In transportation pricing, "value-of-service"establishes rates at levels that cover a carrier's fixed and variable costs, plus some profit margin, and it establishes the lower limit of rates.

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The "value-of-service" pricing establishes rates based on the perceived value to the customer, not necessarily covering costs or setting a lower limit. It is more about what the market can bear rather than cost coverage.

In Transportation Pricing, "Value-Of-Service"establishes Rates at Levels That Cover a Carrier's