Years ago, when I was working as an auto mechanic, stores like Rapid Oil change and Tires Plus were just beginning to appear. Long-time neighborhood gas station owners complained bitterly that the big boys were moving in and taking the gravy oil change and TBA (tires and battery) business.
That did not affect me. I was a mechanic with a good reputation and my own tools. Work was easy to find and customers would follow me if I changed shops.
Years later, I worked as a securities broker and financial planner. When I first started there were 750 mutual funds available for sale. Today there are easily 10 times that amount and probably a lot more. When I started, all trades were made at 8.5% commission. No-load funds were mostly unknown.
Then along came Charles Schwab discount brokerage, Fidelity investments, T. Rowe Price, and a host of others. Long-time brokers complained bitterly that the big boys were moving in and taking the gravy trades away from the "real" brokers who were somehow entitled to their commissions.
That did not affect me. My client base continued to grow. I changed the compensation arrangemnt from fully-disclosed commissions to fee-based services and/or a blend of commissions and fees. I could do that because I provided the value-added services my clients wanted.
Today, as an expediter, I hear talk of small companies getting bigger, competition driving down the cost of freight, established companies losing ground to upstarts or other competitors, etc.
That does not affect me. Diane and I drive a highly-specialized truck. The truck and its drivers are equipped and qualified to provide a number of value-added that certain shippers seek. These shippers are willing to pay top dollar for our expedited freight transport services.
In auto mechanics, I did not do oil changes for 29.95. I did lube-service specials for $50 that included a number of inspections and services over and above the oil changes. Often, the inspections would lead to more work and the satisfied customers would produce referrals.
In the financial services industry, I did not compete with every other entry-level schmuck who hawked low-load funds. I offered value-added services for which people who wanted those services were willing to pay top dollar.
In trucking, I do not compete with truckers who grab cheap freight off load boards and can't afford new tires after three years of running. Instead, Diane and I have configured ourselves and our truck to provide expediting services. We don't serve cheap-freight shippers. We serve shippers who have the need to either move freight very fast or very carefully.
If you read the service menus of FedEx White Glove, Panther Elite Services, UPS expedited, and others, you will find they all read the same.
That is good news for expediters and especially the value-added expediters. While a number of carriers are keen to sell the top-dollar expediting services, few of them have the trucks and drivers to provide them. Thus, when a sale is made, the loads are brokered out if the carrier cannot handle them.
Diane and I have done a number of pick ups from UPS terminals, moving company trade show specialty terminals, etc. We have rescued freight for customers, plucking it out of LTL company systems like Yellow. We have had customers book our truck for two days once they met us and saw what we could do.
It does not matter who sells the services Diane and I offer. There is enough business out there to keep us busy. We have what certain shippers and consignees want. That is what will keep us financially healthy and happy in the years ahead; no matter what company is number one, who buys whom, or who happens to take the gravy runs by introducing a new concept.
For one-truck owner/operators, it's not about what 99.9% of the rest of the transportation industry is doing. It's about carving out a teeny-tiny slice of the market for yourself and laughing all the way to the bank.
