QUOTING ON LOW PROFIT BUSINESS
We are all familiar with Einstein’s famous definition of insanity: Doing the same thing repeatedly and expecting a different result.
I think it’s always a good idea to check and see if we are insane, occasionally.
Quoting for forwarding business day in and day out might very well fit here. If you are quoting lots of rates to lots of forwarders, you certainly get to stay busy, but are you getting ahead? We’ve all experienced quoting on the same business to several different forwarders. And, since price is the key determinant 90% of the time, it would follow that winning the business, means winning low margin business. But are you getting ahead?
Do you know how much it costs you to generate these quotes?
And, since you do not win them all, how does the cost of all the time spent quoting impact your profitability on the low profit business you do win?
What is the cost of tying up your operations staff with low margin business, when there are pressing demands from better clients?
In the end, does quoting business really build anything long term, other than the ongoing activity of quoting?
Instead of just pricing shipments, why not build long term business with trusted partners?
Building business is a much different process, but in the end, it usually means more profit and a steadier revenue stream. So, what does it take to build business?
Well, it takes two to tango. You need to have a corresponding partner who wants to build business as well. In other words, you need to both value this effort the same. To be effective, both parties need to be well established, high quality companies with a commitment to the process.
And, just as importantly, instead of spending time quoting, you need to spend time building up your relationships with these quality companies. Seventeen plus years ago, we founded our networks on the principle that GOOD RELATIONSHIPS, with GOOD COMPANIES builds GOOD BUSINESS. And, over this time, no one has disagreed with this truth. We have created the ideal environment: pre-qualifying agents to a higher standard, checked references, and distilled the background information into simple, searchable profiles. We even have made it possible to make fellow members discoverable by various niche services, so you can connect with agents involved in the same kind of business you are focused on, or interested in. All of these benefits of network membership save you time and cost and reduces risk while you utilize your resources and attention where it is best used: building up new business worldwide.
If you are interested in learning more about what it takes to build profitable long term partnerships with great companies, we recommend that you contact us for more information: firstname.lastname@example.org or check out our blog post, Building Good Relationships