Pricing Strategies TBN Supports

Pricing Strategies TBN Supports

TBN Supported Pricing Strategies

TBN supports the vast majority of pricing strategies used by motorcoach operators in North America. 

Miles vs. Hours vs. Daily Rate Comparison

In this pricing strategy the following calculations are used to find which is the highest- These prices are not additive but comparative. 
  1. Total trip miles (departing from and returning to the yard) x your per mile rate= Milage Cost
  2. Total hours (from yard departure to yard return) x your per hour rate= Hourly Cost 
  3. Daily minimum rate (or multi day minimum for multi day trips)
Whichever of these is the greatest is the one used for pricing purposes.
TBN calculates these on a day-by-day basis, not in the aggregate for the trip. This ensures that each day is used to calculate the actual costs and situations like long travel days are not lost in the wash of a multi day trip. Legacy systems have long aggregated total mileage and hours across the duration of the trip which have caused a disconnect from actual costs associated with long travel days resulting in lost revenue and the potential for trip costs to be under operations costs on certain days of the trip. 

Advanced Miles vs. Hours vs. Daily Rate Comparison

Similar to Miles vs. hours vs. daily rate calculation this allows for a total comparison of miles, hours and a protective daily rate. In this calculation however it allows you to use different prices for live and dead miles and hours. In this case, the calculations are as follows- 
  1. (Total dead miles (miles from the yard to the first pickup point and the last drop back to the yard) x dead miles rate) + (Total live miles (first pickup to last drop-off)  x live mile rate)= Milage Cost 
  2. (Total dead hours (hours from the yard to the first pickup point and the last drop back to the yard) x dead hours rate) + (Total live hours (first pickup to last drop-off)  x live hours rate)= Hours Cost 
  3. Daily minimum rate (or multi day minimum for multi day trips
Whichever of these is the greatest is the one used for pricing purposes.
TBN calculates these on a day-by-day basis, not in the aggregate for the trip. This ensures that each day is used to calculate the actual costs and situations like long travel days are not lost in the wash of a multi day trip. Legacy systems have long aggregated total mileage and hours across the duration of the trip which have caused a disconnect from actual costs associated with long travel days resulting in lost revenue and the potential for trip costs to be under operations costs on certain days of the trip. 

Cost Plus

Cost plus is an additive pricing structure instead of a comparative. In cost plus you set a base rate minimum and add fees for hours and miles in addition to that base rate. For this, the following equations are used. 
  1. Initial cost + (total hours x hourly rate) + (total miles x milage rate) = Trip Cost
With our cost plus calculations there is the ability to include a set amount of either miles or hours. This would mean for example that a base rate of $1200 could include 5 hours and up to 100 miles. 

Advanced Cost Plus

Similar to cost plus, Advanced Cost Plus allows you to use an additive pricing model. In the advanced version you have the ability to include or exclude the following from the equation as well. 
  1. Dead Miles
  2. Dead Hours
  3. Wait Time
  4. Multi Day Pricing
Advanced pricing settings are turned off in new accounts by default. Contact TBN support to turn these features on in your account. 

Standard Vehicle Pricing Setup Video- 


Advanced Pricing Setup Video- 


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