Theme

Pricing Engine ​

Dynamic pricing and billing management for both freight delivery and passenger transport services with automated invoicing and payment tracking.

Pricing Capabilities

Comprehensive pricing management:

  • Contract Pricing - Customer-specific pricing agreements
  • Dynamic Pricing - Real-time rate adjustments based on demand
  • Surge Pricing - Demand-based fare/rate optimization (ride-hailing, peak deliveries)
  • Pricing Tiers - Volume-based discounts and incentives
  • Zone-based Rates - Geographic pricing strategies
  • Distance & Time-based - Per-mile/per-minute fare calculation
  • Usage-based Billing - Pay-per-use models

Automated billing with invoice generation, payment tracking, and reconciliation.

Overview ​

The Pricing Engine provides flexible pricing strategies for both freight delivery and passenger transport operations, from simple flat rates to complex dynamic pricing with surge multipliers, distance/time-based fares, zone-based rates, and customer-specific contracts.

Who Uses Pricing? ​

Ride-Hailing Platforms

  • Per-mile/per-minute fare calculation
  • Surge pricing for peak demand
  • Zone-based multipliers
  • Rider incentives and discounts

Taxi & Transport Services

  • Metered fare management
  • Airport transfer fixed pricing
  • Waiting time charges
  • Night/holiday surcharges

Shared Mobility

  • Per-passenger pricing
  • Carpooling fare splitting
  • Dynamic route-based pricing
  • Subscription models

3PL/4PL Providers

  • Multi-client pricing management
  • Customer-specific contracts
  • Volume-based discounts
  • Custom rate cards

Last-Mile Delivery

  • Zone-based pricing
  • Time slot pricing
  • Surge pricing for peak hours
  • Dynamic route pricing

Freight Forwarders

  • LTL/FTL rate management
  • Distance-based pricing
  • Weight/dimension pricing
  • Accessorial charges

Fleet Operators

  • Hourly/daily vehicle rates
  • Mileage-based pricing
  • Service type multipliers
  • Special handling fees

Core Capabilities ​

Contract Management ​

Customer-specific pricing agreements with terms, rates, and conditions.

Key Features:

  • Annual, quarterly, monthly contracts
  • Base rates (per mile, per kg, per package)
  • Volume-based discount tiers
  • Service type multipliers (standard, express, same-day)
  • Zone-based pricing
  • Additional charges (fuel surcharge, oversized, weekend delivery)
  • Payment terms and invoicing frequency

→ Contract Management API

Pricing Templates ​

Reusable pricing models for common scenarios.

Template Types:

  • Standard delivery pricing
  • Express service pricing
  • LTL/FTL freight pricing
  • Zone-based templates
  • Time slot pricing

Key Features:

  • Predefined rate structures
  • Clone and customize templates
  • Apply templates to multiple customers
  • Version control

→ Pricing Templates API

Dynamic Pricing ​

Real-time rate adjustments based on demand, capacity, and market conditions.

Pricing Rules:

  • Surge pricing for peak hours
  • Capacity-based multipliers
  • Weather-based adjustments
  • Route congestion pricing
  • Last-minute booking premiums

Key Features:

  • Rule-based automation
  • Real-time rate calculation
  • Price optimization algorithms
  • A/B testing support

→ Dynamic Pricing API

Quote Generation ​

Calculate delivery quotes instantly based on pricing rules.

Quote Inputs:

  • Origin and destination
  • Package dimensions and weight
  • Service type (standard, express, same-day)
  • Time slot preference
  • Special handling requirements

Quote Output:

  • Base delivery cost
  • Zone multiplier
  • Service type multiplier
  • Additional charges
  • Taxes and fees
  • Total cost

→ Quote API

Invoice Management ​

Automated invoice generation and payment tracking.

Key Features:

  • Automatic invoice generation
  • Multi-currency support
  • Tax calculation
  • Payment tracking
  • Reconciliation
  • Credit notes and adjustments

Invoice Types:

  • Per-shipment invoicing
  • Consolidated monthly invoicing
  • Usage-based billing
  • Subscription billing

→ Invoice API

Usage Tracking ​

Track billable usage for accurate invoicing.

Tracked Metrics:

  • Total shipments
  • Total distance traveled
  • Total weight transported
  • Service type breakdown
  • Zone distribution
  • Additional services used

→ Usage Tracking API

Pricing Strategies ​

Zone-Based Pricing ​

Geographic pricing with distance-based zones.

Zone Configuration:

  • Local (0-25 miles) - 1.0x multiplier
  • Regional (25-100 miles) - 1.2x multiplier
  • National (100+ miles) - 1.5x multiplier

Use Cases:

  • Urban delivery with concentric zones
  • Regional freight pricing
  • Cross-country shipments

Service Type Pricing ​

Different rates for different service levels.

Service Tiers:

  • Standard (3-5 days) - Base rate
  • Express (1-2 days) - 1.5x multiplier
  • Same-Day (< 24 hours) - 2.5x multiplier

Use Cases:

  • E-commerce delivery options
  • Time-sensitive shipments
  • Premium service offerings

Volume Discounts ​

Tiered pricing based on shipment volume.

Discount Tiers:

  • 0-100 packages/month - Standard rate
  • 101-500 packages/month - 5% discount
  • 501+ packages/month - 10% discount

Use Cases:

  • High-volume customers
  • Enterprise contracts
  • Loyalty programs

Dynamic Surge Pricing ​

Real-time rate adjustments based on demand.

Surge Triggers:

  • High demand periods (holidays, weekends)
  • Low capacity availability
  • Weather conditions
  • Route congestion

Multipliers:

  • Normal capacity: 1.0x
  • Medium demand: 1.2x
  • High demand: 1.5x
  • Peak demand: 2.0x

Use Cases:

  • Peak season pricing
  • Capacity optimization
  • Revenue maximization

Weight & Dimension Pricing ​

Pricing based on package characteristics.

Pricing Factors:

  • Actual weight
  • Dimensional weight
  • Oversized handling fees
  • Special packaging requirements

Calculation:

Base cost + (weight × rate per kg) + (distance × rate per mile)
+ oversized fee (if applicable)

Use Cases ​

E-Commerce Platform Integration ​

Scenario: Online retailer offering multiple delivery options at checkout

Workflow:

  1. Customer enters delivery address
  2. System calculates zones and distances
  3. Quote API returns pricing for each service type
  4. Customer selects preferred option
  5. Price locked at checkout

Pricing Strategy:

  • Zone-based delivery pricing
  • Service type multipliers (standard, express, same-day)
  • Volume discounts for repeat customers

3PL Multi-Client Management ​

Scenario: 3PL provider managing pricing for 50+ clients

Workflow:

  1. Create pricing templates for common scenarios
  2. Customize contracts per client
  3. Apply volume-based discounts
  4. Generate monthly consolidated invoices
  5. Track usage and reconcile payments

Pricing Strategy:

  • Customer-specific contracts
  • Volume tiered pricing
  • Monthly consolidated billing

Last-Mile Delivery with Surge Pricing ​

Scenario: Urban delivery service with peak hour demand

Workflow:

  1. Monitor real-time capacity and demand
  2. Apply surge multipliers during peak hours
  3. Dynamic quotes at order creation
  4. Customers see real-time pricing
  5. Optimize revenue and capacity utilization

Pricing Strategy:

  • Time-based surge pricing
  • Zone-based base rates
  • Real-time quote generation

Key Benefits ​

Revenue Optimization ​

Dynamic Pricing:

  • Maximize revenue during peak demand
  • Optimize capacity utilization
  • Market-responsive pricing

Volume Incentives:

  • Encourage high-volume customers
  • Reward customer loyalty
  • Predictable revenue streams

Operational Efficiency ​

Automation:

  • Automated quote generation
  • Auto-invoice creation
  • Payment tracking and reconciliation
  • Usage-based billing

Accuracy:

  • Eliminate manual pricing errors
  • Consistent rate application
  • Real-time cost calculation

Customer Experience ​

Transparency:

  • Clear pricing breakdown
  • Instant quotes
  • Multiple delivery options
  • Predictable costs

Flexibility:

  • Custom pricing agreements
  • Volume discounts
  • Flexible payment terms
  • Multi-currency support

Pricing Models ​

Flat Rate Pricing ​

Simple fixed cost per delivery.

Best For:

  • Predictable routes
  • Standard package sizes
  • Local delivery zones

Distance-Based Pricing ​

Cost calculated by distance traveled.

Formula:

Base rate + (distance × rate per mile)

Best For:

  • Variable distance deliveries
  • Regional shipping
  • Freight operations

Weight-Based Pricing ​

Cost calculated by package weight.

Formula:

Base rate + (weight × rate per kg)

Best For:

  • Freight forwarding
  • LTL/FTL operations
  • Heavy cargo

Hybrid Pricing ​

Combination of multiple factors.

Formula:

Base rate 
+ (distance × rate per mile)
+ (weight × rate per kg)
+ zone multiplier
+ service type multiplier
+ additional charges

Best For:

  • Comprehensive pricing strategies
  • Enterprise contracts
  • Complex delivery networks

Integration Patterns ​

E-Commerce Platform Integration ​

Provide real-time delivery quotes at checkout with multiple service options.

→ E-Commerce Integration Guide

ERP System Integration ​

Sync pricing data with enterprise resource planning systems for unified billing.

→ ERP Integration Guide

Accounting Software Integration ​

Export invoices to QuickBooks, Xero, or other accounting platforms.

→ Accounting Integration

API Reference ​

For detailed API documentation including endpoints, schemas, and examples:

Contracts APITemplates APIQuote APIInvoices API

Next Steps ​

Pricing Setup GuideLSP OverviewComplete API Reference

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