Lessons From the Trucking Industry
What do Netflix and Amazon have to do with the trucking industry? It turns out that a few strategies are similar between them.
A report came out that speculates that Amazon actually loses money on every single Kindle Fire tablet that is sold. The hope is that people will buy more products that will then make up for this initial loss. They are not the only ones dropping prices and taking a gamble; the trucking industry has also dropped prices in an effort to gain more business. The strategy is that once business picks up again, they will keep those same customers and quickly become more profitable. So while the trucking companies (and Amazon) were moving shipments (and Kindles) at a loss, the trucking companies have recently seen an increase in volume!
We are all aware of the Netflix fiasco. Millions of users were up in arms and offended by a price increase – and not even a huge one at that. However, trucking companies have recently had several rounds of price increases and managed to keep their customers happy. Fedex National and Fedex Freight successfully merged and their profits have risen. And we speak to customers daily at PNG Logistics who are still able to choose affordable and efficient routes for their shipments. Customers are looking for simplicity, clarity, and value – Netflix did not uphold those qualities. We, however, do provide these qualities within our new TMS with tools such as quotes, tracking, and online accounting.
The trucking industry has been smart about evaluating the current market. Because of this, we are still able to find you great pricing and options for your freight due to our knowledgeable staff. We promise we will not pull a stunt like Netflix – We promise to show you the value of our services.
Have international shipments? We can help with those as well! Head to PNG Worldwide for more information.