under bidding

[dieselpower]

I heard last night that another contractor put a bid in for 35 cents a mile cheaper than the previous contractor. The previous contractor was doing it for a dollar and something a mile now this new contractor is now doing it for cents per mile. I have heard of low balling contracts but not by that much. The previous contractor had a set price but was willing to take a little less but not by 35 cents. The previous contractor had a higher bid because he wanted to give his drivers a pay increase i guess the new one wont give many pay raises by bidding that cheap. Some people think they can under bid then ask for an increase in a few years (thats a myth) but the post office wont give it so now they are stuck with that cheap contract. I know there is always someone that can do something cheaper but lets not get crazy when doing business.
I know of a few mail contrators that have let some contracts go because they said they were not making any money. The only good thing is the post office pays for their diesel now (contractors were ripping them off with their fuel prices my company was one of them that got caught for over charging for fuel meaning they charged the p.o. 2.50 for a gallon of diesel when they would find a store that was charging 2.40 a gallon for diesel so the contractor was making money off the fuel contract.

[GMAN]

There will always be those who will undercut prices. I never try to compete on price. If you only use pricing to get business, you will only be around until someone else comes along with a cheaper price. If you sell service, you can often get a better rate. It may take more effort, but I see no need to go in and try to get business by cutting the rate.

[heavyhaulerss]

service is almost always a crucial component in generating customers. quality & serviceis key. also not to forget a good personal appearance & additude will have shippers & recievers requesting a certain driver.

[Creek Jackson]

service is almost always a crucial component in generating customers. quality & serviceis key. also not to forget a good personal appearance & additude will have shippers & recievers requesting a certain driver.

I am not doubting your statement, just wondering how often do shippers and receivers give feedback about drivers directly to the carrier? Thanks.

[heavyhaulerss]

I am not doubting your statement, just wondering how often do shippers and receivers give feedback about drivers directly to the carrier? Thanks. well after delivering a few loads from decatur al to grand rapids MI. the recievers there requested the steel mill (worhtington steel) to use the co I was leased to & preferably have me as the driver to deliver. the reason. I was always on time,always loaded the skidded coils exactly the way the forklift driver needed them to be off loaded, they were secured tight ,never no shifting of coils, always water tight & edge protected & because the co,was always busy(shipp & rec 24 hrs) they like that I got out of the dock & put away all my stuff out of the way as to let other drivers get in & out. so what was the result of my treatment to this customer & his product? it got me a dedicated to for over a year until they started using rail cars, & used other closer mills.

[heavyhaulerss]

the things I mentioned earlier are just a few reasons why service is crucial. what I mention are not hypothetical. they are actual events that really happen as stated. I'LL give a a few more. just thurs 09/11/08 while at steel tech in decatur al. a driver was in front of me to load 1 coil. 37,000 lbs. he was asked to put one chain on & pull out. all level ground. perfect weather outside. he stayed in bay for 50 minutes. put all 6 chains on, tarped & held up 7 drivers. the shipper said he will make sure that driver will not be back. this guy would throw one chain thru coil, then wipe his sweat, take a breather, e.t.c. look around, b.s. . I was told by my recievers in gr. MI, that when some other drivers would come there, some would have decks with broken boards that the fork lift drivers was afraid to offload the product. then other drivers would park in the dock & go wander to the breakroom & the rec would have to go search for the driver to get him to move the truck. I'll mention the place here.. when pridgeon & clay in g.r. M I needed a hot loaded delivered sat morn for over 2 grand plus fuel, guess who got the call ? you got it. I did. this is true. this was approx 1 year ago. I could go on about how when haulling top heavy plastic pipe to jobsites & never turning one over or arriving late,, I was in high demand & aksed for by named plenty of times. but I think my point is made.

[Cyanide]

Y'all should hear about some of the undercutting that goes on down in FL between Indian River and Bynum with some of those orange juice contracts!!!