Price-making for the Third Party Logistics Service

The pricing mode of the third party logistics (TPL) enterprises is a most important factor in competition in a way. A good price-making can not only help the logistics corporations reduce the costs, gain profits and win the customers' faith, but also consolidate or expand the market share and get the competition advantage. With the analysis of four factors: cost, pricing objective, demand and competition, a basic model of price-making for logistics service is constructed based on logistics service cost. Then two concepts level of logistics service R and variable of competition degree F are instructed to build a more fitting model-the model of cost-oriented price-making for logistics service. In succession, an example of ANDE (a TPL corporation in China) bidding to Kerry Oils & Grains Tianjin project is applying the model to make the price of logistics service.