We believe in a “no surprise” move day, and long carries are the #1 surprise that will upset customers. If you add the possibility of a long carry into your core pricing, you will already have charged the customer for this and will avoid the surprise.
Here’s the solution: Increase your Inventory Cost By Volume to accommodate an occasional long carry charge.
How to Calculate the Necessary Price Increase
Step 1: Gather your information.
You’ll need three numbers:
- Total number of jobs (over a set period)
- Total number of instances of a long carry (over that same period)
- Your Price per CF for a long carry
Let’s look at an example. Imagine that you’re a moving company that charges $0.14 per CF for a long carry and you perform 100 jobs per month with 20 instances of a long carry (both origin and destination).
Step 2: Calculate how often you encounter long carries
Instances of a long carry (20) / Number of Jobs in total (100) = Instance rate of jobs with long carry (20%)
Step 3: Calculate your price per volume increase
Normal long carry charge ($0.14) x Instance rate of jobs with long carry (20%) = Price per volume Increase ($0.03)
Add your Extra Long Carry Charge to your Price Per Volume
On your Mover Dashboard, click on the Pricing tab and scroll down to the drop-down menu that reads “Inventory”. Add your Extra Long Carry Charge to the amount that says “Cost by Volume”. For our example:
Original Cost by Volume ($0.9) + Extra Long Carry Charge ($0.03) = Total Cost By Volume ($0.93)