Intermodal 101:Rates

Intermodal 101: Rates

Use of rail controlled, door to door offerings have some positive and negative components to consider. It is important to contemplate them when trying to determine if this option for intermodal shipping fits your needs.  This product offering has been beneficial to the railroads and doesn’t show signs of changing, but to understand why it is good for the railroad, it is important to understand the dynamics that lead to this service.  This post will discuss one of the major contributing factors – rates.

Historically, the rails went to market through a controlled network of 3rd Party Logistics (3PL) companies who held contracts with the rails to sell their service in a ramp to ramp environment.  The 3PLs who held these contracts are known as Intermodal Marketing Companies (IMCs).

It was the job of the IMC to coordinate the origin drayage, rail linehaul and the destination drayage, to put together a complete move from origin to destination.  This allowed the IMC to consider different rails and different drayage firms to arrive at the solution the customer was looking for – whether that was speed, ride quality, lower rates, etc.

This method relied on contracted rates between the rail providers and the IMC’s.  It may be Freight All Kinds (FAK) rates that are basically the same across all IMCs or Special Pricing Quotes (SPQs) that are put in place for a specific Beneficial Cargo Owner (BCO).

As railroad consolidation began to pick up steam, the rails decided to limit the number of IMCs they would allow.  Each IMC that had a contract in place could continue moving freight with the rail on a ramp to ramp basis.   This was an advantage for the IMC community, but was a restrictor to the railroads and their efforts to grow.

Going hand in hand with rates is equipment supply, which we will discuss in our next post.

 

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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Training Tuesday:Asking for Referrals

Training Tuesday: Asking for Customer Referrals

Referrals are the easiest sales you’ll make. It’s your job to tell a purchasing manager that SunteckTTS offers the best service available; that’s what he expects you to say. But when he hears it from a fellow purchasing manager then that’s something entirely different.

Always ask for referrals! Asking for referrals is the difference between middle-of-the-pack sales agents and star performers. And yet sales agents are usually terrified to ask for referrals. Don’t be timid. Always start by asking for referrals within their own company, on-site and at different locations. Then, branch out and ask for referrals to businesses in the area where they might know a decision-maker.

When asking for a referral, try and get this information: company name, contact name, new contact’s title, what they ship, address, telephone number, and how your client is acquainted with the referral. You should also ask permission to use their name when making the call.

Ask every prospect you meet for referrals, and ask every satisfied customer for a testimonial letter. If they don’t have time, offer to type up their comments and then get their signature. You’ve got nothing to lose and everything to gain – ALWAYS ASK!

Using referrals and testimonials in your presentations and qualifying calls sends and reinforces the message that it’s a good business decision to trust you and SunteckTTS. Others have trusted you with good results.

People like working with a winner. In many ways it makes them feel like a winner too. When you demonstrate your successes you make the customer more comfortable with their decision to buy from SunteckTTS.

Repeat business and referrals are the two biggest keys to long-term success in transportation sales.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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LTL 101:PODs and Additional Services Charges

LTL 101: PODs and Additional Services Charges

The last blog discussed educating shippers to ensure the BOL is set up correctly and to avoid a possible dispute with the carrier regarding the invoice. This week is discussing educating consignees so they know what to expect at the time of delivery.

It is very important to educate your consignee BEFORE the freight is delivered about what the process will be like. Will they need a liftgate? Will the driver be helping unload the freight in any form or manner? By asking these questions in advance, and by making sure that you are on the same page as the consignee, you can minimize additional charges on the invoice.

On the delivery receipt/proof of delivery (POD), issues should be noted if you suspect that the value of the product has been compromised. Make sure to note any damage to the packaging, and/or missing product. Having these notes on the POD makes it easier to file a freight claim with the carrier if necessary.

Another tactic you can take is refusing a shipment if there is damage; this means that the consignee does not accept the freight in the condition presented – meaning you will eventually file a damage claim. This will alert the carrier that something is wrong with the shipment and that they should get in touch with the appropriate party. Make sure you use this tactic responsibly and honestly, because if a shipment is not damaged the carrier can tack on a redelivery fee. Yikes!
Five of the most common additional services on a POD include:

  1. Lift Gate – Hydraulic lift on the rear of a truck used to assist in the unloading of freight.
  2. Inside Delivery – The driver is only responsible for moving the freight off the truck. If the driver helps move the freight more than a few feet away from the truck, even if it’s not “inside,” then an Inside Delivery fee may apply. Be very careful with this one because the terminology can be misleading and it varies by carrier.
  3. Limited Access (Residential) – This is up to the carrier’s discretion, however, there are locations that will always be deemed limited access.
  4. Sort/Segregate – Certain locations may require a carrier to sort and segregate a shipment. This is additional handling beyond the normal duties of a driver that will incur additional fee(s).
  5. Detention – With most LTL carriers, the first 30 minutes from when the driver arrives are free. Any additional time is subject to an additional detention fee.

 

So the next time you sign a POD when receiving your shipment, be sure to review it and see if any additional services listed are being used. Services can be pre-printed or added to the POD by a driver, and the additional charges may vary. In some cases, it may be good practice to have your consignee obtain a copy of the POD themselves.

 

Check back every 2nd and 4th Wednesday each month for more inside information on LTL through our Multimodal Wednesday Series.

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Training Tuesday:Handling Rejection

Training Tuesday: Handling Rejection

Rejection is a daily occurrence in the sales profession. You’re going to be rejected.  How quickly and how well you recover will determine how successful your next sales call will be. If you are not careful, a rejection mishandled can lead to several more rejections.

The best SunteckTTS sales reps get rejected, maybe not as often as some, but it still happens.  Learn to accept rejection as an occupational hazard and move on.  One of the biggest mistakes a salesperson can make is to get rejected and never go back.  Don’t close the door on a client forever after receiving just one rejection.  People are more likely to give you their business if they know you really want it.  Stay in touch and demonstrate your professionalism.

75% of all salespeople quit after the first NO, another 5% quit after the second NO, and only 20% persist until the third NO. It’s not surprising that 20% of salespeople make 80% of all sales.

Persistence and proper handling of rejection will allow you the opportunity to overcome this rejection and make sales in the future.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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Intermodal 101:Door to Door Rail

Intermodal 101: Door to Door Rail

For people who have not shipped via Intermodal in the past, utilizing rail controlled, door to door offerings can be an effective way to familiarize yourself with it.

Typically, an Intermodal shipment requires coordination of a drayman to handle the pickup, a railroad to move the shipment from origin ramp to destination ramp and another drayman to handle the delivery to the consignee.  This type of shipping usually results in an affordable transportation option for the shipper, though it can be daunting for a shipper. If the shipper lacks experience, coordinating these pieces can feel too risky to justify adding intermodal into their shipping process. In this case, the railroads have another option.

One of the options a shipper might utilize is “Door to Door” shipping on the railroads.  This option allows a shipper some of the advantages of shipping Intermodal, but the rail company is responsible for coordinating the details. The shipper is responsible for dispatching one party, the same as they do for an over-the- road (OTR) shipment.  There are several reasons that a shipper might find this advantageous.

First, the shippers’ operational system already allows them to set up a shipment with one carrier and one party to pay. A “Door to Door” shipment with the rail is a natural fit for that system, because it is only one party to pay.

Secondly, using “Door to Door” simplifies the monitoring of authority and insurance requirements to one party.

Finally, “Door to Door” reduces complications in accessing intermodal equipment, as the railroads have access to empty equipment from loads moving into the area a shipper is looking to ship from.

In the next installment, we will discuss more of the benefits and drawbacks of using the railroad “Door to Door” products.

 

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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Training Tuesday:Confirming the Sale

Training Tuesday: How to Confirm the Sale

There’s no magic to confirming the sale.  Right from the initial approach to the very end of your presentation, bit by bit, you should be confirming the sale. Relatively early in the presentation I let the prospect know that I expect him or her to make a decision at the close of my presentation. I go with my instincts.  I close the sale when my customer lets me know it’s time.  Closing or confirming the sale is the most natural thing about selling.

You have to have complete confidence in your ability to close the sale, if not, the prospect becomes consumed with doubt.  The prospect can sense when it’s time for you to confirm the sale, and it’s up to you to ask for the order.  They knew you were a salesperson when they agreed to see you, and if you lack confidence to ask for their business, they’re going to lack confidence in making a decision.  Hesitation is as contagious as confidence.

Your sales presentation should be smooth.  The close should have a rhythmic flow that naturally blends in with your proposal so that the prospect is unaware of a precise moment when he can think, ‘Ah, now he’s putting pressure on me to buy.’ Pressure selling is outdated and counterproductive.

The longer a customer has to think it over, the lower the odds become that you’ll make the sale.  I go with the odds and always make a strong attempt to close the sale while eye to eye with the prospect.

Do not oversell!  Some salespeople enjoy a successful close so much that they want to hear it again – even if it re-opens the door to a “NO.”  When the customer says yes – you should SHUT UP!  The sales pitch is now over.  You and the customer are now business partners.  Learn to take YES for an answer.

Be a closer (confirmer).  Your main objective is to get new business.  At the end of the presentation, a real sales professional will confirm with their prospect that they’ve done a good job.  That confirmation will come in the form of a sale.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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LTL 101:Weight, Size, and Freight Classification

LTL 101: Weight, Size, and Freight Classification

The last installment discussed the importance of keeping BOLs clean and precise so that there are no issues with shipments while in transit or with billing. This week will discuss educating shippers in order to ensure the BOL is set up correctly and to avoid a possible dispute with the carrier regarding our invoice.

Did you know LTL carriers employ “weight & inspection coordinators” whose sole responsibility is to catch the “bad guys” who list an inaccurate weight or class on their BOL?

  • They keep an eye out for any shipments whose description on the BOL doesn’t seem to match up with its appearance.
  • They will physically examine the freight, and if they deem it necessary to inspect the contents or check the weight, they’ll issue an inspection certificate.
  • You will foot the bill for the additional inspection.

It is for this reason it is important to make sure shippers understand the following:

  • It is imperative to make sure the weight and class on the BOL are accurate.
  • Don’t just guess, and don’t try to be sneaky, either! Furniture can’t be classified as lumber, even though it was once lumber… (Yes, believe it or not, people actually try this!)
  • Include the weight of the pallets in the total weight calculation of the shipment.
  • If multiple pallets are forgotten, they could add up to an additional 500 pounds or more; that’s not just a few pounds off.
  • Most LTL carriers have scales installed right on their forklifts that double-check the weight listed on the BOL automatically.
  • Make sure to measure the freight with extreme accuracy (to the nearest inch)
  • Some LTL carriers make it mandatory for drivers to carry a tape measure and measure the freight at the time of pick up.
  • A couple of inches can add up to hundreds of dollars when classifying freight.
  • Shippers who misrepresent freight need to understand carriers are not taking any more chances and the time to do the right thing is now!

 

Check back every 2nd and 4th Wednesday each month for more inside information on LTL through our Multimodal Wednesday Series.

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Training Tuesday:How to Take Control of the Sale

Training Tuesday: How to Take Control

Take control of the sales call, especially on the subject of price. If you can change the customers pre-conceived notions in the first five or ten minutes, then you’ve won the biggest sales battle of all.  I quickly and firmly set up an alternative framework for making a deal.  If price isn’t going to be the issue, then what is?  You must sell value-added.

Never concede that SunteckTTS’s service is just like our competitors.  Once you do, you give away your competitive edge and ability to differentiate your service, and therefore, to receive a higher price. The job of all SunteckTTS sales agents is to know how and why our service is different, why that difference is important to the customer, and how to effectively communicate the importance of those differences.

When the customer tells you that they can get the exact same service by using a competitor, the first thought you should have is: Can they really get the same service?  Your customer is receiving services that are similar but not identical.  Sometimes these slight differences in service levels won’t matter, but often they will.  It’s your job to point out why the slight differences matter. A customer can’t argue with success.   

Be sure to emphasize how SunteckTTS’s service will help them, their company, and their customers.  Be as persistent as your customer.

What if the prospect looks you straight in the eye and firmly says, “I don’t have time to listen to your whole sales pitch.  I know all about SunteckTTS.  Just give me my discount.”  Some traffic managers use this tactic to unnerve you into giving them a big discount at the onset.  The main purpose is to take control of the sales call away from you.  Turn around and use the same technique. Take control and do your job.  Don’t let the prospect plow you over.

Treat your customers fairly and expect them to treat you the same way.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

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Intermodal 101:Load Securement

Intermodal 101: The Importance of Load Securement

We have discussed several main reasons for shipping via intermodal previously, but there are also a few areas of concern that you should be aware of before shipping with intermodal.

As you know, intermodal involves loading a trailer or container at a shipping point, and unloading that trailer or container at the consignee.  Obviously though, intermodal has some level of rail service between these events.  That challenges your shipment will face must be accounted for prior to tending a shipment for intermodal service.

First, there must be greater load securement when shipping via intermodal.  Though the actual transit on the rail is typically much smoother than transit over the road, the trailer or container must be loaded onto the flatcar to get it moving.  This typically involves a crane, which picks the unit off the chassis and places it on the flatcar, later it is removed from the flat car in the same fashion and loaded back on a chassis for delivery.  These movements place increased demand on the securement of the lading in your shipment that are not necessarily evident in over the road service.  Crane service is the direction everything is heading right now, though there are still some older methods of loading flatcars that place even greater stress on securement devices than the crane service does.

To mitigate this, each rail has guides on their website on how to properly secure your shipment.  They will also be happy to speak with you on the phone, via email, or even come for a visit to make sure your shipment will travel as securely as possible.  You must take the time to get load securement done correctly to be able to enjoy the many benefits that intermodal shipping provides.

In our next installment, we will discuss transit times and how you might be able to find a couple of extra days within the transit of a shipment to make the extended time more palatable.

 

Check in on the 1st and 3rd Wednesday of every month for more information on intermodal and how it can benefit you!

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Training Tuesday:Overcoming Objections

Training Tuesday: How to Overcome Objections

If it weren’t for objections everybody would be in sales. So, while none of us likes objections, we must accept them as part of the business and make sure we know how to overcome them.

Your main goal when faced with an objection is to turn the objection around into a reason to purchase our service.

People love to buy but hate to be sold. Objections are inevitable. Not only should you expect objections, I think you should welcome them.  An objection is a positive part of the sales process. Their objection gives you an opportunity to answer the objection and add one more good reason why they should buy from you now.

Expect objections, but never create them. Prepare a list of the top ten objections your customers and prospects have had with all their motor carriers in the past and then prepare two or three appropriate responses to answer each one.

When faced with an objection, first restate the question or statement. Clarify the objection.

Give the prospect an opportunity to confirm your understanding of his objection, and hopefully your prospective client will give additional reasons for his or her objection.

After you’ve re-stated the question, and clarified the objection, and you’re sure you understand the objection fully, then answer it.  Don’t just handle your customer’s objections, instead answer them. Answer the objection head on, honestly, simply, and succinctly.  Handle objections early and often. A direct approach to handling objection guarantees greater sales results.

Remember this is not a contest. Nobody should win or lose. This should be a conversation where two people are answering questions and gathering information.

 

Check back next Tuesday for more tips on Selling SunteckTTS. The full playlist of videos can be found on our YouTube channel.

 

 

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