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Per‑shipment vs. flat fees: when each pricing model pays off
Should your company pay per shipment or use a flat fee? We compare variable per‑shipment costs and fixed flat fees with concrete examples for Swiss SMEs and large clients.
Quick answer
In short: pay‑per‑shipment fits when volumes vary or orders are small and irregular. Flat fees pay off when volumes are high and predictable. We outline pros and cons, give example calculations for SMEs in Basel and large clients in Zurich, and list practical decision criteria.
What per‑shipment and flat fees mean
Per‑shipment pricing charges you for each pickup or delivery. Flat fees are fixed monthly or project fees that cover an agreed service level, such as a set number of tours or hours.
Pros and cons at a glance
Per‑shipment: transparent, flexible with variable volumes, no upfront commitment. Con: total cost rises linearly with volume. Flat fees: stable budgeting, lower unit cost at scale, simpler billing. Con: you may pay for unused capacity if volumes drop.
When SMEs should prefer per‑shipment
SMEs with irregular shipping often prefer per‑shipment. Example: a repair shop in Winterthur sends parts sporadically. Monthly shipments swing between 5 and 40. Per‑shipment keeps fixed costs low and fits ad‑hoc needs.
When flat fees suit large clients
Large clients with steady volume benefit from flat fees. Example: a retailer in Zurich dispatching 120 parcels daily signs a flat fee for scheduled tours. The flat fee lowers cost per parcel and simplifies operational planning.
Two sample calculations: SME vs. large client
SME example (Basel): 20 shipments/month. Per‑shipment price CHF 25 → CHF 500. Flat fee offer: CHF 450/month for up to 30 shipments. The flat fee is slightly cheaper. Large client example (Zurich): 2,500 shipments/month. Per‑shipment CHF 18 → CHF 45,000. Flat fee offer: CHF 36,000/month for scheduled tours. Here the flat fee captures scale savings. (Figures are illustrative; get tailored quotes.)
Checklist: questions to ask before deciding
1) Volume: stable or fluctuating? 2) Peaks: do you need spare capacity? 3) Predictability: fixed pickups or ad‑hoc? 4) Budget: prefer variable or fixed costs? 5) Contract length: test or commit? 6) Extras: are packaging, returns or basic insurance included?
Frequently asked questions
How do we estimate volume for a flat fee?
Review your shipping history for 6–12 months. Calculate average, median and peak volumes. Share growth plans and seasonality with the provider. A trial period with flexible terms reduces risk.
Are hybrid models possible?
Yes. Many companies use flat fees for standard runs and per‑shipment rates for ad‑hoc or express deliveries. This balances predictability and flexibility.
What contract lengths are common?
Contracts vary from month‑to‑month to yearly agreements. Short terms are useful for pilots. Longer terms often bring better rates.
How does volatility affect costs?
High volatility increases the risk of overpaying under flat fees. Per‑shipment pricing can make peaks expensive. Contracts with bandwidths, tiered pricing or buffer allowances help manage volatility.