How to set up a Rate Card for Accumulative Pricing

How to set up a Rate Card for Accumulative Pricing

When to Use Accumulative Pricing (Progressive/Tiered Rate Structure)

Accumulative pricing is used when your carrier applies different rates for different weight tiers. This means the rate per kg changes based on the total weight of the consignment.

Example: A carrier charges $0.25/kg for 0-100kg and $0.22/kg for 101+kg. For a 176kg shipment, the first 100kg is charged at $0.25/kg and the remaining 76kg at $0.22/kg. This is accumulative pricing.

How to Identify: Check your carrier's rate card. If it shows multiple rates for different weight ranges or 'weight breaks', use accumulative pricing.

Contrast with Break Pricing: If your carrier's rate card shows a single flat rate per unit with no weight breaks (e.g., always $0.22/kg regardless of volume), use break pricing instead (see 'How to set up a Rate Card for Break Pricing').

Important Note: If your carrier offers multiple account types with different rate structures (some flat, some tiered), create separate services within the same carrier account for each structure type. This allows customers to select the appropriate service based on their account agreement. For example, if a carrier offers both 'Standard' (flat rate) and 'Premium' (tiered) accounts, set up two services: one with break pricing and one with accumulative pricing.

 

Accumulative pricing involves pricing each kilo, piece, km or cubic metre in its applicable weight, volume, piece or distance break. 

For example, if we had the below rates and an 11-kilogram consignment. 

From Zone To Zone Basic (inc 5 kg) 0-5 6-10 10+
NN1 VV1 15 1.50 1.25 1.00

To compare the calculated difference between Accumulative pricing and Break pricing:

Weight 1 kg 2 kg 3 kg 4 kg 5 kg 6 kg 7 kg 8 kg 9 kg 10 kg 11 kg Total
Accumulative          1.50          1.50          1.50          1.50          1.50          1.25          1.25          1.25          1.25          1.25          1.00        14.75
Break Pricing          1.00          1.00          1.00          1.00          1.00          1.00          1.00          1.00          1.00          1.00          1.00        11.00

As can be seen with Accumulative pricing each weight figure is priced as per the break it sits in, and Break rates are priced by finding the break (based on the weight, distance, volume or number of items) and calculating the whole figure based on the price in that break.

Accumulative pricing will need to be utilised when your rate card prices like any of the examples below. The example rate card import file will be shown after the standard Carrier, Account, Service, From Zone, To Zone, Reciprocal and Cubic Conversion fields have been removed.

To understand how to fill these fields please read the article at this link.

Example 1: Weight included in the basic

From Zone To Zone Basic (inc 5 kg) Per Kilo
NN1 VV1 15 0.45
NN1 QQ1 15 0.65

 

Basic Minimum Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price
15 0 WEIGHT   0 5 0 WEIGHT   6   0.45
15 0 WEIGHT   0 5 0 WEIGHT   6   0.65

Example 2: Price for set weight amounts

From Zone To Zone 1kg 3kg 5kg 5kg+ (per kilo)

NN1

VV1 10 12 17 1.5
NN1 QQ1 10 15 19 1.6

 

Basic Minimum Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price
10 0 WEIGHT   0 1 0 WEIGHT   2 2 2 WEIGHT   3 3 0 WEIGHT   4 4 5 WEIGHT   5 5 0 WEIGHT   6   1.5
10 0 WEIGHT   0 1 0 WEIGHT   2 2 5 WEIGHT   3 3 0 WEIGHT   4 4 4 WEIGHT   5 5 0 WEIGHT   6   1.6

In the example above you will need to understand how the accumulative pricing works and that if you send for example 2 kilos of freight, you will be charged the full 3-kilo price - it is the 2nd kilo which actually causes the price increase and not the 3rd kilo.

Example 3: Price per Item

From Zone To Zone First Pallet/Carton 2nd Pallet/Carton 3rd Pallet / Carton +

NN1

VV1 25 20 14
NN1 QQ1 35 29 15

 

Basic Minimum Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price
0 0 PIECES PAL 1 1 25 PIECES PAL 2 2 20 PIECES PAL 3   14 PIECES CTN 1 1 25 PIECES CTN 2 2 20 PIECES CTN 3   14
0 0 PIECES PAL 1 1 35 PIECES PAL 2 2 29 PIECES PAL 3   15 PIECES CTN 1 1 35 PIECES CTN 2 2 29 PIECES CTN 3   15

In the instance above the abbreviation for the carrier item type is PAL (pallet) and CTN (carton).

Example 4: Set Price per Weight Amount

From Zone To Zone Per 25 Kilo
NN1 VV1 $10.82
NN1 QQ1 $7.65

 

Basic Minimum Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price
10.82 0 WEIGHT   0 25 0 WEIGHT   26 26 10.82 WEIGHT   27 50 0 WEIGHT   51 51 10.82 WEIGHT   52 75 0
7.65 0 WEIGHT   0 25 0 WEIGHT   26 26 7.65 WEIGHT   27 50 0 WEIGHT   51 51 7.65 WEIGHT   52 75 0

Example 5: Price per chunk - Distance

From Zone To Zone 15km 30km 50km

NN1

VV1 30 60 90
NN1 QQ1 50 120 190

 

Basic Minimum Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price Break Type Item Type Break From Break To Price
30 0 DISTANCE   0 15 0 DISTANCE   16 16 30 DISTANCE   17 30 0 DISTANCE   31 31 30 DISTANCE   32 50 0
50 0 DISTANCE   0 15 0 DISTANCE   16 16 70 DISTANCE   17 30 0 DISTANCE   31 31 70 DISTANCE   32 50 0

 

If there is any confusion on the above, or how your rate card should be put together please contact support@machship.com

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