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Cost analysis: Fixed blocks vs on‑demand bookings for SMEs
Compare fixed blocks and on‑demand bookings. Includes simple cost math, a break‑even example and a decision guide for Swiss SMEs.
Quick answer
Short answer: A fixed block makes sense if your average shipping volume is stable and high enough that monthly fixed costs are offset by lower unit prices. For low or volatile volumes, on‑demand bookings usually cost less. This article gives a clear cost calculation, a practical break‑even example and a five‑step decision guide for Swiss SMEs.
Why a clear cost comparison matters
SMEs often miss the impact of volume discounts and fixed fees. Fixed blocks lower unit costs but add monthly commitment. On‑demand avoids commitments but can be costly with regular volumes. Key factors are shipment frequency, predictability and cashflow constraints.
Which costs to include
Include all direct costs: carrier price per shipment, possible surcharges (e.g. bulky items), administrative booking costs, return handling and internal labour for preparation. Also factor in indirect costs from delivery failures or delays.
Simple break‑even calculation (practical example)
Example for a Swiss SME: fixed block costs 1'200 CHF/month for 200 shipments (6 CHF each). On‑demand costs 9 CHF per shipment. Internal handling costs are 150 CHF/month. Break‑even point: shipments per month where costs match. Equation: 1'200 + 150 = 9×x + 150 → 1'200 = 9x → x ≈ 133 shipments. Conclusion: From roughly 133 shipments/month, the fixed block is cheaper.
Variables and sensitivity to watch
Check minimum contract terms, tiered pricing, overuse rules and costs for unused blocks. Seasonal peaks, urgent single shipments or project work make on‑demand attractive. Ask if unused volumes can be rolled over or credited.
Five‑step practical decision guide
1) Gather 6–12 months of shipping data. 2) Calculate average monthly shipments and variance. 3) Determine all internal and external costs per shipment. 4) Do a break‑even calculation like above. 5) Decide while weighing flexibility and cashflow. If you sit near break‑even, choose the more flexible option or negotiate tiered pricing.
Typical SME use cases in Switzerland
Fixed blocks suit regular delivery cycles: spare parts, stable e‑commerce returns, routine sample shipments or recurring B2B deliveries within Zurich, Geneva or Basel. On‑demand fits seasonal stores, project deliveries or when flexibility beats price.
Frequently asked questions
How many months of shipping data do I need?
At least 6 months. Ideally 12 months to capture seasonal patterns.
What if I don’t use the full block?
Check the contract: some providers allow rollover or credits. If not, unused slots raise your effective unit cost.
How do I account for internal labour costs?
Track time for packing, booking and admin. Multiply by an hourly rate and divide by monthly shipments to get per‑shipment internal cost.
Can I combine a fixed block and on‑demand bookings?
Yes. Many SMEs keep a base block for regular volume and use on‑demand for peaks. That balances price and flexibility.

