Chariot Logistics Unique Cost Plus Pricing Model: PriceProof
The pricing model that protects shippers from market seasonality and spot rates … guaranteed.
There are many innovative ways in the RFP process that shippers can use to protect themselves from having their bids busted by paper rates and tender rejections. Single Source, Regionalized, Quarterly, and Mini Bids, all have their upsides and work very well in a lot of great supply chains. However, there is one pricing model to rule them all and that is the Cost Plus Model.
Often referred to as Dynamic Pricing, a cost plus model is a relationship-based pricing model in which no actual freight rates are contracted. Instead, there is a fixed markup that carriers charge their customers for performing transportation services. Think of it as a logistics service model where carriers tell you how much it costs them to move your loads and then they tack on a pre-negotiated amount on top to serve as the margin on the shipment. The cost plus model creates a true transportation partnership between shippers and carriers allowing for increased collaboration and an extension of a shipper’s supply chain. Chariot Logistics has a unique cost plus model called PriceProof, which guarantees market resilience and savings on your freight costs.
What is PriceProof?
The PriceProof model is a hybrid between a single source and cost plus pricing models that allows Chariot Logistics to offer volume discounts and lane guarantees for Truckload Logistics while providing a market resilient pricing platform that limits shipper exposure to freight rate seasonality. PriceProof allows shippers to focus on core competencies while we focus on your transportation needs. Shippers who use PriceProof enjoy benefits such as 100% Tender acceptance, 100% OTD, No Spot Loads, No Waterfall downtime, and increased savings through all 12 months in all freight markets.
How PriceProof Works.
It starts with trust. At the core of PriceProof’s success is 100% transparency with Chariot Logistics’ customers. We share our truck cost with you and then add our markup. It's as simple as that. You know how much we pay our carriers to move your freight. As a shipper, you might say, “What is the incentive to not pay as much as possible on my loads so you make more money.” That is where PriceProofs Benchmark protection comes in. Think of it as PriceProof insurance, where there are pre-negotiated rate thresholds that, if broken, result in disincentives to Chariot.
PriceProof only works if the lanes being serviced are being moved under a single source carrier model. This allows for a decrease in carrier competition and ultimately cost savings on freight rates. PriceProof is a true transportation partnership where the best interest of the customers is put before the bottom line fulfilling the Chariot mission of “Purpose over Profits.”
Benefits of PriceProof.
As a shipper, should you be allowed to benefit from cost savings when the markets are in your favor? The answer is absolutely! PriceProof offers you just that. With PriceProof, if the market allows us to secure capacity for less, that savings is passed back to you on a decreased freight rate rather than absorbed as carrier profit. PriceProof maximizes 12 month shipper savings through all markets. If you're tired of your freight hitting the spot market, with the PriceProof program, we guarantee 100% tender acceptance and to take it a step further 100% on-time delivery. Your dedicated Chariot Account Executive works as a true extension of your company with expertise and insight into your supply chain. This cuts down on transaction times, which allows you to focus on what drives your business while we focus on moving your freight.
Want to Learn More?
Chariot's PriceProof model is a proven pricing model that some of the nation's largest shippers have effectively employed to combat the realities of today's freight markets. If you are tired of having unreliable capacity and uncertainties in your supply chain, please email aschnitzer@chariotlog.com to learn more.