Different pricing models of courier services

In my previous post “What you should expect from courier services in Singapore“, I said that different pricing models exist for courier services in Singapore. There are three pricing models that I have shared – distance-based pricing model, weight-based pricing model, and region-based pricing model. I will discuss these different pricing models of Singapore courier services in detail in this post.

1. Distance-based pricing model
Distance is the key fundamental value in the distance-based pricing model. The delivery fee will be computed based on the total distance traveled from the collection point to the delivery point. It does not include the distance traveled from the location the courier was at when he received the delivery order to the collection point. Sometimes, courier companies using this pricing model may include peak hours surcharge similar to the way the taxi transportation fee is charged.

2. Weight-based pricing model
Weight is the key fundamental value in the weight-based pricing model. Courier companies that use this pricing model mainly specialized in delivering heavy and bulky goods such as refrigerator and television sets. The delivery fee will be computed based on the total weight of the items per delivery location. As the courier companies that use this pricing model mainly uses lorries, they will not impose a cap on the maximum weight that items can be to a single location. From their point of view, they will also want the weight to be as high as possible so that they will be able to charge a higher delivery fee.

3. Region-based pricing model
The collection location and delivery location are the key fundamental values in the region-based pricing model. Locations that are at the outskirts of Singapore will be charged at a higher price than locations that are nearer to the central of Singapore. Courier companies such as PCA Masters that use this pricing model concentrate their couriers around the central region of Singapore. They reason that the accessibility of the regions at the outskirt is lower than that of the central regions of Singapore. Hence, more time will be incurred for subsequent traveling to the next locations. This is why premiums are placed on outskirt locations.

Now that you understand the various pricing models of the courier services in Singapore, carefully choose the one which will be cheaper for you in the long run according to your delivery needs.