Keystoning
Keystoning is a pricing approach where a logistics provider applies a standard markup by doubling the base cost of a service. For example, if the underlying cost is 100, the selling price becomes 200. This method is simple and predictable, making it easy to quote services quickly. It is often used for standardized services or add-ons where costs are stable.
In logistics, keystoning may appear in areas like documentation fees, small handling services, or value-added tasks. It helps providers cover overheads such as administration, systems, compliance, and support while maintaining consistent margins. While straightforward, it may not always reflect the actual effort involved for every shipment. Transparency becomes important so customers understand how pricing is structured.
Keystoning works best in scenarios where services are uniform and low-risk. For complex or high-volume operations, more detailed cost-based or value-based pricing is often preferred. Understanding keystoning helps shippers evaluate quotes accurately and compare pricing models across providers.
Frequently Asked Questions about Keystoning
Clear answers to the most common questions people have when learning about Keystoning.
It offers a simple, consistent way to price services, ensuring margins are covered without complex cost calculations.
No. It is usually used for standardized or smaller services, while major freight movements often follow negotiated or market-based pricing.
By asking for cost breakdowns and comparing quotes, shippers can understand markups and choose pricing models that best fit their needs.