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OK, this is a pet peeve of mine and I'm not sure who else has experienced this but I'm going to share it here.
We all know Pannu Transport went down the crapper recently to the surprise and applause of some (or many maybe?) and one of the things they would do is call all the time looking for rates. The rates would be good but somehow I'd always suspect they were just using them to compete without ever intending to give the freight we helped them bid on. One of the girls who used to work there, as nice as she is, called the other day and said she's at another company. She immediately asked for pricing. I told her immediately no and explained why. It was dead silent on the other end of the phone and she said ok. Pannu, unfortunately, had a habit of also wandering into our backyard talking to our clients. Thankfully, they are gone but others still exist and will follow.
However, there are others who will habitually call and who have never ever given one stick of freight - but think carriers are their unpaid rates department. For example, West Durham Transport, whoever they are, call occasionally and I have basically called her out on it and declined to quote. A brokerage in Cambridge would also expect quotes on everything and finally I said I'm not quoting shit until you pony up freight. And there's others who whore around, Traffic Tech being the most obvious and the Toronto office being the worst offender for asking for rates and then using them to compete against YOU - then make you call in for it and then expect YOU to do it for less than you quoted!
Obviously, you want to cultivate a relationship with companies and on a personal level with people who will give you freight when you need it. But you need to set guidelines.
Here's what I do whenever someone calls in for a rate, if they're not already a customer doing work:
1. Identify who it is: is it a broker, a one-man outfit, another carrier or is it a salesman from another company posing as a client? Get a call back number always. Are they anyone you've heard of? If you're like me, check the D&B/Equifax scores on Link quickly. Do they have an account set up with you? Have they ever?
2. The premise of the call: brokers will call you making it sound like they have freight but really it's a rate call in disguise. The question you have to ask is this: DO YOU HAVE THE FREIGHT NOW? If they do not and tell you (a) we're bidding it or (b) we're quoting on it, ask when they will know. If it's someone you think you want to deal with and they have something you can use, continue the call. If they don't have the freight, it's unlikely they will want to give it to you right away only because they still think they can find someone cheaper...and even then, they'll likely just put it on Link.
3. Rate callers will always ask what do you need before telling you anything more that would be of crucial importance that would impact on the rate, like tailgate delivery, bond, hazardous or handbombing. Ask them what the best rate they have and almost always they will tell you bullshit in the form of "Oh, you're the first call." More than a few people have said that and then I tell them "oh yeah? You never call with freight but I'm always the first call for rates...what's the deal with that?" Always ask for details.
4. If the freight is coming from or going to your own area or "backyard", insist on asking where it's going to and be wary. You will be amazed at how many people try to poach your own accounts. If they won't tell you (example: let's say you live in Woodstock ON - not a big town but if you have accounts in your own town or nearby and Traffic Tech is asking about freight to or from it, you best watch out) then decline to quote them until they do. You don't need to trump your own set rates and lose business.
5. Ask for the order!! Once you quote and establish a rate, tell the person asking for the qupte what the conditions are and if it's something based on you being in a specific spot today only, make them aware of it.
6. Formalize your quote by sending an email or fax and lay out what your conditions are: quote is based on payment in 30 days, subject to equipment availability, quote will change if freight is different than tendered and quote void if shipper/consignee or third party are house accounts, spell out your accessorial charges including fuel, if need be...AND PUT AN EXPIRY DATE ON YOUR QUOTE!
7. Monitor quote activity and call out the time wasters who habitually call and don't ship. In fact, to stop that, insist that they set up an account by sending a credit app form to them. If they are serious, they will do it and you can then use that as an advantage: you've established new business.
8. Find out why they keep calling and find out who the competition is that is beating your quotes. Anyone worth their salt will tell you. If they don't or if it sounds like bullshit, it's probably a big waste of time. Your better judgement and sense of dollars will tell you what is wrong.
9. DO NOT HABITUALLY DROP YOUR RATE OUT OF FEAR. Carriers do this and once you do it, it will be expected all the time in every negotiation once the customer "smells blood" or weakness. They will then ask for things to be removed, like certain accessorial charges and pretty soon any negotiation advantage is removed. Value your services and upsell it by showing why you charge what you do. If you have to change rates, be firm and find compromise. The idea is to find a middle or winning position, not a losing one. This also includes finding a balance if you are asked to lower one thing, ask to have something raised.
Feel free to list any companies that are time wasters who never give freight and just ask for rates, or other practices you would recommend.
We all know Pannu Transport went down the crapper recently to the surprise and applause of some (or many maybe?) and one of the things they would do is call all the time looking for rates. The rates would be good but somehow I'd always suspect they were just using them to compete without ever intending to give the freight we helped them bid on. One of the girls who used to work there, as nice as she is, called the other day and said she's at another company. She immediately asked for pricing. I told her immediately no and explained why. It was dead silent on the other end of the phone and she said ok. Pannu, unfortunately, had a habit of also wandering into our backyard talking to our clients. Thankfully, they are gone but others still exist and will follow.
However, there are others who will habitually call and who have never ever given one stick of freight - but think carriers are their unpaid rates department. For example, West Durham Transport, whoever they are, call occasionally and I have basically called her out on it and declined to quote. A brokerage in Cambridge would also expect quotes on everything and finally I said I'm not quoting shit until you pony up freight. And there's others who whore around, Traffic Tech being the most obvious and the Toronto office being the worst offender for asking for rates and then using them to compete against YOU - then make you call in for it and then expect YOU to do it for less than you quoted!
Obviously, you want to cultivate a relationship with companies and on a personal level with people who will give you freight when you need it. But you need to set guidelines.
Here's what I do whenever someone calls in for a rate, if they're not already a customer doing work:
1. Identify who it is: is it a broker, a one-man outfit, another carrier or is it a salesman from another company posing as a client? Get a call back number always. Are they anyone you've heard of? If you're like me, check the D&B/Equifax scores on Link quickly. Do they have an account set up with you? Have they ever?
2. The premise of the call: brokers will call you making it sound like they have freight but really it's a rate call in disguise. The question you have to ask is this: DO YOU HAVE THE FREIGHT NOW? If they do not and tell you (a) we're bidding it or (b) we're quoting on it, ask when they will know. If it's someone you think you want to deal with and they have something you can use, continue the call. If they don't have the freight, it's unlikely they will want to give it to you right away only because they still think they can find someone cheaper...and even then, they'll likely just put it on Link.
3. Rate callers will always ask what do you need before telling you anything more that would be of crucial importance that would impact on the rate, like tailgate delivery, bond, hazardous or handbombing. Ask them what the best rate they have and almost always they will tell you bullshit in the form of "Oh, you're the first call." More than a few people have said that and then I tell them "oh yeah? You never call with freight but I'm always the first call for rates...what's the deal with that?" Always ask for details.
4. If the freight is coming from or going to your own area or "backyard", insist on asking where it's going to and be wary. You will be amazed at how many people try to poach your own accounts. If they won't tell you (example: let's say you live in Woodstock ON - not a big town but if you have accounts in your own town or nearby and Traffic Tech is asking about freight to or from it, you best watch out) then decline to quote them until they do. You don't need to trump your own set rates and lose business.
5. Ask for the order!! Once you quote and establish a rate, tell the person asking for the qupte what the conditions are and if it's something based on you being in a specific spot today only, make them aware of it.
6. Formalize your quote by sending an email or fax and lay out what your conditions are: quote is based on payment in 30 days, subject to equipment availability, quote will change if freight is different than tendered and quote void if shipper/consignee or third party are house accounts, spell out your accessorial charges including fuel, if need be...AND PUT AN EXPIRY DATE ON YOUR QUOTE!
7. Monitor quote activity and call out the time wasters who habitually call and don't ship. In fact, to stop that, insist that they set up an account by sending a credit app form to them. If they are serious, they will do it and you can then use that as an advantage: you've established new business.
8. Find out why they keep calling and find out who the competition is that is beating your quotes. Anyone worth their salt will tell you. If they don't or if it sounds like bullshit, it's probably a big waste of time. Your better judgement and sense of dollars will tell you what is wrong.
9. DO NOT HABITUALLY DROP YOUR RATE OUT OF FEAR. Carriers do this and once you do it, it will be expected all the time in every negotiation once the customer "smells blood" or weakness. They will then ask for things to be removed, like certain accessorial charges and pretty soon any negotiation advantage is removed. Value your services and upsell it by showing why you charge what you do. If you have to change rates, be firm and find compromise. The idea is to find a middle or winning position, not a losing one. This also includes finding a balance if you are asked to lower one thing, ask to have something raised.
Feel free to list any companies that are time wasters who never give freight and just ask for rates, or other practices you would recommend.
