Why a Bargain Hunter Never Finds the Lowest Price in Reality or Why Loyalty Matters

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.

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!

• Reduced Operational Costs

Collaboration with a trusted and reliable carrier simplifies procurement, accounting, and logistics processes. The client doesn’t need to spend resources searching for a new supplier, verifying their reliability, negotiating, and signing new contracts.

• Stable Quality and Predictability

Long-term relationships with a carrier who is already familiar with the client’s requirements increase confidence in service quality and delivery reliability. This minimizes risks and allows the client to plan operations more effectively.

• Personalized Approach and Priority Service

Loyal clients often receive more flexible service terms, such as faster responses to inquiries, personalized communication with a dedicated manager, and priority support in urgent situations.

• Special Conditions and Discounts

In long-term partnerships, logistics companies can offer loyal clients more favorable terms — discounts, deferred payments, or bonus programs. This helps clients reduce procurement costs and positively affects their financial performance.

• Access to New Services and Innovations

Loyal clients often gain early access to new technologies and improved services, providing them with a competitive edge. Partners may involve these clients in testing innovations, considering their feedback, and offering them the best solutions.

• Increased Flexibility in Terms

In relationships with regular clients, carriers are willing to adapt, for example, to delivery schedules, special contract terms, etc. This gives the client more opportunities to tailor logistics to their current needs.

• Opportunity for Strategic Partnership

Long-term relationships allow clients and freight companies to build strategic partnerships aimed at achieving mutual goals. For example, a carrier may help a client optimize processes, enter new markets, or simply enhance efficiency.

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.