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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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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Training Tuesday:Fact Finding

I’m a big advocate of consultative selling. But before I tell you how great I think the consultative sales approach is, I want to warn you of the negative impact this type of selling has had 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 Sunteck’s 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. Once they lighten themselves of their burdens they can better concentrate on Sunteck’s services.

Everyone is so busy that asking for someone’s time is a big request. A prospect that agrees over the phone to give you a ten-minute appointment will give you an hour in person once you establish value. One of the best ways to establish value is to show that they are important and that you recognize that fact. People love to talk about themselves, their jobs, and their companies. Encourage them to do so.

“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.

Salesperson: “We currently work with General Motors, ASW Technologies, and (use your own local examples of similar companies) in several areas to improve their service while reducing their costs! I feel there’s a good chance we can do the same thing for you, but I’m not sure yet. Do you mind if I ask you some questions?”

The prospect expects to answer questions and they’ll give you their permission to proceed.

Salesperson: “At most of the companies I’ve mentioned more than one person was involved in carrier selection. Are there any other people here that would be involved in this decision?” (If NO, proceed on. If YES, obtain their names and ask if they could also be present). Next, move on to your questions.

The following list will provide you with good examples of questions that you can adapt to your sales presentation. 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.

1. What does your company do? Manufacturing? Distribution?

2. What do you ship? In what quantities? Expedited? Air? Truckload? LTL? Intermodal?

3. What commodities do you ship?

4. Where do you ship? Intrastate? Interstate?

5. What are some of the cities you ship to?

6. How often?

7. What service level is required? To where?

8. How is your product packaged? Skidded? Banded? Loose?

9. Average weight?

10. What is the normal pick-up time? What unusual pick-up requirements do you require?

11. Are your shipments normally prepaid? Collect? If so, what percentage?

12. What are your average monthly freight transportation costs?

13. Who’s handling these shipments now?

14. How long have you used them?

15. Do you have any vendors that you receive products from on a regular basis?

16. Who chooses the carrier that handles those shipments?

17. Where are those vendors located?

18. What commodities are they?

19. What is the frequency of those shipments?

20. Who’s handling those shipments now?

21. How long have you used them?

22. What percentage of shipments is routed by your customers?

23. How do you feel about your current service?

24. How do you feel about your current pricing?

25. What would you like to change about your current carrier’s pricing?

26. What is most important to you: service, carrier stability, technology, or something else?

27. Why?

28. How do you rate carriers? How is the rating communicated to the carrier? How often?

29. What are the ratings of the carriers you use today?

30. If you could change one thing overall about your current logistics provider, what would it be?

31. Does this problem lead to… (Build up problem with multiple implications / need pay-off questions)?

32. Would you change anything else?

33. What would cause you to begin using a different 3PL or carrier?

34. What is the volume of your cargo claims? Do you experience any frequent service failures?

35. Would you be interested in our EDI capability?

 

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.

We’ve focused so much of our respective sales energies on the consultative approach that very little emphasis is placed on the sales presentation. I think this is a huge mistake. In the old days, many salespeople could care less about what the customer wanted or needed; all their energy was on the presentation. Nowadays some people in transportation have no definable presentation at all. They just go back to the customer and answer any questions or shipping requirements that surfaced in the qualifying call. I think both are hugely important—the consultative call and the presentation. Give your customer a dynamic sales presentation. He deserves it. It will make you stand out from the other freight reps.

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Training Tuesday:Sales Planning

 

Your job is to help your customer become more profitable by delivering their products to their customers on time, undamaged and for a price that is compatible with the level of service provided. You’re not selling space on a truck. You’re moving America and the world. You’re helping Sunteck’s customers by increasing their ability to better service their customers; and, best of all, you can earn great money doing it.

Work to develop your sales skills and to increase your knowledge of the transportation industry and your customer’s industry. Read more and listen better. What your customer is buying from you is increased sales and better service to their customers. The more often you can provide solutions to your customer’s transportation needs, the more frequently they will call you for assistance, the more money you’ll make, and the more money your customer will make.

You become a vital part of your client’s success when you provide them information they don’t already have. Your value increases when you help them solve problems they’re having difficulty solving themselves. You waste their time when you tell them things they already know. Resolve to prepare better for your calls and to become an asset to your clients—become one of their business “partners.”

You must establish yourself as the expert in solving shippers’ problems.
Your goal is to be an authority.

Selling is the best job in the world! Combine selling with Sunteck and you have two components that guarantee success. Professional salespeople enjoy unlimited income, freedom, and a clear means to take control of their career. Sunteck on the other hand, provides services that are needed by virtually every company in the U.S. Your profession, transportation sales, beats any other occupation hands down.

“SELLING SUNTECK” is a tremendous tool for you, the Sunteck sales professional. Use the information provided here to help distinguish you from all the other transportation sales people your client will see this year.

Your customers are better informed than ever before. The tremendous amount of information available to your clients and the speed in which they can acquire it is so fast. Thanks to the internet, it’s literally at their fingertips. From your very first contact with a prospect you must be able to demonstrate your knowledge and your successes with previous customers. You must also show an interest in their business and needs. Listen and be prepared to discuss the specific ways you have increased your current clients’ profitability through specific benefits you’ve delivered.

In a push to adopt a consultative sales approach, many transportation sales people have forgotten their number one goal – to sell something. Be aggressive. You’re in charge. Sell the Sunteck solution. Ask prospective customers what they do, how they do it, when they do it, why they do it a particular way, and how you can help them do it better.

There are three stages that complete a successful sale when selling Sunteck. To grow and maintain your successful Sunteck agency, you must master all three. They are simple and easy to learn, but due to their simplicity, they are also easy to forget or to omit.

The three distinct stages of selling that will ensure your agency’s success and growth are summed up by your focus and expertise before, during, and after “The Sell.” Each stage deserves special attention. Once you’ve mastered the time proven techniques applicable to each step in the sales process, you’ll see your revenue soar. ‘Selling Sunteck’ leads you through each stage:

  • Before ‘The Sell’ – Planning, Prospecting, Appointment Setting
  • ‘The Sell’ – Meet & Greet, The Fact Finding Session, The Sales Presentation, Overcoming Objections, Pricing, Confirming the Sale
  • After ‘The Sell’ – Handling Rejection, Referrals & Testimonials, Customer Service, Handling Problems, Handling Stress
  • Everyone has the ability to successfully sell Sunteck. ‘Selling Sunteck’ provides you with the tools you will need to achieve your sales goals. So, get started ‘Selling Sunteck’ today.

    Planning
    In the complex world of transportation sales, the game is won or lost before the salesperson even walks in the door. Preparation before the sales call is critical!

    The surgeon who performs surgery on you or a loved one studied medicine, did his internship, and is properly licensed. You wouldn’t expect him to walk into the operating room without being properly prepared. As in any profession – medicine, law, accounting, and architecture – customers deserve the same treatment from the Sunteck sales professional.

    How many times have you been confronted by a salesperson that knows nothing about you or your business? Did they launch into a barrage of “situation” questions and expect you to take the time to educate them? Or, worse yet, the salesperson doesn’t ask any questions. They jump right into their presentation on something in which you have no interest or need. Unfortunately, the salesperson that is ‘shooting from the hip’ is the norm, not the exception.

    “You have to do what others won’t to achieve what others don’t”

    The planning process is critical to the success of any sales call. The transportation industry is ever-changing and unless you keep abreast of it, you can’t properly serve your clients.

    Knowledge is power. Obviously, to successfully sell Sunteck, you should know all there is to know about Sunteck service, your industry, your competitors, and your competitors’ strengths and weaknesses. You should also take time to familiarize yourself with everything you can possibly find out about your prospective client before making your first contact with them.

    “The will to win is worthless if you do not have the will to prepare.”
    – Thane Yost

    There are many ways to be better prepared. Listed below are what I consider to be the big four.

    1. Know our industry. It’s your job to know as much as you can about the transportation industry. Know the strengths and weaknesses of the major motor carriers and major motor carriers and logistics providers. Technology is rapidly changing. New transportation services are being offered continuously.

    Successful salespeople read industry specific periodicals. You can put yourself at a distinct competitive advantage in comparison with many salespeople by becoming familiar with these publications and other regional magazines just like them. Use them to keep abreast of industry trends. Extensive and up-to-date knowledge of your industry provides your customers with greater confidence in your recommendations and ability.

    2. Know Sunteck. By having a clear, thorough understanding of Sunteck, you’ll field customer questions and objections more easily. Know your customers’ preferred buying conditions and why certain customers do not choose Sunteck as their carrier of choice. What areas need improvement? Know what is unique or value-added about Sunteck’s services. To give an honest and realistic presentation of Sunteck’s shipping solutions, you must be candidly aware of our true market position. Learn as much as possible about the history of Sunteck by talking with other Sunteck agents, members of the Agent Advisory Board, the Agent Response Team and others involved in our business. Read all company brochures, magazine articles, and Sunteck’s website. And finally, develop a written presentation about Sunteck. Use the key ideas in your sales presentations.

    3. Know your competition. Learn everything you can about your competition. Know their strengths and weaknesses and ask your customers what they like or dislike about your competitors. In what areas do they excel? What services are inefficient? What are some of their unique services? Compare Sunteck’s Service with that of your competition. Also compare features, equipment, billing processes, service levels, dispatching methods, and any other aspects of their company that makes a comparison possible. Thorough research of your competitors’ services provides you with the differentiating factors and where you can contribute to making changes that will improve your agency’s performance.

    4. Know your customer. Complete knowledge of your customer’s company will show interest, always impresses, and represents an important first step in earning a customer’s confidence and business. Do you know how your customers use Sunteck and what they demand from their carriers? Do you know their requirements for service? Survey your customers on a regular basis. Let your customers educate you on where your agency and Sunteck should be headed. Learn as much as you can about each customer before making a sales call. Well-prepared salespeople are perceived as more professional. Exhibiting an understanding of the customer’s company and business speeds the vital relationship building process.

    You must be mentally prepared before you make a sales call. The old saying You never get a second chance to make a first impression is important to remember. If this is the first call, the degree to which a salesperson can create rapport and build trust is in direct relationship to the amount of preparation that has taken place before the sales call is made. Preparation is not just limited to the first call. The result of every sales call reflects the amount of time the salesperson invested getting ready for the appointment.

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An unhappycustomer may sink your success

One unhappy customer may not seem like much, but when one customer shares a complaint, it represents the tip of an iceberg.  According to a Washington, D.C. consulting group that conducts  customer satisfaction surveys, every customer who complains is speaking for many others who feel the same way but they don’t make the time to call.  Most customers don’t complain.  It’s a well-known fact that most customers who have a bad experience are simply too busy to call and to make a complaint.  They usually just stop doing business with you.  When you don’t know, or don’t realize, that you have an unsatisfied customer, you have a problem that gets worse when that unsatisfied customer shares their negative experience with others.  And, industry surveys prove that, even though they may not tell you how upset they were by your service, they will gladly tell others.  Knowing that a customer is unhappy gives you an opportunity to remedy the situation for that customer today and to head off problems with other customers in the future.

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