COSTING, WILLINGNESS TO PAY, AND PRICING IN FREIGHT FORWARDING BUSINESSES A CASE STUDY IN PT CIPTA EKSPEDISI PERWIRATAMA

• Main Author: Fanissabelle, Hasheena
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/72349
• Institution: Institut Teknologi Bandung

With the growing and advancement of trades, freight forwarder needs will be considerably increased. One of many freight forwarders in West Java is PT Cipta Ekspedisi Perwiratama. The company has only been running since November 2015 with its main service is transporting life birds and feed mill with trucks. The current pricing formula in PT Cipta Ekspedisi Perwiratama is not profitable for short distance and above 200 km. PT CEP current profitability is 0.7%. The objective of the paper is to analyze the pricing policy for the company in order to increase company profitability. The conceptual framework is the new pricing policy made from total cost analysis and percentage of profit margin with take into consideration of customer value proposition and competitive advantage. The methodology used quantitative and qualitative. The total cost is from company latest operating cost data and calculated with traditional costing method. Qualitative method was conducted to analyze the competitor, willingness to pay and customer value proposition. Researcher had interviewed six competitors and one customer. The finding of the research is the running cost is the highest contributor for total vehicle operating costs, with 60%. The highest loss is Rp842.767 meanwhile the highest profit is Rp1.319.248. PT CEP should cut the asset purchasing and maintenance cost since fixed costs are installment cost will be constant. The customer value proposition of PT CEP are pricing and discount. Customer’s willingness to pay is from previous allocation budget for freight forwarder. Out of 48 routes, 30 routes are competitive with both pricing. Recommendation of the researh is PT CEP can continue using negotiated and listed pricing.