The million dollar question everyone asks …
That seems to be a typical ‘first’ question decision makers ask service providers including carriers, trucking companies, brokers and anyone else involved in the transaction. It’s alarming. I get it. Everyone in the freight forwarding and Customs brokerage business is price conscious. There are more than dozen of us in the business. So what separates one from the other outside of service? Price. Everyone wants the top tier service at the lowest price.
It’s a common scenario. Sales reps for trucking companies, airlines and ocean carriers are constantly knocking on your door asking what it takes to conduct business together. All too frequently I hear decision makers point blank answer “what are your rates?”
After hearing this particular question being asked regularly I had to stop and ask a friend who owns a trucking company for his opinion. He said price is a logical first question. A typical business wants to maximize profit and manage costs.
Why don’t people ask about the quality of the service? what types of freight are they capable of handling? What areas/trade lanes are their specialties? Ask vendors for examples of what they can offer service wide? EDI reporting? Electronic proof of deliveries?
Shouldn’t those questions come first? If we continue to put vendors and providers in a hole instantly over price we put ourselves in an uncomfortable box. Discussions rarely advance when price is the first area of concern. Sometimes a more expensive provider can deliver the kind of service that elevates your reputation and status with the client. It can open up opportunities to handling other business originally impossible.
As an industry we should push our service providers to demonstrate they can perform. Rates are important but what good is a cheap rate if it the vendor cannot cover their costs. I’m not advocating we overpay or accept high rates but I’m saying we should be reasonable. Cheap doesn’t always work out in the best interests of everyone involved.