Compare and contrast cost-of-service with value-of-service as alternative rate-making strategies?

cost-of-service is a carrier pricing strategy where the carrier establishes a price for transportation service based on their cost of providing the service along with a profit margin. Value-of-service is a carrier pricing strategy where the price for the service is based on the value of the shipped stock than the service cost. Stock valued higher by the shipper will cost more to be transported. Cost-of-service strategy is mostly used when the stock is of low value.

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