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Mid West Trucking

 

Mid-west Trucking

 

 

Answer-1: Yes, I agree with the concern of David White regarding the unfair price difference between eastbound and westbound shipments however the operation costs are almost the same for both shipments. We can see that the company is trying to cover their loss of westbound shipments which are not profitable like eastbound shipments so they are charging the eastbound shipments heavily to gain the profit which they are losing in the westbound shipments. Therefore, it is unacceptable to charge more to eastbound customers only because customers have less demand than eastbound.

 

 

Answer-2: If the company stops providing the discounts on westbound freights and charges them the same as eastbound then the customer of the westbound will not accept the sudden high price on transportation and they will look for another trucking companythat provides them the lower price than Mid-West truck. Mid-West trucking will suffer a huge loss on the westbound side than today as they have very little demand in compare to eastbound and if they will increase the price for westbound then they see more dip in the demand of the customers.

 

Answer-3: From my point of view, the company should not immediately stop the discount they are providing to the westbound shipments because if they increase the price immediately then the customers may feel unethical if the discount is stopped suddenly based on another customer’s point of view. So according to me, they should slowly reduce the discount as per the increase in operation cost. Therefore, if we increase the cost slowly to avoid such kinds of issues.

 

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