Case Question 4:
Assume the Hardee has no loaded backhaul to return the vehicle and driver to pittsburgh. How would you account for the empty backhaul costs associated with this move? Would you include those in the head haul move? How would this impact your pricing strategy?
Value of service – pricing according to the value of the commodity being transported (more valued comodities are more expensive to transport)
Cost of service – setting prices on the basis of the cost of providing the service