The Lowest Bid Might Not Always Be The Right Choice

Do you ever wonder why some freight trucking companies are profitable? It takes more than knowing how to choose a good route or having the best drivers who know a trick or two about making prompt deliveries. The trucking business is incredibly competitive, and aside from having the right equipment for your company, the smart way to run such a business is to use load boards because they are not only extremely competitive, but it’s also the one way to get quality customers.

Individuals that operate freight trucking companies also know the importance of keeping on top of their expenses in the way of maintenance, truck repairs, truck and trailer payments, fuel, and the cost of their work. Therefore, they must be able to bid low enough to be competitive, but high enough to be profitable and remain relevant in their line of work.

It can be challenging to compete for jobs against other lower-biding freight trucking companies and still keep estimates at a reasonable rate. Low bids can mean anything from shipping delays, safety violations, low-quality products, all which can affect the profitability and reputation of freight trucking companies. With costs like fuel increasing every other minute, expenses can get ahead of revenues, and FTL trucking companies must always look for innovative ways to improve their cash flow to prevent issues like running out of cash-flow or the inability to pull loads until clients start paying.

Choosing low bids may prevent competitors from stealing your customers for some time, and it may also be beneficial, especially for a novice contractor that needs to build their client base, but lower bids can also tell a client a lot about how you are likely to perform and deliver in the long-term. A client may see it as your way of short-changing them in the future should the need arise where you can deliver on your promises. The lowest bids could also mean that customers don’t get additional services when they need them such as on-going support or after-sale services.

The FTL trucking business runs on efficiency and customers need to know that freight trucking companies will always deliver their goods, regardless of the bid (high or low) even in the worst of time. Therefore, bids should be just right in order to prevent the costs of deadhead miles outweighing profits.

Learn more about Matrix Transportation and the transportation services they offer including: dedicated truckloads, JIT truckloads, less than truckload (LTL), same day expedited FTL and LTL, full truckload, warehousing, cross-docking, and trailer rentals at  To contact one of our trucking experts call toll free 888.896.2405 today.



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