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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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In today's fast-evolving transportation and logistics landscape, software-as-a-service (SaaS) solutions have become essential operational tools rather than optional luxuries. However, for fleet operators, freight brokers, and logistics providers, selecting the right logistics SaaS solution involves more than just comparing features—it requires understanding how pricing models directly impact your bottom line.
Two dominant pricing structures have emerged in the transportation and shipping software market: per-mile and per-shipment models. Each approach creates fundamentally different economic incentives, operational behaviors, and scaling considerations that can significantly influence your logistics operations.
The Fundamentals of Transportation SaaS Pricing Models
Per-Mile Pricing Explained
The per-mile pricing model charges customers based on the distance traveled by their shipments. This model typically involves:
- A set rate for each mile driven
- Tracking miles via GPS or route planning systems
- Monthly invoices based on total mileage accumulated
According to recent industry data from Armstrong & Associates, approximately 38% of transportation management systems (TMS) now offer some form of distance-based pricing, a 12% increase from just five years ago.
This model is particularly popular among full truckload carriers and companies with predictable, high-volume long-haul routes.
Per-Shipment Pricing Explained
Alternatively, per-shipment pricing charges a flat fee for each shipment processed through the system, regardless of distance. This model typically includes:
- Fixed fee per shipment entered into the system
- Sometimes tiered pricing based on monthly shipment volume
- Costs that remain consistent regardless of shipment distance
Research from Gartner indicates that 54% of logistics SaaS providers offer per-shipment pricing options, making it the most prevalent model in the current market.
Key Considerations for Choosing Between Models
Route Characteristics and Network Design
Your existing network structure should heavily influence your pricing model selection:
For per-mile pricing:
- Beneficial for companies with consistent long-haul routes
- More predictable when network lanes are established
- Can optimize for route efficiency more directly
For per-shipment pricing:
- Ideal for companies with varied shipment distances
- Better for dense networks with numerous short shipments
- Provides budgetary certainty regardless of route changes
A logistics director at a mid-sized retailer told Supply Chain Dive: "We switched to per-shipment pricing when expanding into regional distribution, and our software costs became 23% more predictable quarter-over-quarter."
Operational Scale and Growth Trajectory
Your company's growth plans should inform which pricing model aligns best with future needs:
Per-mile considerations:
- Costs scale directly with geographic expansion
- Can become expensive when entering new, distant markets
- Often includes volume discounts at scale
Per-shipment considerations:
- More predictable during rapid growth phases
- Easier to budget when adding new customers or service areas
- Typically offers volume-based tier discounts
According to a 2022 benchmark study by Logistics Management, companies experiencing more than 15% annual growth tend to prefer per-shipment models for their predictability during expansion phases.
Real-World Impact: Case Studies in Transportation SaaS Pricing
Mid-Market Carrier: Switching from Per-Mile to Per-Shipment
A regional LTL carrier with 85 trucks operating in the Midwest switched from a per-mile to a per-shipment pricing model for their transportation management software.
Results:
- 17% reduction in total software spend
- Greater predictability in monthly technology costs
- Simplified budgeting process for the finance team
- Eliminated the need to audit mileage calculations
The operations manager noted: "When we primarily handled long-haul routes, per-mile made sense. As we've added more regional deliveries with shorter distances but higher handling complexity, per-shipment aligns better with our actual operational costs."
E-Commerce Fulfillment: The Hybrid Approach
An e-commerce fulfillment provider operating five distribution centers implemented a hybrid pricing model with their logistics SaaS vendor:
- Per-shipment pricing for standard parcel shipments
- Per-mile pricing for custom routing and dedicated fleet operations
This approach allowed them to optimize software costs based on shipment characteristics, resulting in a 14% overall reduction in technology spend while managing a 22% increase in overall volume.
Strategic Implications for Different Business Models
For 3PLs and Freight Brokers
Third-party logistics providers and freight brokers typically benefit from per-shipment models because:
- Their value is in shipment coordination, not just distance covered
- They handle varying shipment types and distances
- They can more easily pass consistent technology costs to customers
According to FreightWaves research, 67% of freight brokers prefer per-shipment pricing for their core transportation systems.
For Asset-Based Carriers
Carriers operating their own fleets often have different considerations:
- Per-mile often aligns with their fuel and maintenance cost structures
- Distance-based pricing matches how they charge customers
- Integration with ELD (Electronic Logging Device) data is more seamless
However, the trend is shifting. A survey by Transport Topics found that 41% of asset-based carriers have moved toward per-shipment models as they expand service offerings beyond simple point-to-point transport.
Future Trends in Transportation SaaS Pricing
The logistics SaaS market continues to evolve, with several emerging trends worth monitoring:
Consumption-Based Pricing: Some newer platforms are introducing truly usage-based models that charge based on specific features utilized rather than simple shipment or mileage counts.
Value-Based Pricing: Advanced platforms are beginning to tie costs to measurable business outcomes, such as percentage of on-time deliveries or freight spend reduction.
AI-Influenced Pricing: As artificial intelligence becomes more embedded in shipping software, we're seeing pricing models that account for the computational complexity of specific shipments rather than just their physical characteristics.
Subscription + Overage Models: Combining base subscriptions with overage charges for exceeding thresholds—creating predictability while accommodating growth.
Making the Right Choice for Your Operation
When evaluating logistics SaaS solutions, consider these practical steps:
Analyze Your Shipment Profile: Calculate your average shipment distance and the variation across your network.
Project Growth Patterns: Consider not just volume increases but geographic expansion plans.
Request Dual Quotes: Ask vendors to price their solution under both models to compare.
Run Historical Simulations: Apply both pricing models to your previous 12 months of shipment data to see which would have been more economical.
Negotiate Flexibility: The best partners will allow model changes as your business evolves.
Conclusion: Beyond Simple Cost Comparison
While comparing the direct costs of per-mile versus per-shipment pricing is important, the strategic implications extend far beyond monthly invoices. The right pricing model should align with your operational philosophy, support your growth strategy, and create the right incentives within your organization.
The most successful logistics operations view their shipping software not merely as a technology expense but as a strategic investment that shapes operational behavior. By selecting a pricing model that aligns with your business objectives, you transform your logistics SaaS from a necessary cost into a competitive advantage in an increasingly complex transportation marketplace.