Study On Pricing Of Express Companies Based On Differences In Demand

Express companies will face a reshuffle so they will not be allowed to occupy marketsonly by taking advantage of price competition any more. Customers’ various demand makesexpress companies have to set a scientific price on the basis of customers’demand. So expresscompetitors will pay more attention to the customers’ demand. Setting prices on the basis ofcustomers’demand will help express companies rapidly occupy the individual demand marketsegments. By analyzing the current theories, this paper defines the concept of express deliveryand express service and sets forth the theory of price setting method and the objectives ofprice setting. This paper divides the markets of individual express demand with statisticsmethod on the basis of research data, then concludes three basic factors influencing prices:demand for service quality, demand for timeliness and demand for basic service. This paperalso deeply analyzes the cost behavior of express companies. It analyzes the influence ofdemand differences, sets up the express price system on the basis of demand and cost, appliesthe price setting pattern and then quantizes the price by the application. Lastly, the paperconcludes that express companies should occupy target markets in the light of its advantageand flexibly apply the price setting pattern on the basis of market demand. It will help expresscompanies get rid of meager profit and increase service quality and the ability of makingprofit.