Everybody’s promise is the same… lower prices, better service.
But when it comes down to truly understanding the costs and elements that go into your freight quotes and service, nearly every 3PL provider and broker would rather keep you in the dark.
At Vestra Logistics, we believe that just because things are done a certain way, does not mean that it is the best way… and when it comes to pricing and adding value to the shipper, Vestra has discovered there are questions that have gone unanswered… let alone even broached.
These questions require a level of transparency that Transportation Providers are seriously unprepared to answer and are praying you never ask.
1.How did you come to the fixed rate calculation you provided?
a.Is there a 3rd party indicator that you use plus a set margin?
2. What happens if you get a price break from your carrier?
a.Do I see any of those price breaks during the fixed rate period?
3. What happens if your trusted and selected carrier starts charging you more than the stated fixed price for the lane?
a.Do I end up paying more or do I have to settle with a lesser experienced and lower rated carrier?
4. Will you share what you pay the trucker with me?
a.Can you provide me with the actual invoice?
5. What is the margin you use to quote my lanes?
a.Can you provide me with a cost-plus program that defines your margin?
6. Would you be willing to provide me with a Cost Buildup that determines your pricing and margin?
7. If your carrier cost and set margin come out to be less than you charge me, do I see any benefit?
From time to time, Transportation Providers feel the pinch of aggressive pricing from their competitors. This can lead to a sudden adjustment of your fixed rate for a particular lane or set of lanes. We think this prompts a new set of questions…
8. What were the calculations you used to determine this new price?
9. If you are able to reduce your price now, how far would you be willing to go back to provide a rebate for the difference of this new price and what you were charging me?
When it comes to your bottom line, it is important to know where you stand…
10. Can we have a monthly report that details your costs and relative margins so we can determine if a rebate is appropriate and or an adjustment to my fixed cost?
Vestra also believes that cost/pricing benefit is just a single element of a strong and enduring relationship, which prompts additional inquiry…
To many 3PL Providers, these questions can cause a bit of anxiety. Many will either refuse to answer or change the subject all together.
At Vestra, we are eager to answer these questions for you and provide you with a unique, simple and groundbreaking program that is founded in total transparency which serves as the basis of a long and mutually beneficial relationship.
Watch this video to learn more about Transparent Pricing. Then, see how Transparent Pricing affected Jeff’s seafood business: http://jeffsstory.pagedemo.co/
Contact Vestra CEO, Steve Docalavich, at 844-7VESTRA ext 3 or email him at firstname.lastname@example.org.