Pricing Terms Beginner

Rate Card

Also known as: Shipping Rate Card, Carrier Rate Card, Pricing Matrix

Definition

A rate card is a carrier’s official pricing document that specifies shipping costs based on various factors like weight, dimensions, zones, and service levels. It’s the foundation for calculating what you’ll pay to ship packages.

Rate Card Components

Element Description
Weight tiers Rates increase as weight increases
Zones Distance-based pricing (origin to destination)
Service levels Ground, Express, Overnight, etc.
Base rates Starting price before surcharges
Surcharges Additional fees (fuel, residential, etc.)

How Rate Cards Work

  1. Determine package weight (actual or DIM)
  2. Identify shipping zone based on origin/destination
  3. Find intersection of weight and zone on rate card
  4. Add applicable surcharges
  5. Result is your shipping cost

Sample Rate Card Structure

Weight Zone 1-2 Zone 3 Zone 4 Zone 5+
1 lb $8.50 $9.25 $10.50 $12.00
2 lb $9.00 $10.00 $11.50 $13.50
3 lb $10.50 $11.50 $13.00 $15.50

Published vs. Negotiated Rates

Published Rates

  • Standard pricing available to all shippers
  • Listed on carrier websites
  • Highest prices (retail rates)

Negotiated Rates

  • Custom discounts based on volume
  • Requires carrier agreement/contract
  • Can be 20-50%+ below published rates

Where to Find Rate Cards

  • Carrier websites (published rates)
  • Carrier account portals
  • Shipping software platforms
  • Account representatives

Rate Card Negotiation Tips

  • Know your shipping profile (volume, weight, zones)
  • Get competing quotes from multiple carriers
  • Negotiate specific surcharges, not just base rates
  • Review annually as volume changes
  • Consider total cost, not just line-item rates
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