Introduction.
Setting up rate cards for the variety of pricing models can be quite a task. This article will look at one a pricing model that uses the total miles of an order as the basis for the transport charge calculation. Pricing based on distance can also be set based on country, allowing users to set specific rates for each country included in the order.
For this example, let's look at standard order distance where there are fixed rates based on set mileage tiers, up to a threshold mileage limit (eg: 500miles). Once the threshold limit is reached, a per mile rate is applied to the order instead.
Parameters:
Based on 2 mileage calculations.
A tiered rate up to a threshold rate.
A second rate after the threshold is reached which calculates per mile.
Configuring the Rate Card
Navigate to Rate & Rate Card Customers.
Click 'Create price list' this will open a new screen.
Select the Transportation Service the new price list is associated with.
Give the Price List a name, use something that will help to easily identify it.
Set a Valid from date. If no date is set, the default will be the date the list was created.
There is an option to set the price list as a default for all customers if required. Otherwise, the price list should be linked to specific customers.
To add the specific charges, click the Edit Icon (pencil) on the Transport Charge line. This will open the 'Edit Price' screen.
To create this price list, it will require 2 calculations:
Calculation 1: Fixed rates based on mileage tiers up to 500miles
Calculation 2: Per mile (or Per Kilometre) rate based on total miles on the order.
Calculation 1: Fixed rate / Tier mileage up to 500miles.
This will require a price table format so the mileage tiers can be added. The output per tier will be a fixed rate. For the price table, only 1 metric is required, which is the total order distance. Using the filter type as 'Between' will allow the user to set up the mileage tiers. Finally select the unit of measure, in this case miles:
If using Ranges, the END value is LESS THAN the actual value entered.
Example: Tier 1 above is 0 - 99miles / Tier 2 starts with 100 - 199miles, etc.
Enter the rates that apply to each mileage tier:
Click OK on the Rates page to save the table.
Click SAVE on the pricelist to save the pricelist.
Calculation 2: Per mile rate / Total order distance (500+mls)
This price calculation is based on a specific formula rather than a price table. In this calculation the system will consider the total distance on the order and then multiple this based on the rate per mile (or kilometer).
Mileage calculations can be based on 'Total Miles', or additional options. Under the AMOUNT drop down, if selecting any option other than 'Total Miles', addition fields will display:
Include a 'free amount' by using the OFFSET field. Enter the 'free' amount before the calculation begins.
'Percent' adjustment gives the option to increase / decrease by a %.
'Rounding' options are used to round out the set metric (ft / km / m / mile).
Adding Conditions
For Calculation 2, it is necessary to add a condition so the system knows when to apply the per mile rate. In this case, the per mile rate applies for orders greater than 500miles.
The final price list now includes 2 calculations: Calculation 1 which will apply a fixed rate up, based on tiered miles up to 500 miles; and Calculation 2 which will apply a per mile rate for orders with distances greater than 500miles.
Additional Distance Rate Option:
Rate per Country:
Instead of selecting the option for rate per order, select PER COUNTRY. Conditions will automatically be included, and the user selects the country. This allows rates to be set based on different countries.
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