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

Fanissabelle, Hasheena and Yudoko, Gatot (2016) COSTING, WILLINGNESS TO PAY, AND PRICING IN FREIGHT FORWARDING BUSINESSES: A CASE STUDY IN PT CIPTA EKSPEDISI PERWIRATAMA. International Conference on Ethics of Business, Economics, and Social Science. ISSN 2528-617X

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Abstract

With the growing and advancement of trades, freight forwarder needs will be considerably increased. One of many freight forwarder in West Java is PT Cipta Ekspedisi Perwiratama. The company has only been running since November 2015 with its main service is transporting lifebirds and feedmill with trucks. The current pricing formula in PT Cipta Ekspedisi Perwiratama is profitable for maximum distance is 200 km and their current profitability is 0.7%. The objective of the paper is to find the new 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 are from company latest operating cost data and calculated with traditional costing method. Qualitative method were conducted to analyze the competitor and customer value proposition. Researcher had interviewed six competitors and one customer. The findings of the research is the running cost contributes 60% for total vehicle operating cost since the diesel cost contributes 46%. Out of 48 routes, 15 routes are not competitive. The highest loss is Rp842.767 meanwhile the highest profit is Rp1.319.248. The customer value proposition is pricing, quality, performance, discount, insurance, and comfort. Their willingness to pay is from previous allocation budget for freight forwarder. PT CEP is not competitive since the loss are too many even though both negotiated and list prices are cheaper than competitors. Recommendations for PT CEP is both negotiated and list prices can be using with the provision of cutting overhead costs. Keywords: Customer Value Proposition, Competitive Advantage, Costing, Pricing, Willingness to Pay

Item Type: Article
Subjects: Prosiding > Proceeding of ICEBESS 2016
Prosiding
Divisions: Fakultas Ekonomi > Pendidikan Ekonomi
Depositing User: Admin Pendidikan Ekonomi FE
Date Deposited: 30 Sep 2016 00:17
Last Modified: 01 Feb 2019 01:48
URI: http://eprints.uny.ac.id/id/eprint/41787

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