In the home delivery industry, nearly 40% of the total cost to produce a meal kit is in downstream logistics, and about 70% of that is in the last mile. Not only is the last mile costly, it is critical to ensuring an on-time delivery with great service at a cost that won’t break the bank.
So how do you find the right dock-to-door partner when factors such as base rates, DIM (Dimensional Weight), residential surcharges, and fuel charges leave your head spinning? Pricing models among major players aren’t comparable, and costs sometimes fluctuate weekly due to surcharges with little explanation, nearly leveraging the lack of customer information to push rates higher…making your bill each month a confusing “surprise.”
It’s clear customers don’t have the information they need to select the most cost-effective and time-efficient method of delivery. Luckily, Home Direct Express is here to break it down. In the article “The Big Five Surcharges,” Move Method addresses some main surcharges that significantly affect shipping costs.
One of the surcharges is the relatively new dimensional weight pricing. This pricing technique is the estimated weight of a parcel, calculated from the length, width and height of a package. There is skepticism among some on its accuracy. The second is fuel surcharges. Nearly all carriers add a fuel charge on top of the negotiated rate. Fuel charges are constantly changing variables; for example FedEx Express typically adjusts its fuel surcharge weekly, making it hard to calculate or anticipate.
The third surcharge is the residential delivery surcharge, defined by UPS: “(a) residential delivery is one made to a home, including a business operating out of a home. For each residential delivery, an additional charge per shipment applies.” For each home delivery, an extra cost is added to the shipment. The fourth factor is the delivery area surcharge (DAS), a “package delivered to a residential rural area, residential super rural area, commercial rural area, or commercial super rural area,” says Move Method.This charge doesn’t replace the residential delivery surcharge; it’s another cost on top of it.
The fifth surcharge is known as delivery area surcharge extended (DAS-E) cost. This charge is added for deliveries to very rural, less populated or accessible areas, which means “higher operating costs” for a longer distance.
Other costs include base and fuel surcharges, which Home Direct compares across major transportation companies here.
You’re probably wondering why a home delivery company is writing about costs that greatly affect their customers. The fact is we don’t charge for most of these surcharges and it’s important for customers to understand what they’re paying for. We “cut the calories” with rates unheard of in the industry. We don’t charge DIM, fuel, delivery or residential charges. Measuring packages of the same weight, Home Direct customers save 48% when compared to USPS prices, 43% when compared to UPS and 42% when compared to FedEx.
Home Direct’s seasoned home delivery experts are determined to lower your transportation costs by up to 50% because they know hidden costs are the last thing you need to worry about. They leverage a proven delivery model that negates surcharges, and most importantly – you won’t find any surprises in Home Direct’s quoted rates.
The industry is fast moving and as you consider your bottom line, look for the partner who can help you trim unneeded expenditures. Home Direct provides pricing, operational support and customer satisfaction that will exceed expectations every time.
If you’re interested in learning more about Home Direct’s transportation solutions, please contact us here.