How much profit to add to each freight quotation, to still undercut all the majors??

[Shipping868]

Hi, i currently run a small shipping company where we act as the freight forwarder for shipments from China.


I personally am not based in China, and so our business model framework is that i have a business partner in China who runs his own small shipping company.

I focus on the customer, advertising, and financial side of attracting customers to us who want to ship from China,
but who wouldn't ever trust a small chinese based company, and so would normally only ever be using TNT, DHL, ect, or having their factory ship it by EMS.
I take their shipment details and pass them to my partner and he gives me his quote (with his profit already included),
and then i quote the customer my price (with my profit included too).



I am having quite abit of trouble with this though as im never exactly sure what the maximum i can charge, but while still undercutting ALL of the major shipping companies price for that same shipment.

With airfreight shipments for example my partner quotes me roughly 8-9usd per KG, and i then quote the customer 12-13usd per KG.


Some of the time this is undercutting the price that the major shipping companies would offer, and so i get the order.
But other times i often get no reply, and so i know that i have quoted too high and not undercut.



So if anyone could provide me with the 2 following things i would really really appreciate it-

1. Some decent comparion websites that give you the live automatic price quote for cargo based on its dimensions from a few of the big names.
(I had found a very good one of these before but forgot what its name was about 2years ago)

2. As a rough guide what % profit do you/would you advise me taking on the inital quote for airfreight, and for ocean freight if the % would be significantly different??





Thanks

 

[Paul Kelly ICHYB]

What country are you paying that price from from/to?

I would have expected it to be a couple dollars/kg from China to UK!

 

[davezzr]

You dont really have a business partner in china from what you are telling us.he gives you his quote with his profit included,where is your share?
you have to add your profit this end.
so you are an agent pure and simple you do your own advertising,and pay your own bills.
why dont you start an agency with as many shippers as you can handle and will be better set to offer better deals as you will be able to use the best suited shipper .......simples