Fleet Owners: Just Say No to These Freight Customers

Way back in the early 1900s, a department store owner in London came up with the motto “ The Customer is Always Right.” That’s a perfectly good saying when applied broadly as a way to be sure that a vendor pays attention when issues of service come up. But any businessperson can (and will) rattle off a list of times when they know for a fact that the customer was wrong.

Most of the time a single incident can be resolved, and regular but minor annoyances can be ignored. But sometimes the customer is so wrong, so often, that working with them actually turns into a liability.

It’s tough for any trucking company to turn away business, especially during lean periods. However, these three customer types can make that decision a little easier for even the most forgiving of fleet owners.

Customer Who Promises the Check is On the Way

That moment of sweet victory in landing a customer who pays a premium rate turns sour when the payment doesn’t come through. They have lots of valid excuses for the delay:

• “A computer screw-up that’s fixed now, but it will still take a few weeks to process the invoice.”
• “The payment is going out tomorrow – absolutely.”
• “What, you haven’t received payment? That’s unacceptable. I’m going over to fix this right now.”
• “We never received paperwork” or  “we are missing paperwork” (yet this was never communicated with anyone).

You hang on because: It’s good money. You’ve done business with them before and eventually they will pay, you are certain of it. They are a successful company, so you are confident they are able to pay on time, at some point in the future.

But, consider this: Actions tell the real story – zero dollars per mile is not a premium rate.

Best avoidance technique: Fleets need to work with reliable, financially solvent shippers and brokers, and one of the best ways to do that is with a credit check before accepting a job.

Customer Who Makes Everyone Miserable

No interaction goes smoothly because, according to this person, your company does everything wrong. They treat your drivers poorly. They conduct all conversations with your staff as if they are speaking to an idiot. They yell and scream until they get their way.

You hang on because: They actually pay on time. This job could lead to others. They are a prestige client.

But, consider this: A client who constantly criticizes your company to your face is almost certainly criticizing it to others. The misery they create for your employees may lead to increased absenteeism or even turnover. They likely take up more operational time than other, less sour, clients. And all of that has an effect on the bottom line.

Best avoidance technique: Chances are good this attitude will come through in your first interactions with the customer. They may badmouth previous vendors, make it clear that they demand perfection, come across as bullying, etc. – all of which should scream, “move on to more profitable and positive customer relationships.”

The One Who Won’t Pay Enough for the Job

Negotiation comes with the territory, but that requires both parties to participate. If a load doesn’t make financial sense, turning it down makes business sense.

You take it on because: Something is better than nothing — those wheels need to keep turning. If you don’t take it, another trucking company will.

But, consider this: Yes, there will be times when taking a low-paying load makes sense — for example, if it will cover fuel costs and get your truck to an area with better paying freight or it leads to solid referral business. But, if you are losing money on low-paying loads, being in position to capitalize on the bigger opportunities will be more of a challenge.

Best avoidance technique: Be proactive in finding regular, good-paying customers so you won’t need to pick up unprofitable loads.

Are you a Fleet Owner looking to grow your trucking business but limited with current financing options?

We can help you get paid faster for loads delivered and protect your fleet from lost revenue.

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