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Floor, Target, Stretch: How BidRight Prices Every Lane

BidRight produces three numbers for every lane in every RFP — the walk-away floor, the OR-target rate, and the stretch where good freight belongs. Here's the math behind each line.

The one-line answer

For every lane in every RFP, BidRight produces three numbers: Floor (walk-away), Target (hits your OR goal), and Stretch (where freight that fits your network belongs). Each is derived from four traceable inputs — the FreightMath OR model, your network position, the Quality of Freight score for that customer, and FreightMarks peer context for the lane corridor.

The problem with spreadsheet bidding

Most carriers price RFPs the same way every cycle: pull last year's rate, adjust for fuel, sprinkle in a margin, submit. The problem isn't the spreadsheet — the problem is what's missing from it:

  • Cost-to-serve at the lane level. Not company-average cost — the actual variable, overhead, tolls, and trailer-pool burden of moving freight on this specific lane with the equipment and labor mix that would haul it.
  • Network positioning. A load isn't just its own economics. It positions the tractor for what comes next. Pricing each lane in isolation ignores the cost of getting in and getting out.
  • Customer behavior. A reliable tender shipper with clean dock performance is worth a different price than an erratic one. The behavior signal is real and BidRight prices it in.
  • Award-mix reality. You bid 100 lanes; you don't win 100. The OR impact of a partial award is different than the OR impact of the full submission. BidRight models the difference.

The three lines, in detail

Floor — the walk-away

The Floor is your variable cost plus the lane-specific overhead, trailer-pool, and accessorial burden — full stop. Below this number, the load destroys margin no matter how it's positioned in the network. The Floor is what gets printed on the dispatcher's screen and the customer-service rep's screen so spot tenders below it don't get accepted by accident.

Target — the OR-goal rate

The Target is your Floor plus the margin required to hit the operating ratio goal you've set. This is the number you submit on a lane you'd like to win. Most carriers should submit at or above Target on lanes that score B or better in Quality of Freight.

Stretch — the A-tier price

The Stretch is the Target plus an A-tier premium — the rate that freight that genuinely fits your network deserves to command. On lanes that QoF scores as A+ for your operation (network builders), the Stretch is where the conversation should start.

The four inputs

Every price line is the composite of four traceable signals:

  1. FreightMath OR — True cost-to-serve at the segment level, from the live ABC model. Variable, overhead, tolls, trailer-pool, accessorial. The cost-side anchor for every line.
  2. Network Position — Inbound/outbound balance for the origin and destination markets, deadhead exposure of the surrounding lane segments, and the cost of acquiring and shedding freight there.
  3. Quality of Freight — The customer's behavior score: tender quality, dock performance, accessorial recovery rate (real, not pledged), and lane density contribution.
  4. FreightMarks Context — Peer benchmark ranges for the lane corridor, equipment class, and length-of-haul band. Tells you how much pricing room there actually is.

Where BidRight earns its keep

The pricing math is the same engine in every workflow:

  • Annual bid round — Upload the RFP; receive Floor / Target / Stretch on every lane plus an attractiveness ranking; submit the price sheet
  • Mini-bid / spot award — 24-hour response, same engine
  • Mid-year re-pricing — Surface customers whose lanes have drifted enough to justify the conversation now
  • Pro-forma award modeling — Simulate post-award OR before signing
  • Lane-level walk-away — Print Floor to every operations seat
  • Sales coverage planning — Find shippers whose lanes already match your Stretch profile

Three numbers, four inputs, one auditable engine. No spreadsheet duct tape.

Frequently asked questions

What are BidRight's Floor, Target, and Stretch price lines?

BidRight generates three price lines for every lane: Floor (the walk-away rate — your variable plus lane-specific cost; below this, the load destroys margin), Target (the rate that hits your OR goal after full cost-to-serve and network positioning), and Stretch (the rate freight that genuinely fits your A-tier network should command).

What goes into a BidRight price line?

Four inputs: FreightMath OR (true cost-to-serve), Network Position (inbound/outbound balance and deadhead exposure), Quality of Freight (customer behavior, tender quality, accessorial profile, density), and FreightMarks Context (peer benchmark ranges for the lane corridor).

How is BidRight different from spreadsheet bid pricing?

Spreadsheet bidding prices lanes in isolation using last cycle's averages. BidRight prices each lane inside the live network it must actually run in — charging deadhead to the move that requires it, modeling award-mix impact on OR, and applying real (not pledged) accessorial recovery to every rate.

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