Tuesday, February 23, 2010

Transportation & Logistics - 7 Proven Strategies to a 6 Figure Freight Sales Income

If I had written this article 20 years ago I probably would have been banned from this site for making false claims. I mean the Freight Industry is notorious for being one of the most uninteresting, unappealing markets to get involved in for a Sales Person. Think about it, your dealing with dirty, smelly, boring boxes and simply transporting them from one place to another. There are no cool "buzz" terms, like in high tech. There's no schmoozing, like in the Financial Industry. There are no true "huge" deals that you are going to walk into and make millions like Investing. Working in the Freight Industry truly tests a persons total sales repertoire, their intestinal fortitude, and their ability to work with any/all personality types. Once I realized this, and started devoting my time to becoming a student of the business I became enlightened by the vast opportunties that present themselves in the Industry.

What has changed in 20 years that has made the Freight Industry so profitable you might ask? Are the products that are being hauled more expensive, therefore allowing more of a profit? No! Are customers now willing to pay more money to move their products? No! Are carriers paying their Sales Representatives more money than 20 years ago? Not a significant amount more! One word answers those questions- options. The freight industry has gone through a major upheavel with the birth of the Third Party Logistic Industry. A Sales Representative working for a solid Third Party Logistics company can literally walk into a potential client and offer them 100's of options and viable choices to make their jobs easier and more efficient. If the sales rep takes it a step further, and develops pride in his trade, he can become a value-added resource to his clients. When this happens, income can soar in direct proportion with his worth to his customers.

The following are 7 strategies for maximum success in the Freight Sales industry:

Preparation

- Always, I mean always, devote time to learning your company's advantages, but more importantly, understand some basics about your potential customers industry. Customers don't have the time, nor do they enjoy having to explain their business to a sales rep- that's why we have the internet.

Versatility

- You need to be able to talk with all sorts of people. Whether it be the Warehouse person, the secretary, accounting, or a C-Level type.Having the ability to adapt at a moments notice is huge, in any Industry, but it is very important in Freight Sales. Along those same lines are having strong People Skills. Now, please note, this doesn't mean making false rapport building attempts when you walk into your contacts office. Nor does it mean being a "kiss" butt. It should be your goal to be REAL and TRUE to your clients, let them get to know YOU. If YOU is not good enough, then you have other issues that need to be dealt with (we'll discuss that later).

Integrity

- Without a doubt, this could be the TOP attribute that you will need to assist you in any Sales Industry. If you don't know what this word means, STOP reading now and get a dictionary. Can you become successful without having "Integrity"? Sure. But please believe that somewhere down the road without it, karma is sure to catch up to you. Integrity is the glue that holds together a person through those tough times in Sales. If you are doing the right thing for your customer in your heart, and can look yourself in the mirror the next day, then you should be proud, and you will be rewarded-trust me on this.

Accountability

- The Webster dictionary defines this word as, 'an obligation or willingness to accept responsibility or to account for one's actions, public officials lacking accountability.' Customers consider this one of, if not the TOP attribute that they want from a Sales Person. Remember, they don't start asking for you until something goes wrong, and this is when you get a chance to earn your money and make a statement in the eyes of the customer. Free advice. When something happens, be the person to tell your client- although they might be upset they'll respect you forever. This characteristic also incorporates the crucial ability to be able to follow up with your client when you say you will.

Self-Development

- Whether you get invovled with Freight Sales, High Tech Sales, or are a Contractor, I believe that Personal Development is without a doubt, one of the most important investments that you can make in yourself. Whether it be reading a business book, listening to motivational cd's, or meditation you need to devote time to yourself so that you can bring more to the table for your clients- they depend on you. I devote time everyday to read 15 pages from a personal development book

Have Fun

- Always take the time to enjoy what you are doing. Find humor in situations, share that with your customer, of course when appropriate. Smile, it's truly contagious, and you will separate yourself from all the grouchy Sales Reps out there who are beat down by life.

The Company

- Look for a company that is going to let you be you. As I had mentioned earlier, 3PL's are a great way to make alot of money in today's Freight world. But like anything else, it's going to depend on who you choose and what they have to offer. Consult with someone who is familiar with the Industry and who can give you a honest, nonbiased opinion. Companies that are growing, and open to expansion are always interesting to check into. Feel free to use the guidelines of this article to separate your top choices as well. I mean, companies need to have Integrity, Accountability, and many of the attributes that you have just learned. Make them prove themselves to you, and take pride in the company that you represent.

Earl White is a business owner, or as he likes to say, a LogistixPreneur. He has been in Sales for over 15 years and works with many sales reps to help them gain better footing when it comes to the elusive practice of working with clients. He enjoys being able to pass on many of the skills he has learned from Top Salesman in the Industry.

Monday, February 22, 2010

Transportation & Logistics - 10 Things Shippers Want to Look For When Selecting a Freight Carrier

The current economy has provided the Transportation Industry with an influx of new companies that are looking to try to break into Shipping Freight. These companies are smart, because they are not looking to compete with the Big Boys, like the Fedex, UPS, and Conway's of the world, but they are looking to fulfill a niche market.

They hire a cousin to be the driver, and a friend to work the books. They acquire all necessary licenses and pay the fees that need to be paid and their in business. From this point on many of them proceed to the market place to offer, not value, but cheap rates, thus dropping the Industry market value down considerably. So with this in mind, a typical shipper probably has, at the least, 15 knocks on their door from potential new shipping vendors who say they want an opportunity to bid on their Freight.

Most customers at this point take the rate sheet, or at the least, take the sales reps card to perhaps give them a quote opportunity. The issue that faces a warehouse Manager is that every sales rep that enters the door is talking about 1 thing, and one thing only- cheap rates. It's not a wonder why Warehouse Manager's are at their wits end with Sales Calls. This article consists of some general guidelines that a shipper should consider when looking to hire a freight carrier. This list is compiled from consulting with many clients in the industry, as well as several Operation Managers.

10 Areas That a Shipper Wants To Examine Prior To Hiring a Freight Company:

1) Service Commitment- Make sure to ask questions directly concerning the destinations that you ship. Often times carriers will list transit times and destinations that they might not serve directly, but may have agents working for them their. Don't get me wrong, there's nothing wrong with an Agent relationship, but this is something that you want to make sure you ask the carrier.

2) Accountability- If a carrier promises you something make sure you hold them to it...Freight is not an exact science, so many things can come into play with regards to shipping- weather, load factor, mechanical issues, the list goes on and on... Make sure carriers take ownership of their promises and guarantees.

3) Price- I list this 3rd on the list because, believe it or not, price is not as big as people want to play it out to be. You see, if your product doesn't make it's destination safely and in good transit time, it won't matter if you received a dirt cheap rate because you will have a very unhappy customer. At times customers can live with a long transit time, but those times are, few and far between, in today's market.

4) Follow Up- If the Carrier doesn't get back to you in a timely fashion, or forgets altogether, then you definitely want to reevaluate your choice of vendors. Whether it be your sales rep, or your customer service agent, poor follow up runs through the company typically.

5) Operations- Grumpy operations personnel make for poor service all around. If you ever feel as if "you are bothering your operations representatives" then you definitely need a new company. In freight you might be dealing with employees who have been in the business for over 30 years, and really don't like their jobs- they often take it out on the customer. Don't fall into this trap!

6) Technology- We are in Y2K!!! If a company is not able to provide you with online capabilities and up to date information on your shipments then this might be a sign to look for another company. Please understand, there are many shippers that prefer to have a live person than use online technology, and that's fine, but the Freight carrier needs to be able to back that up with online technology for quick reports and a more efficient Distribution system.

7) Customer Service- We've all had those bad service experiences going out to dinner with our spouse, a rude customer service operator, so I'm sure you can relate to this topic. Never settle for rudeness because of cheap rates, you'll end up regretting it in the long run-guaranteed.

8) Ease of Engagement- This speaks for itself, because it should always be easy to get a hold of your Sales Person or the Operations Team. Companies that are good in this category do things like, answer the phone within 3 rings; follow up with emails/phone calls the same day; take a proactive approach to service rather than reactive.

9) Recoverability- I coined this term a few years back. When something bad happens, the good companies get right on it and maintain solid communications with the Shipper and all necessary parties. We all know that things happen, but it's how Carriers respond and recover that make them GREAT.Often times mishaps are what help solidify a Customer-Carrier relationship- ironic.

10) Gut- More important than all of the other topics combined is to make sure you use your gut instinct. If you don't feel right about the carrier, or if you can't seem to find anything good about them other than price then you might need to take a mental note and look deep at their company because the GUT is usually right on the money.