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Freight brokerage Marketing Contribution ROI: worked example

Compare attributed contribution with marketing cost.

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Freight brokerage / shipment economics
Answer

With the illustrative inputs below, the result is 100 %.

Try this with your own numbers

Formula and worked example

ROI = (revenue × contribution margin − marketing cost) / marketing cost × 100

Example figures
InputExample
Attributed revenue15,000
Pre-marketing contribution margin40 %
Marketing cost3,000
Calculated result100 %

Choose reliable inputs

Compare route time, vehicle cost, delivery density and collection timing. For this freight brokerage calculation, use completed route logs, fuel receipts and delivery records and a consistent definition of one shipment.

  • Carrier charges: include the portion belonging to this shipment or reporting period, and record where the value came from.
  • Admin time: include the portion belonging to this shipment or reporting period, and record where the value came from.
  • Claim handling: include the portion belonging to this shipment or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

How is marketing ROI different from ROAS?

ROAS divides revenue by advertising spend. This model subtracts variable delivery costs and marketing spend before calculating return.

Attribution is an input assumption; revenue is not the same as profit.

Compare a different assumption

What if this input changes?

If attributed revenue rises by 10%, this example changes by 20 %. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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