Practical Rate Configuration Examples

🏪 Case 1: Local Online Store

Situation

“My Online Store” sells products from Madrid to all of Spain. They need a simple but effective rate system.

Configured Zones

Services and Rates

Standard Service (3-5 days)

Express Service (24 hours)

Order Example

Customer in Barcelona buys 3kg of products

Options shown:

1. Standard: €7 + (3kg × €1.5) = €11.50 (3-5 days)
2. Express: €15 + (3kg × €2) = €21 (24 hours)

🏭 Case 2: Industrial B2B Distributor

Situation

“Industrial Supply Co.” ships heavy materials between businesses. They need rates by volume and weight.

Configured Zones

Calculation Method: Volumetric Weight

Configuration:

• Volumetric factor: 3000 (heavy ground transport)
• Always charges the greater of real and volumetric weight

Weight-Based Rate Table

Calculation Example

Shipment: 80kg box, dimensions 120×80×60cm

1. Real weight: 80kg
2. Volumetric weight: (120×80×60) ÷ 3000 = 192kg
3. Charged by: 192kg (the greater)
4. Applicable range: 100-500kg
5. Destination: REGIONAL
6. Final price: €120

🍕 Case 3: Local Courier Service

Situation

“QuickMessenger” offers local deliveries with different services. They need rates by distance.

Distance-Based Zones

Available Services

Standard Service

Express Service (2-hour delivery)

Quote Example

Office document shipment to a customer 7km away

• Zone detected: ZONE-2
• Standard Service: €5.00
• Express Service: €10.00

📚 Case 4: E-commerce Company

Situation

“YourStore.com” ships products nationwide from its central warehouse. They need rates differentiated by service type.

Zone Structure

Origin: Central Warehouse (single location)

Destinations:

• LOCAL (same city)
• PROVINCIAL (same province)
• REGIONAL (same region)
• NATIONAL (rest of the country)
• ISLANDS (Balearic and Canary Islands)

Rates by Service and Zone

Economy Service (5-7 days)

Standard Service (2-3 days)

Weight Configuration

• Minimum billable weight: 1 kg

Order Example

Customer in Seville buys a 2.3kg product

1. Route: WAREHOUSE → NATIONAL
2. Billable weight: 2.3kg (above the 1kg minimum)
3. Economy: €6 + (2.3kg × €1.25) = €8.88
4. Standard: €12 + (2.3kg × €2) = €16.60

🏥 Case 5: Specialized Parcel Service

Situation

“SpecialShipments” handles products that need special care (fragile, valuable, temperature-controlled).

Service Types

Rate Configuration

Standard Service

Special Care Service

Priority Service

Volumetric Weight Configuration

• Volumetric factor: 4000 (for priority services)
• Charges the greater of: real or volumetric weight

Quote Example

Fragile electronic equipment shipment, 3kg, 40×30×20cm

1. Real weight: 3kg
2. Volumetric weight: (40×30×20) ÷ 4000 = 6kg
3. Billable weight: 6kg (the greater)
4. Standard Service: €18 (5-10kg rate)
5. Care Service: €30 (5-10kg rate)
6. Priority Service: €30 + (1kg × €4) = €34

🎯 Case 6: Configuration with Multiple Calculation Methods

Situation

“FullLogistics” needs different calculation methods depending on the shipment type.

Configuration by Product Type

Documents (Flat Rate)

General Parcels (By Weight)

Bulky Shipments (Volumetric Weight)

How they combine in practice

The calculation method is fixed per rate: the system doesn’t change it based on the package. What it does do is try the rates in priority order and stick with the first one whose limits accept the shipment.

That’s how “FullLogistics” gets the effect it’s after: a cheap flat rate with strict limits at priority 1, and behind it a by-weight or by-volume rate with no limits at priority 2, which picks up everything that doesn’t fit the first one.

Example of how each package is resolved:

1. Document envelope (200g, 25×15×2cm)

   • Rate applied: the priority-1 flat rate (the envelope fits its limits)
   • Price: €5 (Standard) or €10 (Express)

2. Normal box (5kg, 30×20×15cm)

   • Rate applied: the by-weight one (the flat rate was ruled out by limits)
   • Volumetric weight: (30×20×15) ÷ 5000 = 1.8kg
   • Charged by real weight: 5kg
   • Standard price: €6 + (4kg × €2) = €14

3. Large light box (2kg, 60×50×40cm)

   • Rate applied: the by-volume one (the flat rate was ruled out by size)
   • Volumetric weight: (60×50×40) ÷ 5000 = 24kg
   • Charged by volumetric weight: 24kg
   • Standard price: 24kg × €2.5 = €60

💡 Lessons Learned

✅ Best Practices Observed

1. Initial simplicity: Start with few zones and expand
2. Transparency: Always show the price breakdown
3. Flexibility: Allow exceptions for special cases
4. Automation: Let the system calculate everything
5. Feedback: Adjust based on customer comments

❌ Common Mistakes Avoided

1. Too many zones: Makes management harder
2. Frequent changes: Confuses customers
3. No minimum weight: Losses on small shipments
4. Poorly configured promotions: Unexpected losses
5. No documentation: Nobody understands the rules

🚀 Your Turn

These examples give you ideas to:

1. Identify a similar business model to yours
2. Adapt the structure to your needs
3. Avoid common mistakes
4. Implement best practices

Next Steps

1. Define your zones based on these examples
2. Choose your pricing strategy
3. Configure it in the system
4. Test with real orders
5. Adjust based on results

Need help adapting these examples to your business? Contact our support team.