Training Tuesday:Managing Objections

If it weren’t for objections everybody would be in sales. 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.

“Sales are contingent upon the attitude of the salesman, not the attitude of the prospect.” – W. Clement Stone

People love to buy but hate to be sold. Objections are inevitable. Not only should you expect objections, you should welcome them. You should view an objection as a positive part of the sales process. A purchasing VP who gives you an objection is listening closely. They’re considering buying your service to solve their transportation problems. And most importantly, 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.

  • “The rates are too high?”
  • “You feel your service is too slow?”
  • “You’re worried about damage?”
  • “You wish we offered next day service to Cleveland?”

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.

Clarify the objection.

  • “I’m curious why you feel that way?”
  • “Could you be more specific, please?”
  • “Do you need more information?”

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.

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.

When possible, let prospects answer their own objections. Sometimes you can stop an objection in its tracks by asking, “Could you tell me why you feel that way?” If your prospect can’t answer, then you and the prospect know the objection has little or no validity. If your prospect does answer with a more specific objection, you have a chance to eliminate it and move one step closer to the close.

Buying decisions are risky for your prospects. Choosing the wrong carrier can be harmful to the prospect’s career. Objections are the only way they have to help make sure that risk will pay off for them. If you can eliminate those objections, you’ll help provide the reassurance they need to say yes.

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Training Tuesday:Value Added Selling

There are more and more salespeople who have adopted a value-added approach to sales as a means to differentiate themselves from competitors, but few of them put a real dollar value on the value-added benefits and services they provide.

Don’t forget, all benefits are claims, which means they are largely intangible and often difficult for your customer to grasp. When presenting value-added benefits, the proof of their value is even more intangible. The customer is usually not seeking it or paying for it and may not even realize that they exist. However, identifying value-added benefits often requires a number of resources or services. A salesperson must make the value-added benefit as concrete and tangible as possible, and then present it effectively, in a way that decision-makers both understand and appreciate it.

HOW TO QUANTIFY VALUE-ADDED BENEFITS

With a bit of creativity and some number-crunching, a salesperson should be able to quantify most value-added benefits. Also, while all value-added benefits should be presented and reinforced – including benefits that are difficult to quantify, like relationships and trust – quantified benefits are more visible and leave a positive and lasting impression with the customer. Here are some pointers on quantifying these benefits.

  • Start with the value of the benefit. If the benefit cannot be measured in specific terms, try to compute the cost of the service that provides the value-added benefit. For example, your company provides its customers with a customer portal (value-added service), and while the entire transportation department at the customer location can now easily access specific shipment information in one location (invoices, POD’s, other shipment related paperwork), instead of making multiple calls to carriers to check on the status of a particular shipment, there’s no way of measuring how much this has contributed to their bottom line. However, with research you can determine that the portal, based on the number of shipments and confirmation calls required prior to offering that service, will save the customer four hours per week.
  • Measure value in bottom-line dollars. Think in terms of profit increases, reduced overhead, increased productivity, and so on. As an example, it’s more effective to say, “If you follow my inventory suggestion, you’ll be able to generate a $10,000 annual return on the space saved,” than it is to use the less effective statement, “You’ll be able to find a more productive use for the 3,000 square feet saved by the inventory reduction.”
  • Link value-added services or benefits to make a more sizable benefit. Keep this in mind when quantifying the total value-added contribution. Measure values individually but link them to increase the total amount of the benefits accruing to the customer.
  • Project the values over a longer period of time. Obviously, if a value-added benefit has a life cycle of six months or isn’t enhanced over time, you’re limited. However, if you provide ongoing benefit to the customer, you have earned the right to value it over a longer period of time. Many salespeople project value over a period of one to three years. Use common sense to choose a time period appropriate to the specific value-added benefit. For example, it’s more effective to say, “We estimate that our just-in-time service will allow you to save $8,000 a year in inventory costs,” than it is to say, “Our JIT service might help you save up to $150 per week.”

Value-added summary

1. All value-added benefits provide value to the customer, and most values can be quantified.

2. When quantifying value, the ideal method is to measure the benefit. If this can’t be done, quantify the cost of providing the service (what it costs your company to provide this benefit).

3. If more than one value-added benefit, service, or resource is involved, link them by adding or multiplying as needed.

4. To maximize the value, project the benefits over the long term.

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LTL 101:Impact of Cubic Capacity

Do you know how Cubic Capacity can affect your shipments?

Almost every carrier we utilize through our LTL platforms has a cubic capacity rule in their rules tariff that may affect any of your shipments. LTL carriers impose minimum cubic capacity rules to effectively counter very light, fluffy shipments that take up more than their fair share of a trailer.  In most cases, LTL carriers state that if a shipment consumes 750 cubic ft. of space or more, AND the shipment has a density of less than 6 pounds per cubic foot (pcf), it’s not paying its fair share.  While the rule varies dramatically amongst carriers, most artificially adjust the weight to a minimum of 6 pcf, AND apply a class of 125 or 150 to the commodities being shipped with their associated tariff rates.  Most carriers use the 750 cubic feet as the threshold, but not all. 

This week we wanted to clarify what to watch for with Cubic Capacity by providing an example from XPO:


XPO is now enforcing their standard cubic capacity rules on all tariffs. What this means is that shipments requiring 350 cubic ft. or more of the trailer with an average density of less than 3 pcf will have the weight calculated differently then what the actual weight is.

Yes that is correct, the actual weight will not matter!

350 cubic ft. of the trailer equates to approximately 5.46 linear ft. of the trailer so you can see that we are severely limited on the amount of skids of LTL we can ship when the density is below 3 pcf.

As an example, for two pallets of LTL, cubic capacity would be calculated as follows.  Please note that the carrier uses the actual height (96”) of the trailer when they look at the cubic capacity of the shipment, not the actual height that the shipment might be:

One skid = (40” x 43” x 96”) / 1726 cubic inches per cubic ft. = 95.67 cubic ft. x two skids = 193.34 cubic ft.

You can see that this falls way under the 350 cubic ft. rule so we are safe to ship this with XPO.

However, if you want to ship 4 skids, the cube of the shipment is now double at 386.68 cubic ft. which is outside of the cubic capacity limit. The only way you could ship this as an LTL shipment is if the density of the shipment was greater than 3 pcf.

Four skids with a total weight of 500 lbs., the density would be the 500 lbs. / 386.68 cubic ft. = 1.3 pcf. 

If we shipped this LTL, we would be hit with the cubic capacity rule and our cost would skyrocket.

Four skids would have to have a total weight of 1161 lbs. or greater for us to be able to ship them as a standard LTL shipment with no problems. 1161 lbs./386.68 = 3.0 pcf.
 
Below is the actual excerpt from the XPO rules tariff:

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Training Tuesday:Tailoring Your Sales Presentation

Be sure to focus your presentation – but only after you spend a considerable amount of time on the fact-finding and consultative selling components of the sales process. Thorough research and questioning should give you an idea of your prospect’s logistic problems and the solutions you can provide. Tailor your presentation to suit each individual company and focus your presentation on the benefits—not features, that you can offer. Before making the presentation ask yourself: what kind of presentation will convince the prospect to buy (analytical? logical? emotional?), then model your presentation to match them.

Know your audience. Take the time to make sure that all the important decision-makers are in attendance. When possible, be sure to include the traffic manager, purchasing manager, maintenance supervisor, VP of sales, and anybody else involved in the final decision. Include the CEO or President of the company whenever possible. Be sure you know their level of expertise about the transportation industry, your company, and their company’s shipping needs. This allows you to use terminology appropriate to the attendees’ knowledge of the transportation industry.

If you’re using printed presentation materials, make sure you have a packet or folder for everyone who will be in attendance. A printed packet can be very helpful as a selling device because it gives some tangible representation of the intangible services you are selling.

Even in your sales presentation you must remember to be a good listener. Being a good listener generates confidence and demonstrates sincerity in your desire to understand the prospect’s needs. During the fact-finding session, let the prospect talk as long as they want. It’s simply a matter of respect for the other person to let him have his say. Unfortunately, too many transportation salespeople forget to extend this basic courtesy during their sales presentation. Listening can’t be emphasized enough.

Most salespeople who are successful in our industry are strong supporters of concept selling. Consequently, each devotes a major portion of their presentation to securing agreement on the need that their particular transportation solution fills before specifically focusing on the nuts and bolts of how they move the prospect’s freight. We sell an intangible service, so we can’t actually give a demonstration (you can’t physically take the prospect along with their shipment on a truck from their dock to the consignees dock – you can only describe what happens). The product we sell is nothing more than a promise – a commitment to the customer to move his or her freight when we said we would, at a reasonable price, with no damage.

Psychologically, the most memorable parts of sales presentations are the beginning and the end, so they deserve special attention. Engage the prospect from the beginning and get to the point quickly with an imaginative opening that showcases the most important benefits of using your services. Use your conclusion to summarize the key points of your presentation. As you plan it, ask yourself what lasting impressions you want to leave your prospect with when you finish.

“It’s not your customer’s job to remember you. It’s your responsibility to make sure they don’t forget you.”

– Patricia Fripp

Practice, practice, practice. Increase your odds of closing more sales by practicing your presentations. After you’ve made sales presentations, they become practice sessions for presentations you’ll give in the future.

Collect the ideas you’d like to suggest or selling points you want to make; then organize them according to your purpose and the needs of your prospect. Give your words greater credibility by backing them up with data or testimonials. Keep your words as simple and direct as possible; use active, not passive language; and vary your tone, volume and pitch to keep the prospect interested. Illustrate your words with examples and interesting stories to add color to your presentation.

Make sure the prospect realizes that you’re an expert. When you demonstrate how much you know about your industry, you’ll gain the respect of your customers and prospects. When people believe they’re dealing with an expert it’s a lot easier to close the sale. Most customers want you to advise them. When they realize that you have a great knowledge of the transportation industry and of available carriers, then they’re happy to let you take control. You become their consultant. It’s when a salesperson doesn’t know as much about the transportation industry as his or her prospect that people resent a strong sales presentation. However, there’s no doubt that traffic and purchasing people are better informed today than they’ve ever been.

The best way to make a compelling sales presentation is by demonstrating that you’re an expert in your business as well as his. When you exemplify excellence in your sales presentation, the customer is eager to find out what you can do to offer solutions to his or her particular transportation problems.

To make the best presentation possible, you must have conviction in the services you’re there to sell. A customer instinctively knows whether you believe in your service. If you do, they in turn will believe in you. Only then can you make a sales presentation that turns into a sale every time.

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LTL 101:Volume vs Standard Loads

We have great rate engines in place to obtain quotes on standard LTL moves, but do you know when not to use a rate engine?  LTL carriers will impose limits within their tariffs (that vary with every carrier) to limit moving shipments that are too large for their network. Some carriers structure their operations to carry volume LTL shipments while others do not. Volume quotes, also known as Spot quotes, should be obtained based on the below in order for you to get the most economical rate.  

Single shipments with standard size pallets (48x40x48) that are stackable:

  • 1 – 8 pallets is best for standard LTL quotes (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
  • 9 – 10 pallets pursue a volume LTL quote or a partial TL quote
  • 11+ pallets pursue a volume LTL, partial TL, or even a TL quote 

LTL carriers will rate any single shipment up to 19,999 lbs. as LTL but it will be costly:

  • 8,000 – 10,000 lbs. shipments could be considered as partial TL’s and quoted accordingly
  • Excess of 10,000 lbs. shipments should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate

Odd size or non-stackable pallets:

  • 1 – 4 pallets is best for LTL (unless the weight exceeds 8,000 lbs., then pursue a volume LTL quote)
  • 5 – 10 pallets, pursue a volume LTL or a partial TL quote
  • 11+ pallets should always be quoted with volume LTL, partial TL, and TL to obtain the most economical rate
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Training Tuesday:Improving First Impressions

The initial approach to a prospect is the most crucial part of the sales presentation. All the selling skills in the world won’t matter if you don’t get your foot in the door. If you don’t handle the situation correctly, the first impression can be the only impression!

Up front, state your name, the company you represent and the services you’re there to sell. Try not to beat around the bush – make a strong statement like, “I’d like to share an idea with you. I’m in the transportation business. I’m assuming that you’re always looking for ideas that will help your company ship or receive goods in a way that will make your company more efficient, more service driven, and more profitable. I’d like to run some ideas by you.”

This statement is a big attention-getter and opens the door. It creates immediate interest. Of course, you then have to substantiate your statement with an excellent sales presentation.

Early in your initial meeting be sure to mention the names of several of your satisfied customers. This is done to establish credibility. It lets the prospect know that your solutions have benefited leading logistic decision-makers that came to the well-informed decision to trust you and your ideas. Make it a point to discuss other customers in their industry who are working in similar environments. When you speak about familiar customers who have found the solutions to similar shipping problems through your services, you’ll get the prospect’s immediate attention.

If you know beforehand that the prospect knows little about your company and nothing about yourself, it can pay off to send a short bio-sketch and a few magazine and newspaper articles that have featured your company. Providing something tangible to the prospect can add a new dimension to the relationship.

There are too many freight sales reps in the U.S. today to even come up with an accurate number. I think it’s important for your prospect to know about your qualifications. Tell the prospect about yourself. No grandstanding or patting yourself on the back, just an informative look at your career and the customers you’ve helped. It lets the prospect know that he’s dealing with a professional. It tells him that he’s not dealing with the run-of-the-mill freight rep. In the transportation business there are two kinds of sales people: those who add value to the client’s traffic department, and those who seem to mishandle every shipment or transaction their company is involved with (late, damaged, billed incorrectly, etc.). Let the customer know early on that you fall into the first category.

Of course, when the moment of truth arrives, you’ll have to find the best way to make a good first impression. Take into consideration the particular dynamics of your prospect’s age, position, and gender in comparison with your own. Accommodate and welcome the differences.

Every prospect will react differently to what you have to say. Some prospects will give you all the time in the world, while others believe making time for a ten minute meeting threatens a crisis. Some are skeptical, while others are freethinkers who pride themselves on being open to new ideas. The point is you can’t win everyone over with a single script designed to handle the first few minutes.

Usually there is an advantage to begin an exchange by focusing on your own observations and experiences. Doing so takes some of the pressure off of the prospect, who’ll be expecting you to try to “draw him out.”

You can always find something that will serve as a positive conversational starting point that has to do with the way your prospect has chosen to decorate his or her surroundings. It may sound corny, but it’s a fact, people say a lot about themselves in the way they decorate their offices.

First impressions are lasting impressions. By using the advice in this chapter you‘ll put the customer at ease and give them confidence in your ability to handle their demanding logistic needs. In the process, you’ll develop a lot of new customers and lasting friendships.

“The better your relationships the shorter your sales cycle and the more money you will make.”

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LTL 101:Limited Access and Price

Limited access charges were created to compensate LTL carriers for additional time spent at your shipment’s pick up or delivery locations and constraints that can result from these specific locations. Limited access is defined as meeting any of the following conditions:

  • Not open to the walk-in public during normal business hours
  • Not having personnel readily available to assist with the delivery or pickup function
  • Not having access to loading dock or platform
  • Sites where carriers are delayed with security related inspections and processes prior to freight tender

Did you know: Some of these high security locations will ask for a driver’s license and drivers have the right to refuse to do so? This causes the carrier to find a driver who is willing to do so, which in turn causes a domino effect or constraint on the daily operations of that particular terminal.   

In order to avoid unexpected charges it is best practice to ask the consignee if they have a dock or way to unload the freight and ask them if they need a liftgate for delivery. Liftgates are commonly associated with limited access and if the consignee advises they don’t need a liftgate let them know that if the driver offers a liftgate and it is used or it is signed for even though it was not used there will be an additional fee that will be charged to them.

Limited access fees can be assessed on both commercial and non-commercial delivery sites. Charges and what constitutes as a limited access will vary based on carrier, but here are some of the most common examples:

  • Camps, Carnivals, Fairs, Amusement Parks
  • Churches, Mosques, Synagogues, Temples, Convents
  • Schools (not including colleges and universities), Day-cares
  • Colleges and Universities without a dock
  • Medical/Urgent care sites without a dock
  • Prisons, Courthouses
  • Individual/ Mini Storage Units
  • Mines, Quarries, Natural Gas or Oil Fields
  • Golf Courses, Country Clubs
  • Nuclear Power Plants
  • Military Bases/Installations
  • Parks, Farms and Rural locations
  • Hotels, Motels, Retirement/Nursing Homes
  • Restaurants
  • Cemeteries
  • Construction Sites
  • Outdoor Flea Markets

Google Maps is a great tool that can be used to help explain whether or not a location has limited access. However, please keep in mind that even though the location is easy to get in and out of and they may have the necessary equipment to unload they may still be considered limited access. Some great examples of this are as follows:

  • Farms: While they are easy to get to and have equipment, they usually take the driver off his/her usual route which causes delays for the other shipments on the trailer
  • Mini Storage Units: The driver will have to use a smaller trailer with or without a liftgate and thus make fewer deliveries that day because of the space available on the trailer, so the charges are there to compensate for this
    • Carriers normally have fewer trailers with liftgates which makes this even more difficult when the volume of limited access or liftgate shipments goes up

Keep in mind: Commercial buildings with docks are normally clustered in the same area, a carrier can easily make multiple pickups or deliveries in a business park in the same time it may take to make one limited access delivery.

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Training Tuesday:Consultative Selling & Fact Finding

Consultative selling has many advantages and can be a very effective sales technique. But this type of selling can have a negative impact on some salespeople. Some sales reps visit a customer two or three times, ask them every question they can think of except the most important question of all – asking the customer to buy their service.

If on the second call you don’t ask for the shipper’s business, it then becomes a social visit and not a sales call. You can and should qualify the customer and re-visit their needs on a regular basis. If they’re qualified to buy and you don’t offer your help, then you’re doing them a disservice. On the other hand, if you keep calling on a customer who’s not qualified, you’re stealing time and money from yourself. Be sure after you’ve made a consultative sales call that you follow up by asking for their business.

Treat all your sales work as a consulting assignment. Consultative selling turns salespeople into experts and clients into partners. When you first meet the prospect take your “sell” sign down for the majority, if not all, of your first call.

The best salespeople are professional problem solvers. We’re in the business of solving transportation problems. But you have to know and understand the problem first before you try to solve it. You have to be willing to walk in the door without any preconceived notions as to how best to solve the problems identified.

Since you sell to other companies, you should consider yourself in the business of solving profitability problems. That’s the key concern you’ll ultimately be addressing – how to increase profitability. Everything you do should eventually lead to the goal of the clients’ company increasing its level of profitability. If you can’t break your sales efforts into solutions that help the customer, you’ll either base your sales on manipulating others or fail to persuade prospects that you’re offering anything of value.

On every sales call, be the student, because you really are. In real estate, they say it’s all in the location. In transportation sales it’s questions, questions, and more questions. You’ll be surprised and sometimes shocked at what a customer will tell you.

Not only is the consultative sales approach effective in finding the correct sales solutions, it’s also very helpful in eliminating people who are not potential customers, thus saving you time in the long run.

Even though it’s okay to call an initial visit with a customer a qualifying call, don’t only make the call to qualify. Make the call primarily to learn.

Sales listening is patient listening. Don’t anxiously wait for an opportunity to jump in and solve all the customer’s problems right away. After I ask a question I shut up and allow my prospect to speak. Sometimes I wait for several minutes. I don’t feel threatened by the silence. Most salespeople can’t stand a pause in the conversation. Take a deep breath, relax, and listen. Some prospects want to be listened to more than they want their problems solved. If a client or prospective client has had a bad day, let them talk about it. Don’t try to stop them.

“Pretend that everyone you meet has a sign around their neck that says MAKE ME FEEL IMPORTANT. Not only will you succeed in sales, you will succeed in life.” – Mary Kay Ash

Transportation salespeople who have been in our industry for a long time should re-visit how they qualify and maintain accounts. It’s easy to start believing that you possess all the answers. Too often we make assumptions based on outdated information. Visit accounts often and ask questions. You never know what changes might have taken place since your last call until you ask.

Take notes! Taking notes during your meeting with the prospect can be one of your most powerful sales tools. It will reinforce the reason you made the appointment in the first place: to learn more about the prospect and his company’s transportation needs.

Taking notes helps you listen. There’s something about holding an empty notepad in front of you that makes you pay better attention to what is being said. It also makes it more difficult to miss important points.

Taking notes puts you in a position of authority. You can also glance at notes and questions you prepared prior to making the sales call. Taking notes will also encourage the prospect to open up. Taking notes sends strong positive signals to the prospect. It says, “I’m listening to you. I won’t forget. I’ll use the information you’re giving me to find solutions when I get back to my office.”

It’s a fine line between asking questions that will help the prospect solve their transportation problems, and a cross-examination. Be sure your prospect feels at ease. Be natural. The consultative sale should be a comfortable two-way conversation.

Never waste the prospect’s time. That may seem like an obvious point, but many of your competitors never know when to get to business, or for that matter, even when the appointment is over. There will come a point when the customer will be ready to move past the small talk, and usually it’s quicker than you might think. Your contact, like most of us these days, is short on time. Most traffic managers, purchasing managers, and other decision-makers you call on appreciate you getting to the point. You can tactfully do this without jeopardizing the emerging relationship.

First, give the prospect a reason he or she should answer your questions. Second, make sure everyone involved in the decision-making process is present if at all possible.

Know the questions you’re going to ask before you arrive at the customer’s desk. The list below is provided to stimulate ideas that will help you customize your own list. The information you collect from the customer’s answers will increase your chances of putting together a great proposal after you’ve made the consultative sales call.

Last, but not least, be sure to wrap up the appointment by asking for the next appointment, and by getting a positive response on a trial close. It should sound like this:

Salesperson: “Mr. Smith, I’ve learned a lot here today, and I want to thank you for taking the time to talk to me. We’re at the point now where we should set up another appointment, one where I can come back after having sorted through everything I’ve learned here, and show you more about what Sunteck may be able to do for your company. Is Thursday at 2PM okay?”

Prospect: “Sure, next Thursday at 2PM will be just fine.”

Salesperson: “Great! One last question ( pause ) if you like the program I develop for you, would you be willing to give us a try?”

OR

Salesperson: “I really appreciate you taking the time to answer these questions. Based on what I just learned, I’m confident there’s a fit between our companies and that we can definitely help you solve some of your shipping problems. I’m going to make a commitment to you to develop a customized proposal, which will include my recommendations to you and your company. What I’d like in return from you is a commitment to give us a shot. Let us prove how good we are. I’m confident you’ll be very happy! Can I get that kind of commitment from you?

“Great! I’ll need about a week to get with my team back at the office and develop a package just for you. Is this time next week good for you?”

Both of these approaches let the prospect know that when you come back for your second appointment, your sale sign will go up. It prepares them to say “yes” when you come back later and ask them to buy.

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Training Tuesday:Prospecting Tips

No matter what you have scheduled for any particular day there is one part of your job you should do every day – prospecting. There are no sales without customers and there are no customers without frequent prospecting. To keep your trucks full of freight, you have to keep prospects in your pipeline. Set a daily or weekly minimum number of cold calls or prospecting contacts for yourself – your success depends on it.

There are many resources that cover the best ways to be successful in prospecting, and some of our top tips are below:

1. Talk to and develop relationships with everyone you meet in your industry. Make sure your competitors know you and what you do. Share information. Never give away company secrets, but sometimes you can help each other achieve goals and gain new business you might not have uncovered without the others help. These relationships with other salespeople can help you better adapt your selling techniques, and help you handle rejections more easily.

2. Join clubs and organizations. You never know where your next big shipper will come from. Focus on developing and practicing your networking skills – the most powerful business tool. Mastering networking is the difference between a mediocre and magnificent career.

3. Subscribe to industry publications. Read your local newspapers, business publications, and national publications. There are many online resources and articles that will provide excellent industry insight.

4. Attend trade shows and seminars. Those that are aimed at trucking and freight, as well as major tradeshows that are specific to certain industries, are a great place to start. Give speeches every chance you get. Don’t sell from the podium. However, speaking will help with positioning yourself as an industry expert will benefit you in the long run.

5. Surround yourself with successful people. It’s the best way to learn how to be successful.

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LTL 101:Density Based Rules & Price

Density is very important in selecting freight class. One carrier that rates solely on density of an item is Central Transport. Some carriers will rate based on density if the commodities’ National Motor Freight Classification (NMFC) is a density based item. Three carriers that do this are Midwest Motor Express, UPS, and Saia.

With these NMFC density based rating carriers the general rule is anything under 48 inches high will be calculated as 48 inches and anything over 48 inches but under 96 inches will be calculated as 96 inches for density purposes. 

Please see the actual wording from one of the carrier’s rules tariff below:

So how could this affect your shipment?
Say you were shipping 1 pallet of sheet steel, or NMFC 175120, which is a density based item.

  • The dimensions are 144” L x 45” W x 18” H
  • The total weight is 550lbs.
  • This equates to 8.1 PCF & Class 100
  • In turn, sub 6 would be selected for this NMFC (175120-6)

However, if you changes the dimensions based on the carrier’s rules tariff above, you now have the following:

  • The dimensions are 144” L x 45” W x 48” H
  • The total weight is 550lbs.
  • This equates to 3.1 PCF & Class 250
  • In turn, sub 3 would be selected for this NMFC (175120-3)

Due to the higher class of freight, the price will go up substantially!

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