4 ms·
Lower their prices, without prompting. At Flexport we sell logistics services. The price of ocean freight is highly variable (less dynamic than, say, the stock
by seanlinehan 10y ago
Lower their prices, without prompting. At Flexport we sell logistics services. The price of ocean freight is highly variable (less dynamic than, say, the stock market or airline seats, but still fluctuates a ton). We make money by brokering these services. In some cases, the price of freight drops in the time between customers when contract us (and agree to a price) and the service gets executed (when we contract with the asset owner). We pass those savings on to the customer and let them know. This usually results in big joy, all around.
- BigJono 10y agoInteresting, if the price rises do you pass that on to the customer too or do you take the hit?
- seanlinehan 10y agoDepends on the situation. Our rates have expiration dates attached to them, so if the price went up before our negotiated rate expired, we will eat it. If the rates expired, we leave it to the judgment of their account manager on what to do.
- ohstopitu 10y agojust out of curiosity - the value that your customers see...is it actual cost + your fee? (hence you can collect the fee even if the actual cost reduces?)
- seanlinehan 10y agoYeah, classic brokerage biz model. We contract in bulk with asset owners and sell piecemeal.
- richardw 10y agoNice example. What do you do when the price moves against you? Swallow the difference?