“I have got the best UPS rates in Manhattan.”
“My FedEx rates are better than anyone in my industry.”
“Nobody can get better DHL international rates than I can.”
“The Vice President of FedEx came to our warehouse and said he couldn’t compete with the rates we are getting from UPS.”
“I saw General Motor’s rates and ours were better.”
“I hired a professional parcel negotiator and he couldn’t do any better. In fact, he asked me if I would negotiate rates for his customers.”
“My UPS rates are better than the Federal Government.”
The above statements are ones that I have heard. The people stating them honestly believe them. Do you?
Over the past 30+ years in this industry, I have made friends with many former FedEx and UPS sales people, pricing managers, and executives.
Here is a secret.
The carrier sales people are trained in negotiation strategies and one tactic is to get you to believe that you already have the best rates.
I found an interesting site where I learned about various negotiation tactics, one of them is called Flattery.
This tactic involves making you look good by telling you how clever and intelligent you are. For example, what a great negotiator you are. It makes you feel good about yourself and puts you in a position where you will want to be a friend with them.
I have heard those lines too.
“My UPS rep is my friend; I couldn’t possibly ask him for more.”
“My FedEx rep is the greatest and really went to bat for me.”
You may indeed be friends with your carrier representatives but are you really getting the best rates possible?
How do you know?
Are you 100% confident that you couldn’t do any better?
And, if you could, let’s say even reduce your shipping costs by 10%, what impact would that have on your organization?
Could you compete more effectively?
UPS did last quarter; they tripled to their profits and reported a fourth-quarter net income of $757 million dollars.
How did you do in comparison?