Mastery of a Lost Art – The RFP

A Shallow Abyss

If you are a small to medium sized business that has ever worked with a freight broker then you have seen the phenomenon of buying power first hand. Think of a freight broker like a discount wholesaler pooling together thousands of customers to achieve pricing nirvana.

When a carrier extends discounted pricing to one of their partner brokers, they are essentially welcoming a mixed bag of customers and freight. Laying hidden within this grab bag are land mines waiting to blow carriers hard earned profits to pieces.

To mitigate this scenario, carriers use conservative general pricing programs as filters who’s purpose is to keep the poorly operating accounts at profitable levels or out of their system altogether. The main drawback is that it sometimes keeps out very attractive freight which could have been a mutual benefit for the carrier and shipper.

Roman or Roamin’

If you have ever received pricing directly from a carrier you probably found out very quickly if your freight was destined for the wood pile or worthy of a gladiator duel.

In simple terms, your freight represents a profit/loss scenario for each individual carrier. That single pallet of yours could play nicely with the other pallets on their truck. It is also possible your basketball hoop & flagpoles are getting some spacious first class treatment since a carrier cannot put anything else in the truck.

If you feel that your freight is stuck in the pricing dungeon while your competitors are ribbon dancing through golden fields, then you should seriously consider a Request for Proposal (RFP) as your main option. RFP’s are generally very much welcomed by carriers as it gives them a chance to aggressively price accounts that fit their needs.

Fly Like a Penguin

Carriers encourage RFP’s because not only does it take the guessing out of how the freight will operate, but it also allows them to zero in on components that directly effect profitability such as:

  • Freight Dimensions/Density
  • Handling
  • Stowability
  • Liability
  • Length of Haul
  • Monthly Freight Spend<

Mirror, Mirror

Take a look at the factors above and give your freight an unbiased assessment. If you are shipping nicely packaged bricks on a standard pallet, you can expect to receive more competitive rates than a standard program. If you are shipping loose ping-pong balls you will face an uphill climb to receive the same rates. However, our years of experience in the RFP negotiation process has enabled us to secure the best possible rates that your freight deserves.

If you do not know the first thing about assembling an RFP or have no desire to, we offer all of our customers full RFP assessment and carrier submittal completely free. Consider it a welcome gift from us to begin a great partnership.

Call or email us today for a free freight analysis and allow us to show you why it is time to “Change Direction”.  rates@pivotfreight.com | 602-842-2788