forecast demand to stay ahead of the curve. If you’re still managing accessorials manually, it’s time to embrace a tech-first approach. Automate. Analyze. Adjust. The right system transforms accessorial pricing from an afterthought to a profit driver.

Conclusion: Take Control of Your Pricing Strategy

A well-defined accessorial pricing strategy isn’t just about covering costs. it’s positions your business as a leader in the freight industry. At Chronos Performance, we help carriers leverage data, automation, and strategic thinking to make pricing a strength, not a struggle.

Leave a comment

Contact Us

Go back

Your message has been sent

Warning
Warning
Warning
Warning.

Designed for Leaders. Built for Growth.

Call us

(312) 526-6477

email

support@chronosperformance.com

hours

Monday To Friday

08:00 To 5:00 PM

Follow us!