Tag Archives: pricing

DHL increases prices by just over 2% in a decade…wow?!?

July 14th, 2009

A colleague of mine was running a DHL press conference last week and invited me along as a blogger (they just opened a big distribution centre locally).

During the Q and A one of the guys from DHL stated they have only increased prices twice in the last decade, one at 0.75% increase the other just over 1% making for ~2% increase.

That is amazing if you ask me.  As a point of comparison during that time crude oil prices (a driving cost in logistics) have gone from (inflation adjusted) $21.12/barrel in 1999 to $126/barrel in 2008! Source: InflationData.

How did they achieve it?

Well DHL has an internal measure (and belief) that they shouldn’t have to increase prices as long as they focus on productivity gains.

By driving productivity as costs increase DHL have actually been quite successful don’t you think?

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