In any human relationship, loyalty plays an important role. This also applies to economic cooperation, where human relationships between a seller and a buyer often become the key factor. However, there are objective reasons that favor long-term collaboration with a trusted and loyal partner over a constant hunt for the lowest price.
Here’s a simple example from daily work that answers the headline question:
Emails frequently arrive with so-called price inquiries for transporting goods from point A to point B. The requester expects the lowest price from all the service providers to whom the inquiry was sent. At first glance, this seems logical and straightforward, but...
How does this look from the perspective of a transport company or a carrier?
A service is not a product already sitting in a warehouse with a known and fixed cost, which remains constant both at the time of production and during its sale.
In logistics, conditions are constantly changing, including both objective factors (fuel prices, driver wages, licenses, road tolls, insurance, depreciation, etc.) and subjective ones related to specific circumstances (seasonal fluctuations in freight flows, regional transportation peculiarities, vehicle availability, and location at a given moment, among many others).
As a result, the process of calculating the cost is often far from simple or quick. In a situation where the carrier has reasonable doubts about being awarded the transportation job, a transport manager will typically not "go out of their way" to process such a request or calculate the most competitive price. Instead, they might propose a price with an added "buffer." Consequently, the client receives prices that are not necessarily the most advantageous in that particular situation.
For example, price proposals for a delivery might range from €150, €175, and €200, and the client chooses the cheapest one. However, there’s a significant chance that the market price for such a delivery is €125. Thus, from an outside perspective, it becomes clear that the service was booked at the lowest price from the proposals provided, but not at the actual market rate.
On the other hand, a loyal and long-term client is usually offered a price closer to the market level, if not the absolute lowest theoretical price. This ensures that the client doesn’t overpay significantly.
However, it’s also important to remember other factors that positively impact the quality of services provided to loyal clients in the logistics sector.
A client who regularly uses freight services is, of course, much more important to a carrier than one who contacts them once a year. This principle holds true for B2B relationships as well as any other industry, and it’s entirely logical.
Naturally, in the context of LATCARRIER, this does not mean that we treat any client with less attention. We believe every client today has the potential to become a loyal one!
How does this look from the perspective of a transport company or a carrier?
A service is not a product already sitting in a warehouse with a known and fixed cost, which remains constant both at the time of production and during its sale.
In logistics, conditions are constantly changing, including both objective factors (fuel prices, driver wages, licenses, road tolls, insurance, depreciation, etc.) and subjective ones related to specific circumstances (seasonal fluctuations in freight flows, regional transportation peculiarities, vehicle availability, and location at a given moment, among many others).
As a result, the process of calculating the cost is often far from simple or quick. In a situation where the carrier has reasonable doubts about being awarded the transportation job, a transport manager will typically not "go out of their way" to process such a request or calculate the most competitive price. Instead, they might propose a price with an added "buffer." Consequently, the client receives prices that are not necessarily the most advantageous in that particular situation.
For example, price proposals for a delivery might range from €150, €175, and €200, and the client chooses the cheapest one. However, there’s a significant chance that the market price for such a delivery is €125. Thus, from an outside perspective, it becomes clear that the service was booked at the lowest price from the proposals provided, but not at the actual market rate.
On the other hand, a loyal and long-term client is usually offered a price closer to the market level, if not the absolute lowest theoretical price. This ensures that the client doesn’t overpay significantly.
However, it’s also important to remember other factors that positively impact the quality of services provided to loyal clients in the logistics sector.
A client who regularly uses freight services is, of course, much more important to a carrier than one who contacts them once a year. This principle holds true for B2B relationships as well as any other industry, and it’s entirely logical.
Naturally, in the context of LATCARRIER, this does not mean that we treat any client with less attention. We believe every client today has the potential to become a loyal one!
Here are several important aspects that benefit cooperation and provide significant advantages for loyal clients:
- Reduced Operational Costs
- Stable Quality and Predictability
- Personalized Approach and Priority Service
- Special Conditions and Discounts
- Access to New Services and Innovations
- Increased Flexibility in Terms
- Opportunity for Strategic Partnership
Loyalty in B2B logistics is mutually beneficial: it offers clients stability and the advantages mentioned above, while providing carriers with consistent demand, optimized operations, and opportunities for growth.
