Grow your margins by marking up your freight

Freight shipping can be costly. Between dealing with the salaries for your shipping department, tracking and customer service, as well as basic costs from carriers, we know that shipping can add some serious weight to your overhead costs. Here at Freightview, our goal is to help you keep your shipping costs low by streamlining reporting, tracking, booking, and quoting, but we allow you to take these savings one step further. Marking up your freight can be a great way to minimize the impact that freight shipping can have on your margins. Many people fail to capitalize on freight markup as a cost-saving opportunity, but we try to make it as easy as possible for our users.

There are a couple of things you should consider before adding a mark up to your freight. Many customers mark up their freight because they have a high shipping volume, and deal with the significant cost of paying for packaging, choosing the right price and booking/loading the shipment, as well as paying the freight invoices. Adding an additional amount to your freight can be a great way to soften the blow of your normal shipping costs, or even create a new profit center.

When determining whether to mark up your freight, many people become concerned about the legality of the practice. But charging the customer extra for freight is very common and totally legal. Just be careful about the language you use on your invoicing. Claiming that the charges are simply for "freight" would be a deceptive practice and could get you into some trouble, but using the phrase "shipping and handling" can avoid this issue.

On Freightview, we allow our customers to apply a percentage markup to their freight. With our markup feature, the account owner can assign a specific percentage markup that is unique to each user on the account. To view and change the percentage markup applied to your users, just go to your Freightview homepage and click the "+" symbol next to your list of users.

freight markup

This feature is handy because the user can communicate to the customer what their freight is going to cost without having to calculate the markup themselves. It streamlines the process and eliminates the human error that can sometimes occur when people are calculating markup themselves. The rate the user sees (with the actual quote plus the markup) is the only price they will be able to see, so they can communicate it immediately to the customer.

freight tms markup

Some of our customers have just determined that they would like to add a flat dollar amount to their customer's invoices for their mark up, but we recommend against that method because some shipments are more costly than others.

Among all our users this feature, the average markup is 19%. About 95% of users of this feature mark their freight up by 35% or less.

With Freightview's markup feature, you will still be billed the actual freight cost, and see the actual cost on your analytics and reporting.

We also offer markup on our API and our plugins, so your customers will be able to see the marked up rate when they're checking out on your website.


Schedule a no-obligation 15 minute demo of Freightview to see how what else we can do for your business.