Pricing & Value
Q: Why does professional frozen food delivery cost more than regular courier?
Because physics is expensive, regulatory compliance costs money, and professional equipment isn’t subsidized by venture capital.
Professional frozen food delivery costs 3-5× more than ambient courier (R160-270 per delivery versus R45-85 general courier). This isn’t arbitrary markup. It’s thermodynamics, regulatory burden, and capital costs passing through to pricing.
Equipment capital costs:
Refrigerated vehicle build:
- Base vehicle (1-ton to 4-ton chassis): R350,000-R550,000
- Refrigeration system installation: R95,000+ (mechanical TRU, not ice boxes)
- Insulated loadbox fabrication: R65,000-150,000 (ATP-rated thermal insulation, depends on base vehicle)
- Temperature monitoring systems: R8,000-15,000 (R638 complianceThe distinction between unregulated environmental conditions... More)
- Total: R600,000-R900,000 versus R350,000-R550,000 ambient courier vehicle
Capital recovery: Assuming 5-year vehicle life, 50,000 km/year, refrigerated vehicle costs R1.00-1.40/km more than ambient just for capital recovery before operating costs.
Operating costs – Fuel:
Refrigeration fuel consumption (1-ton Johannesburg operation):
- Base vehicle fuel consumption: 7 km/L average (Johannesburg conditions)
- Annual base fuel (50,000 km): 7,143 L
- Refrigeration penalty: +2.5-3.5 L/hour diesel (additional 20-30% fuel consumption)
- Annual refrigeration fuel (2,500 operating hours): 6,250-8,750 L
- Diesel price: R22/L
Annual fuel costs:
- Base vehicle fuel: 7,143 L × R22/L = R157,143
- Refrigeration fuel: 6,250-8,750 L × R22/L = R137,500-192,500
- Total refrigerated courier fuel: R294,643-349,643/year
Comparison:
- Ambient courier (no refrigeration): R157,143 fuel/year
- Refrigerated courier: R294,643-349,643 fuel/year
- Refrigeration penalty: R137,500-192,500/year
Operating costs – Maintenance:
Specialized maintenance:
- Refrigeration system service: R8,000-12,000/year
- Refrigerant recharging: R3,000-5,000/year (R404a at altitude requires careful management)
- Compressor rebuilds: R15,000-25,000 every 3-4 years
- Control system diagnostics: Specialized technicians charging premium rates
Standard vehicle maintenance: Same as ambient courier, plus refrigeration complexity
Total maintenance penalty: R15,000-25,000/year versus ambient vehicles
Regulatory compliance costs:
R638 Food Safety Certification:
- Temperature monitoring equipment: R8,000-15,000 initial
- Data logging systems: R2,000-4,000/year (cloud storage, software licenses)
- Compliance audits: R5,000-8,000/year
- Record-keeping labor: 2-4 hours/week administrative time
Food safety training: Drivers require specialized training for handling frozen products, understanding temperature requirements, recognizing equipment problems
Insurance:
Perishable goods insurance costs 40-60% more than ambient courier insurance due to:
- Product value loss risk from temperature excursions
- Equipment complexity increasing breakdown probability
- Regulatory liability (food safety violations carry severe penalties)
Route efficiency penalties:
Delivery density:
- Ambient courier: 40-60 stops per route viable (tight urban routes)
- Frozen courier: 15-25 stops per route practical (door opening thermal loads limit stop density)
Route speed:
- Ambient courier: 8-12 deliveries/hour
- Frozen courier: 2-4 deliveries/hour (temperature recovery time between stops)
Result: Fewer deliveries per vehicle per day = higher cost per delivery
Total cost breakdown per delivery:
Professional frozen food courierSpecialized logistics provider focusing exclusively on last-... More:
- Vehicle capital: R15-22 per delivery
- Fuel (including refrigeration): R35-48 per delivery
- Maintenance: R8-14 per delivery
- Insurance: R12-18 per delivery
- Driver labor: R45-65 per delivery
- Compliance/administration: R8-12 per delivery
- Total cost: R123-179 per delivery
- Typical pricing: R160-R270 (markup covers overhead, profit, risk)
Ambient courier:
- Total cost: R35-55 per delivery
- Typical pricing: R45-85
The margin isn’t higher – the costs are higher.
What you’re actually paying for:
- Mechanical refrigerationSelf-contained refrigeration systems mounted on vehicles, tr... More equipment that works at Johannesburg altitude in 35°C summer heat with 20 door openings per route
- Fuel to power refrigeration throughout 6-8 hour routes (not just vehicle movement)
- Regulatory compliance that keeps you legally safe and your products genuinely frozen
- Professional expertise – drivers who understand cold chain, not just “turn left at the robot”
- Risk management – proper insurance, temperature monitoring, documented proof of compliance
Industry alternatives (cheaper but inadequate):
“Temperature-controlled” courier using ice packs: R75-120 per delivery
- Works for first 2-3 stops
- Progressive warming thereafter
- No R638 complianceThe distinction between unregulated environmental conditions... More
- No temperature documentation
- Your brand reputation gambled on finite thermal mass
Amateur courier with “frozen packaging”: R50-85 per delivery
- Ice packs provided by sender
- No temperature monitoring
- No compliance certification
- Products arrive partially thawed
- Sender absorbs all product loss risk
Our pricing:
We charge R160-R270 per delivery depending on:
- Geographic zone (urban core cheaper than extended suburban)
- Order size (consolidation reduces per-item cost)
- Delivery windowSystematic tracking and communication of delivery progress t... More flexibility (scheduled routes cheaper than on-demand)
- Volume commitments (regular customers get preferential rates)
This isn’t “premium pricing” – it’s cost-recovery pricing for equipment that actually works. We’re not subsidizing growth with investor funding. We’re operating sustainably with professional equipment and honest pricing.
You cannot buy professional frozen food logistics at amateur prices. Physics doesn’t negotiate.
Related Resources:
Q: How are refrigerated courier prices calculated?
Distance, delivery density, temperature requirements, and whether we can consolidate your delivery with other customers’ orders on optimized routes.
We don’t use magical pricing algorithms or “dynamic surge pricing.” We use actual cost accounting based on measured operational data from 770,000+ kilometers of refrigerated delivery.
Primary pricing factors:
1. Geographic zone (50-60% of cost variation)
Urban core (Johannesburg CBD, Sandton, Cape Town CBD):
- High delivery density enables route consolidation
- Multiple customers per route reduces per-delivery cost
- Shorter distances between stops
- Pricing: R216-R270 per delivery
Suburban (residential areas, industrial parks):
- Lower delivery density
- Fewer customers per optimized route
- Longer distances between stops
- Pricing: R216-R270 per delivery
Extended areas (Worcester, Hermanus, Springs):
- Low delivery density, often single delivery per route segment
- Longer total distance
- Cannot consolidate with other customers efficiently
- Pricing: R220-R350 per delivery
2. Delivery windowSystematic tracking and communication of delivery progress t... More flexibility (20-30% cost variation)
3. Order size (15-25% cost variation)
Single item / small order (average 30kg):
- Fixed costs spread over minimal revenue
- Base rate applies
Bulk order (30kg+):
- Better payload utilization
- Fixed costs amortized over larger order
- Volume discount: -5-20% off per-unit rate
Pallet quantities (100kg+):
- Consider road freight instead (LMC Express partnership)
- Potentially lower cost per kg for large volumes
4. Service frequency (10-20% cost variation)
Occasional customer (ad-hoc orders):
- Full retail pricing
- We accommodate when route capacity available
Regular customer (weekly scheduled deliveries):
- Predictable volume enables better route optimizationTemperature-controlled last-mile logistics operations specif... More
- Priority routing on consolidated routes
- Preferred pricing: -10-15% discount
High-volume customer (daily deliveries, 20+ stops/week):
- Dedicated route slot allocation
- Guaranteed capacity
- Contract pricing: -15-20% discount
5. Additional requirements (added costs)
Standard delivery:
- Direct handoff to recipient
- No special handling
- Included in base price
Special requirements:
- Weekend/holiday delivery: +R400
- Multiple delivery attempts: +R40 per attempt
- Signature required / proof of delivery documentation: Included
- Temperature data logging documentation: Included (R638 complianceThe distinction between unregulated environmental conditions... More)
Sample pricing scenarios:
Scenario 1: E-commerce frozen meals
- Origin: Johannesburg industrial area (your production kitchen)
- Destination: Sandton residential
- Order size: 15kg frozen meals
- Frequency: 15-20 deliveries per week
- Delivery windowSystematic tracking and communication of delivery progress t... More: 4-hour afternoon window
- Price: R216 per delivery (contract rate with volume commitment)
Scenario 2: Restaurant meat supplier
- Origin: Cape Town warehouse
- Destination: Various Cape Town restaurants (8 different locations)
- Order size: 45kg average per restaurant
- Frequency: 2× weekly scheduled delivery
- Delivery windowSystematic tracking and communication of delivery progress t... More: Morning delivery before lunch service
- Price: R155 per delivery (optimized route consolidating all 8 restaurants)
Scenario 3: Individual customer order
- Origin: Pretoria specialty butcher
- Destination: Johannesburg northern suburbs
- Order size: 20kg vacuum-packed steaks
- Frequency: One-time order
- Price: R270 (suburban zone + ad-hoc customer)
What’s NOT included in our pricing (unlike some competitors’ hidden costs):
- Fuel surcharges (our prices include fuel at current rates, adjusted quarterly)
- “Cold chain handling fee” (this is refrigerated courier – temperature control is included, not an addon)
- Failed delivery charges if recipient not home (we coordinate delivery timing in advance)
- Temperature monitoring fee (R638 complianceThe distinction between unregulated environmental conditions... More included)
Request a quote:
We provide transparent pricing quotes based on:
- Your origin location (pickup address)
- Destination location(s) (delivery addresses)
- Expected order frequency and volumes
- Delivery windowSystematic tracking and communication of delivery progress t... More requirements
- Any special handling needs
No hidden fees. No dynamic surge pricing. No venture capital subsidies masking real costs. Just honest pricing for professional refrigerated transport.
Related Resources:
Q: What's included in your frozen food courier service?
Mechanical refrigerationSelf-contained refrigeration systems mounted on vehicles, tr... More, continuous temperature monitoring, R638-compliant documentation, and drivers who understand cold chain – not just “we put your box in a van.”
This isn’t itemized nickel-and-diming. Professional frozen food logistics is a complete system. Here’s what you’re actually getting:
Temperature control (the primary service):
- Mechanical refrigerationSelf-contained refrigeration systems mounted on vehicles, tr... More maintaining -18°C ± 2°C throughout route
- Continuous operation throughout delivery route (not “refrigeration only during highway driving”)
- Recovery from door openings within 10-15 minutes between stops
- Equipment sized for Gauteng altitude (25-30% oversized versus sea-level specs)
Monitoring and compliance:
- Real-time temperature sensors with data logging (1-minute interval sampling)
- R638 food safety compliance documentation
- Temperature log data available upon request for any delivery
- Driver training in cold chain handling procedures
Pickup and delivery logistics:
- Scheduled pickup at your location within agreed time window
- Professional handling (frozen products treated as perishable, not thrown like parcels)
- Route-optimized delivery combining multiple customers (reduces your cost through consolidation)
- Direct handoff to recipient (not left on doorstep in Johannesburg summer heat)
- Delivery confirmation with GPS timestamp
Communication and coordination:
- Delivery windowSystematic tracking and communication of delivery progress t... More notification to recipient (we coordinate timing to ensure someone’s home)
- Real-time delivery tracking (you and recipient can see vehicle location)
- Driver contact available for coordination issues
- Failed delivery notification with re-delivery coordination (not “we left a note, figure it out”)
Risk management:
- Professional goods-in-transit insurance covering product loss from temperature excursions
- Documented temperature data protecting both parties in quality disputes
- Proper food handling procedures (drivers understand frozen food isn’t just “cold parcels”)
What’s explicitly NOT included (and why):
Packaging materials:
- You provide sealed, labeled packaging appropriate for product
- We provide temperature control, not packaging supplies
- Reason: Product-specific packaging is sender’s responsibility (vacuum bags for meat, containers for prepared meals, etc.)
Storage before/after delivery:
- We maintain -18°C during active transport
- We don’t provide warehousing or extended storage
- Reason: We’re a courier service, not a cold storage facilityPurpose-built warehouses maintaining controlled low temperat... More
Product liability:
- Our insurance covers transport-related losses
- Product quality, food safety, labeling compliance is sender’s responsibility
- Reason: We control temperature; you control product safety and regulatory compliance
Returns handling:
- Standard delivery is one-way (origin → destination)
- Return transport requires separate booking
- Reason: Cold chain logisticsThe comprehensive management of temperature-controlled suppl... More requires proper planning, not ad-hoc “just bring it back”
Comparison to what competitors actually include:
Professional cold chain courier (us):
- Mechanical refrigerationSelf-contained refrigeration systems mounted on vehicles, tr... More: ✓
- R638 complianceThe distinction between unregulated environmental conditions... More: ✓
- Temperature monitoring: ✓
- Trained drivers: ✓
- Documentation: ✓
Amateur “temperature-controlled” courier:
- Mechanical refrigerationSelf-contained refrigeration systems mounted on vehicles, tr... More: ✗ (ice packs in insulated box)
- R638 complianceThe distinction between unregulated environmental conditions... More: ✗ (not certified)
- Temperature monitoring: ✗ (maybe a thermometer if you’re lucky)
- Trained drivers: ✗ (general courier driver with frozen products mixed with ambient parcels)
- Documentation: ✗ (no temperature logs)
Ambient courier with “frozen packaging”:
- Temperature control: ✗ (sender provides ice packs, hope, and prayers)
- Everything else: ✗
The value proposition:
You’re paying R160-R270 per delivery for complete professional frozen food logistics. You’re not paying for “someone to drive your ice-packed box around.” You’re paying for:
- Engineering expertise (equipment properly sized for South African conditions)
- Regulatory compliance (protecting your business legally)
- Operational reliability (products arrive frozen, not partially thawed)
- Professional risk management (insurance, documentation, trained personnel)
- Honest communication (we tell you what temperature we maintain and prove it with data)
This is what professional cold chain costs. Everything else is amateur operations gambling with your product quality and hoping customers don’t notice partially thawed deliveries.
Related Resources:
