Are you considering a sales career in transportation? If so, it’s a good idea to understand the peaks and valleys of the industry so you know what to expect and how to succeed.
Is the transportation industry a stable industry? Yes. But is the transportation industry also known for its unpredictability, with rapidly shifting market conditions? Also yes.
Here at Anderson Trucking Service (ATS), we’ve experienced nearly seven decades of ups and downs and our staff is well-equipped to weather these storms.
For those navigating this dynamic landscape, the key to thriving lies in preparation and adaptability. Whether you're new to the industry or a seasoned professional, understanding how to manage the ups and downs is essential.
In this article, we’ll share some of the tried-and-true strategies that have helped us stay resilient and ahead of the curve, no matter the market conditions. From building a diverse book of business to prioritizing service, these tips will guide you through any storm.
- Build a diverse book of business
- Consider seasonality
- Prioritize service
- Increase your volume
- Don’t live off your commission
- Finding the right company
Tips for Navigating the Ups and Downs of Transportation
At ATS, we’ve built our success on a simple yet powerful philosophy: Be like the buffalo. Instead of running from the storm, we charge straight into it, adapting and overcoming whatever challenges come our way. We know how to adapt and we teach new employees to do the same thing.
These are some of the strategies that will help you power through any shift in the market.
Build a Diverse Book of Business
When you’re just getting started, it’s important to focus on building a diverse book of business that keeps you busy with customers year-round. You want to have a large, varied book of business and still maintain effective customer relationships.
Aim for customers in a variety of industries. This provides you with a good balance that’ll give you steady volume through the year. While one market blows up, another may be slowing down. The goal is to never make yourself vulnerable to a market shift.
When one particular industry may be struggling with economic changes, working with customers in other industries can help you maintain a stable profit margin.
Related: How to build a book of business
Consider Seasonality
When building a diverse book of business, you need to think about seasonality.
It’s not uncommon to fall into the trap of thinking you’re doing well because you have a few customers in a productive market. Once you hit a new season, your book of business can be flipped on its head.
That’s because some industries don’t stay busy year-round. Take the construction industry. A lot of freight moves in the summer, but it’ll slow in the winter when a large part of the population is blanketed in snow.
You’ll struggle to navigate the ups and downs of the market if you don’t think about seasonality when building your book of business. A strong book of business doesn’t fire on all cylinders at the same time.
Think about it this way: It’ll be hard to get someone to buy a snow shovel when they’re heading to the beach with their swimsuits and coolers. So why not focus on the people who need new coolers right now? A few months from now when they stop buying coolers, you can think about selling snow shovels.
This will supply you with a steady income year-round.
Prioritize Service
Whether the market is good or bad, service is important. Good service and strong relationships can carry you through lulls in the market.
Let me use an example. When we were at the height of the pandemic, truck drivers were in high demand. Shippers were willing to spend whatever it took just to get a driver on their load. It didn’t matter if the driver was late or didn’t provide the greatest service; they were just happy to get their load moved.
As the market shifted and drivers flooded the industry, it quickly became a customer’s market. If a driver shows up just one minute late, the customer has their pick of other carriers down the road.
Now think about this as a sales representative. Failing to provide top-notch service can make your customers go elsewhere. When you communicate effectively, practice transparency, and pride yourself on providing good customer service, you’ll earn their trust and respect — creating loyal customers.
Loyal customers can lead to even more opportunities to build your book of business through recommendations from current customers.
Increase Your Volume
When the market gets soft and rates drop, you have to flex. It comes down to increasing your volume. You have to either move more freight or larger shipments.
It can take a lot of consistency and determination to move through rate decreases, but adjusting alongside the market is the name of the game. Be proactive, not reactive.
On the flip side, when rates are high, you’ll be rewarded for your efforts. As capacity tightens and shippers need help, you’ll have the opportunity to capture more new business.
Don’t Live Off Your Commission Check
You should never live off your commission check. Live off your salary. You can have phenomenal months and get huge commission checks, but those checks aren’t guaranteed.
The transportation industry sees peaks and valleys, so you don’t want to rely on income that isn’t guaranteed month to month.
What to Look for in a Transportation Company
Working for the right company can make all the difference in your career. If you want to grow as a salesperson, you need to work for a company that can help you do that. That will look a little different for everyone, but in general, you’ll want to work for a company that is both stable and invests in its employees.
Choose a stable company to work for. When hard times surface, a stable company isn’t going to fall apart. A financially stable company won’t be thrown off course by one bump in the road. Because of that, you’ll be able to continue to show up for your customers.
A stable company might be one that has been around for decades, but it can also be a newer company that’s debt-free and making strong financial and strategic decisions.
Additionally, you should find a company that supports its team members by implementing effective training programs and support tools. A strong company should have the resources in place to teach you how to do the job and navigate hardships.
Be sure to ask about training and support in your interview.
Succeed as a Salesperson
Navigating the ups and downs of the transportation industry requires more than just grit; it demands strategy, adaptability, and a proactive mindset. At ATS, we believe in facing challenges head-on, just like the buffalo that charges into the storm.
By building a diverse book of business, considering seasonality, prioritizing top-notch service, and preparing for market shifts, you can stay resilient and successful no matter what the industry throws your way.
Remember, the key to long-term success lies in your ability to adapt and grow, even when the market is tough. By implementing these strategies, you’re not just surviving the storm — you’re learning to thrive in it. Keep charging ahead, and you’ll find that every challenge is an opportunity to come out stronger on the other side.
You certainly don’t have to go to college for sales to be successful in this industry. There are a few skills that will help you stand out.
Wondering what to expect at ATS? Learn more about the career path of a sales representative at ATS.
