I coach new and growing carriers, and the patterns are the same. If you see yourself in any of these, you are not alone, and you can fix them.
1) Pricing by feeling, not by numbers.
You want to be “competitive,” so you quote what sounds fair. Feelings are not a pricing model. Your numbers must include cost per mile, cost per stop, time on task, the value of your availability, and your profit.
2) Forgetting the clock.
You price the miles and ignore the minutes. Wait time, dock time, and traffic are real costs. If you are not billing for them, you are paying for them.
3) Saying yes to everything.
Not every job is your job. If a run will break your route, crush your margin, or overload your team, walk away or charge a premium that makes the disruption worth it.
4) One flat number for every situation.
You quote the same rate for a twelve-mile routine run and a twelve-mile rush with a strict delivery window. Different service levels require different prices. Period.
5) No minimums, no fees, no policy.
A business without minimums and policies invites scope creep. You need a minimum charge, a rush fee, an after-hours fee, a weekend and holiday policy, a wait time policy, a fuel surcharge, and a clear reschedule or cancellation rule.
6) Copying what a friend charges.
What works for their market, insurance, and vehicle mix may not work for yours. Borrowing bad math keeps you stuck.
If you want more mindset on this, read my pieces “Scared Money Does Not Scale” and “3 Things That Keep You Broke in Business.” They pair well with today’s topic and will challenge the beliefs behind undercharging.
How To Confidently Raise Your Rates Without Fear
You do not need drama. You need a plan. Use this framework and update your pricing this week.
Step 1: Know your true cost.
List fixed costs, variable costs, and your time. Include fuel, insurance, maintenance, dispatch tools, labor, admin, and owner pay. Divide across projected billable miles and hours to find your break-even, then add your profit target. If you do not build profit into the quote, you will never “find” it later.
Step 2: Set your non-negotiables.
Create a one-page pricing policy that includes:
- Minimum charge per run
- Base per-mile or per-zone rate
- Per-stop fee for multi-stop work
- Rush fee, after-hours fee, weekend and holiday fee
- Fuel surcharge methodology
- Wait time billing after a grace period
- Cancellation, reschedule, and redelivery fees
Step 3: Align price with service level.
Offer tiers. For example: Standard, Priority, and Direct. Each tier has a defined delivery window and fee structure. This lets customers choose speed and pay accordingly, which protects your schedule and your margin.
Step 4: Communicate the change clearly.
Send a professional notice with an effective date. Thirty days is common, two weeks can work for smaller accounts. Explain the structure, not your feelings. More on talk tracks below.
Step 5: Lead with options, not apologies.
If a shipper pushes back, present alternatives. “We can stay at the current rate with a next day window, or we can continue your same-day window at the new rate.” You are not taking value away, you are aligning price with service.
Step 6: Protect the relationship with data.
When possible, show on-time performance, average wait time absorbed, and route disruptions you managed to keep their shipments moving. Facts reduce friction.
This approach helped many of my clients increase rates, keep their best accounts, and finally pay themselves. For more detail, read “From Gig Worker to Boss” and “How to Get Your First Courier Contract.” When your offer is clear and your numbers are right, contract conversations become easier.
Why You Do Not Need To Explain Your Price, Just Own It
Read this twice. Price is a decision, not a debate. You do not owe a line-by-line justification for your numbers. You owe clarity, consistency, and confidence.
- Clarity means your quotes and policies match your service.
- Consistency means every customer sees a structure, not a random discount.
- Confidence means you quote without fear, you pause when rushed, and you are willing to walk away from misaligned work.
When you over-explain, you signal uncertainty. When you state your rate and pause, you signal leadership. Shippers want dependable partners. They do not want someone who is guessing.
Talk Tracks You Can Use
Phone or face-to-face:
“Based on your pickup window, delivery deadline, and handling requirements, the investment is $165 plus fuel. That includes direct service and five minutes of dock time. Would you like me to book that now, or do you want the Priority option that gives you an extra hour on pickup for $205 plus fuel?”
Email rate increase notice:
“Thank you for trusting us with your deliveries. To maintain service quality and on-time performance, we are updating our pricing effective October 1. Your new structure includes a $ 25 minimum per run, $1.75 per mile, a $12 per-stop fee, a five-minute dock grace period followed by billed wait time, and a fuel surcharge indexed monthly. If you prefer a Standard delivery window instead of Direct, that option is available and reflects a lower rate. Please reply with the option that fits your needs best.”
Notice there is no apology, no long story, just options and clarity.
Pricing Details Many Couriers Forget
- Minimum viable route math. If a run takes a driver off route for forty minutes, your price must cover the disruption, not just the miles.
- Accessorials. Inside delivery, stairs, heavy items, instrument deliveries, and temperature control require fees.
- Peak pricing. High demand days, severe weather, and special events should trigger a temporary premium.
- Admin load. Onboarding, portals, compliance, billing, and dispatch communication cost real hours. Bake it in.
- Fleet mix. Cars, SUVs, and vans each have different cost and capacity profiles. Price accordingly.
For a deeper operations strategy, see “Why I Stopped Using Load Boards” and “Why Entrepreneurs Burn Out and CEOs Do Not.” Pricing well is also a burnout prevention tool. You cannot scale if you are exhausted and underpaid.
Ready To Stop Doing Too Much For Too Little
If today’s message hit home, let us fix it together. Routes to Riches: Mastering Courier Pricing gives you the templates, the math, and the words to raise rates with confidence. It is a straightforward training that has helped carriers move from guesswork to clear, profitable pricing.
And if you are looking for what is next after pricing, visit my Events page to see everything on the calendar, including Routes to Revenue for sales and contracts, Direct Routes for launching your medical courier business, and other live sessions that help you build a business that pays you well.
You bring the work ethic. I will bring the blueprint.
Your mentor & Strategic Logistics Coach,
Roslyn V
