Shipping costs have traditionally been calculated based on gross weight in kilograms or pounds. Charging solely by weight can lead to large revenue losses. Mettler Toledo's online ROI Calculator can help you discover just how much revenue can be recovered.
The calculator has been developed to help you calculate the best way to maximise your revenue potential. By answering a few quick questions about your industry, objects handled and average shipping costs, you can effectively calculate the extra revenue you could capture per day and the payback time on your investment. The calculator also enables you to identify the correct dimensioning system for your business.
Based on the average volume of items shipped per day, maximum number of parcels handled per hour, the average cost per parcel and number of operating days, the calculator evaluates the percentage you could gain. For many companies the average payback time of a dimensioning and weighing system is three to six months.
Getting Paid Properly
The underlying motivation for having the weight and dimensions of packages, parcels and pallets sent is correct invoicing. Charging solely by weight means that lightweight, low density packages become unprofitable for freight carriers. This is because of the amount of space they take up in the truck/aircraft/ship in proportion to their actual weight. To ensure correct invoicing, amounts should be calculated based on both the space the object occupies and its weight.
Adhering to Standards
The sum of cubic size divided by a dimensional factor is commonly referred to as the dimensional weight. First introduced by international air carriers in order to make efficient use of cargo space, dimensional weight pricing has become a standard in the transport industry and is used by all major carriers today. This method allows shippers to compare dimensional weight with the actual weight and use the greater of the two as billable weight. Mettler Toledo's ROI Calculator is designed to provide specific information needed to help businesses in the industry achieve their goals, adhere to industry standards and establish customer trust by correct invoicing through dimensional weight pricing. In this business every millimetre and minute counts! See what your company should really be earning, view the online calculator at: www.mt.com/dim-calculator