Which pricing approach allows customers to lower rates as their shipping volume increases?

Which pricing approach allows customers to lower rates as their shipping volume increases?

• A. FedEx Earned Discount pricing
• B. Flat-rate pricing
• C. Standard pricing
• D. Dynamic pricing

Answer: (A)

Volume-based discounts, often called earned discount pricing, reward you for shipping more. The idea is that as your monthly or quarterly shipping volume increases, you qualify for higher discount percentages off the standard rates. So the more you ship, the lower your effective rate becomes. This contrasts with fixed approaches like flat-rate pricing, which charges the same amount regardless of how much you ship, and standard or dynamic pricing, which either stays the same or fluctuates based on factors other than your own volume (like demand or capacity). With earned discount pricing, the incentive is clear: increasing volume leads to progressively larger savings on each shipment. For example, shipping more can move you into higher discount tiers, reducing the per-shipment cost as your volume grows.

Volume-based discounts, often called earned discount pricing, reward you for shipping more. The idea is that as your monthly or quarterly shipping volume increases, you qualify for higher discount percentages off the standard rates. So the more you ship, the lower your effective rate becomes. This contrasts with fixed approaches like flat-rate pricing, which charges the same amount regardless of how much you ship, and standard or dynamic pricing, which either stays the same or fluctuates based on factors other than your own volume (like demand or capacity). With earned discount pricing, the incentive is clear: increasing volume leads to progressively larger savings on each shipment. For example, shipping more can move you into higher discount tiers, reducing the per-shipment cost as your volume grows.