Module 9: Understanding The Competition - Part 2

6 Questions

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Module Quizzes & Trivia

2014 Negotiating Parcel Agreements - Minimum Charge Change


Questions and Answers
  • 1. 
    In negotiating agreements, one of the most important details in parcel pricing is minimum package charges.
    • A. 

      True

    • B. 

      False

  • 2. 
    In a parcel carrier agreement, the minimum package charge is nonnegotiable.
    • A. 

      True

    • B. 

      False

  • 3. 
    Reviewing discounts on most commonly used service levels as well as a handful of commonly used accessorial and surcharges, is an essential aspect when negotiating and attaining a competitive agreement.
    • A. 

      True

    • B. 

      False

  • 4. 
    If a minimum package charge is not negotiated, the agreement discount will be constrained by the fact that the net transportation charge can drop below the minimum package charge list rate.
    • A. 

      True

    • B. 

      False

  • 5. 
    To negotiate a truly optimal agreement, shippers must be able to apply discounts and minimums across their entire service level distribution, and develop a strategy based on the "sweet spot" of both.
    • A. 

      True

    • B. 

      False

  • 6. 
    When negotiating a parcel agreement, what really matters is how the discounts and minimums apply to a specified segment of a shipper's parcel profile.
    • A. 

      True

    • B. 

      False