Caution: Changes in the Same Day Delivery Models and the Effect on Your Business

American Expediting Friends and Family,

Thought you would like to see the latest Press Release we published on the evolution of the same day courier business. This will be available to news sources throughout the country.

Let me know what you think....GB

With over 7,000 established couriers across the United States, there are plenty of same-day couriers to choose from if you are looking to have your package delivered by the end of the day. However, only a handful are remaining loyal to the traditional courier model with drivers available for rush and immediate delivery shipments. This is, in part, due to a variety of market factors forcing couriers to change, resulting in delays that could cost you real business from your clients. This article addresses these market factors and offers safer solutions for finding the most appropriate courier for your needs and thus maintaining your client base.

February, 2011 – Philadelphia, PA: With early roots exemplifying the American Dream of the “mom and pop” business, the same-day courier industry has blossomed over the past three decades into a cultured and mature business model. Initially for most, the majority of the work concentrated on moving legal documents quickly between locations. As the industry grew these couriers began building upon their original pick-up and delivery work with the addition of time sensitive and Chain of Custody shipments. Examples of these services included the pick-up and delivery of medical samples at a specific time of day; the distribution of Hollywood movie releases to safeguard against illegal duplications, and transportation of birds, fish and small mammals.

Twenty-five year industry veteran, Mark Sanner of American Expediting, has seen a tremendous change in the small parcel industry since his days with the “big brown” company. “Twenty years ago the FAX machine began biting into our business but now there are dozens of ways to electronically transmit documents and never call a courier. This has forced our industry to look for alternative growth avenues.”

Unfortunately, Sanner notes, a company attempting to adjust to a new growth opportunity can do so at the expense of its grass roots business. “We’ve seen our competitors drawn away from the urgent deliveries that their clients require.”

Glenn Berger, Director of Sales for American Expediting affirms this notion. “Just this afternoon we received another request for on-demand deliveries of medical specimens from the largest lab company in the country. The lab had received three complaints in the past week from their customers about late pick-ups of both medical organs and specimens. For them, that’s three disgruntled customers with patients that had to be retested.”

What was eventually discovered was that the previous courier had been combining multiple deliveries with other non-related shipments. Test results needed in the hands of doctors within a few hours had not even arrived at the lab. Compounding the service failure was jeopardy to the specimen results due to the temperature instability from the lengthier delivery period.

To get an idea of changes in the landscape of the courier business, you just need to consider the retail industry. Just ten short years ago, consumers travelled to their local electronics store for televisions, to their local bookstores for new releases and to clothing stores for the latest fashions. Today many of those items are being delivered to homes as a result of convenient online ordering capabilities. To give you an idea of the volume of packages involved, a single Internet retailer is delivering up to 20,000 packages per day in the Chicago region.

”With courier companies becoming more involved in this routed business, many are losing site of their roots,” says Sanner.

Thus, the best solution is doing your homework. Ask potential couriers for references, especially in your geographic area. Make sure they are servicing similar customers in your industry. Obtain firm commitments on pick-up and delivery times, and request email notifications when your packages are being picked up and delivered. When your business reputation is on the line, you will want to only work with those couriers that can offer you solid, sensible solutions.

BEWARE OF THAT BIG BAD TANTALIZING DISCOUNT

Are you enticed by a product advertisement promising 10% off your best price?

Many people are and just as many are being hoodwinked by wily manufacturers; manufacturers who have assigned different model numbers or names to the same, identical product. They do this so that they can sell their branded product to both large discount retailers who can afford to resell those items for less, and to smaller retailers who specialize in “service.”

These marketing-savvy manufacturers know that the simple addition of the word “discount” in their advertisements guarantees sales traffic if not outright sales.

But now there are technical tools available for consumers that help them perform an “apples vs. apples” comparison of the same products on sale by competing retailers. Such websites as Nextag, Shopzilla, and Bizrate enable a shopper to find specific model numbers, the stores selling these models (both online and brick and mortar retailers), and the various prices. With their help, the potential customer can weed through the comparative features of each model and make an educated decision on whether a 10% discount off of a competitor’s best price is of any consequence.

Does a service discount entice as well?

It is my opinion that the service industry is a different animal that doesn’t lend itself to discount advertising. If you don’t agree or wonder why, consider the following:

Imagine that a same-day courier service advertised a 10% discount off the best delivery prices being offered by their competitors during a specific month. Now, try applying the apples vs. apples products comparison model to this “services” comparison discount.

I find it isn’t applicable. That is because for 50% of service customers price is the priority, but for the other 50% of customers value and performance are the deciding factors. For that group, customer service, reliability, communications, online access and reporting all come into play.

A recent presentation by one of the top pharmaceutical suppliers spoke to this exact scenario. According to the assessment, couriers who cut corners to achieve lower prices can leave customers vulnerable to fines, theft, and late deliveries.

Being cognizant of those possibilities would certainly give rise to other service questions by that courier among prospective customers. They may worry that the assigned driver often gets lost resulting in rush delivery delays. They may wonder if their assigned courier has working air conditioners for transporting sensitive medical STATs. Or, they may question if their assigned driver is the one who fails to lock his vehicle carrying their pharmaceuticals valued at $100,000. These are all legitimate concerns and all actual incidences from the courier industry’s archives.

“Personally, I believe these advertisements a 10% discount cheapens the entire courier industry” says Victor Finnegan, President of Philadelphia-based American Expediting Company.

Finnegan, who is opening four new locations over the next month, plans to promote his sites by guaranteeing better service for every month of the year, not only in the new Chicago, Hartford, Boston and West Virginia offices, but in his other 28+ locations. By promising “better” service across the board, Finnegan stands behind his Operations Team, a dedicated team of professionals committed to delivering the best value and performance of any courier in the nation at competitive prices.

So, when you’re looking for the best service and value for your important package deliveries, be “penny wise, not pound foolish,” in the words of another Philadelphian: the late Benjamin Franklin.