Day-to- Day Pricing Calculations
Day to Day Pricing Comparisons
We're thrilled to introduce our groundbreaking feature that lets you calculate prices on a day-to-day basis, empowering you to manage your revenue like never before. With this feature, you can easily distinguish between high-mileage and low-mileage days and compare them against the daily rate. What's even better is that our system takes into account your pricing calendar every day, ensuring that you capture higher rates on busy days, such as weekends, during multi-day trips. We're incredibly excited to bring this game-changing innovation to you, making revenue management a breeze!
How It Works
Comparative Components
Legacy systems only allowed for the most simple of rate comparison calculations. This included putting all of the days and milage into a single bucket for the trip. This may have looked something like this-
Input | Value | Cost | Total Price |
Total Trip Miles | 2369 | $5.50 | $13,029.50 |
Total Trip Days | 6 | $1950 | $11,700.00 |
The system would then compare the two and decide that this trip cost should be $13,029.50
With TBN's ability to do daily price comparisons we give you the power to manage revenue based on the actual costs for the day. In our system the days are looked individually and compared-
In this case we will look at a 3 day trip-
With our daily pricing modal it is easy to see exactly how a price was calculated on any given day. In the case of this first day you can see that the amount of actual hours made this an hourly priced day.
For day 2, a day where the vehicle is doing nothing, the multi day minimum price is used.
And on Day 3 you can see we are back to another long hours day.
Pricing this way ensures that actual costs that have historically been lost in aggregate, are captured on a daily basis, not only increasing the accuracy of the quote, but also ensuring that margins stay high.
Dynamic Pricing Calendar
One of the most challanging things companies have had to address as they looked at using dynamic pricing with legacy solutions was how to capture the benefit on multi day trips. One of the biggest challenges was that some of the systems would look at the first day of the trip and use that rate for the entire duration. The problem with that, and why those companies have been looking for a better solution was that it often resulted in vehicles being booked at rates below market value on high demand days.
Take for example a 4 day trip that leave on a Wednesday during your busy time of year. A time where you are assured to be sold out on the weekends. During that time if you had decided to mark up rates 20% on Friday, Saturday and Sunday, and you booked that trip using Wednesday's rate, you could have left significant margin in unrealized revenue before you even started the trip.
With TBN's daily price comparison we use your pricing calendar event every day as the rates are calculated so in the case above, Wednesday and Thursday would have been a lower rate, while Friday, Saturday and Sunday would have been calculated using your 20% price increase.
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