Quote Negotiation
This document outlines the procedures to follow when a shipper requests a lower price on a quote. Adhering to these guidelines is essential to ensure consistency and maintain profitability within our operations.
When to Negotiate
Shippers may express concerns regarding the pricing we have quoted by stating that they cannot meet our price or that it is too high. They may also request a better offer or a lower price. In such cases, it is appropriate to engage in negotiations with them.
Procedure for Pricing Adjustments
When a shipper raises concerns about pricing, it is crucial to follow the established protocol for addressing these issues effectively.
Step 1: Seek Manager Approval
If a shipper pushes back on pricing, promptly reach out to your manager for approval before making any adjustments. This step ensures that all changes are aligned with company policies and profitability goals.
Step 2: Standard Margin Decrease
Typically, we allow a standard decrease of up to 3% on the margin. This adjustment can help accommodate the shipper's concerns while still protecting our overall profitability.
Step 3: Special Exceptions
In certain circumstances, special exceptions may be made for a larger decrease. However, these should be considered a last resort and only approved under specific conditions that warrant such an adjustment.
Step 4: Communicate New Rates
Once you have received approval from your manager, promptly send the new rate to the shipper to ensure they are informed of the changes. Clear communication is key to maintaining strong relationships with our shippers.
By following these steps, we can effectively manage pricing adjustments while fostering positive relationships with our shippers.