THE PARTNERSHIP CONNECTION NEWSLETTER Issue 1 - July 2011 INAUGURAL LETTER Welcome to the 1st edition of The PartnerShip Connection. The staff here at PartnerShip understands that every business - in every industry - has two priorities at the top of its list: 1. Sell more product or services 2. Lower overall operating expenses We've put this new monthly newsletter together with your business priorities in mind. Since we're a shipping management company that offers you discounts on small package and freight shipping, we're going to provide you with the most up-to-date shipping trends and news, as well as tips to help you save money on all of your shipping needs. We also know that shipping, while a large part of your expenses, is only a piece of your overall business. So we'll also be providing you with the most relevant and reliable business intelligence on leadership, management, and sales - content your competitors often get from high-priced consultants! In addition to providing you with valuable content in a "quick-read" format, we'll have a Q&A section to answer any questions that you or your fellow readers have about packaging and shipping. Send us your questions, comments, or topic ideas to newsletter@PartnerShip.com. We look forward to hearing from you! SHIPPING & TRANSPORTATION NEWS Carrier Base Rates are going up - PartnerShip Programs Lessen the Impact of the Increase Less-than-truckload (LTL) carriers UPS Freight, Con-Way Freight, YRC, and ABF Freight System, Inc. have all announced a general rate increase averaging 6.9 percent on non-contractual shipments. ABF's new rates will be effective July 25, while UPS Freight, Con-Way Freight, and YRC's increases are scheduled for August 1, 2011. Believe it or not, the economy is improving overall, slowly but surely. This has caused a domino effect of people buying more products and suppliers shipping more products, which is using up more space in truck trailers. In addition, many of the carriers state that the rate increases are necessary in order to keep up with cost of improving equipment, facilities, and technology - all to remain competitive and provide better service. These improvements should result in faster transit times, easier tracking processes, and greater sustainability efforts. The effect of the rate increases will vary for individual shippers and shipments based on characteristics such as geography, lane, product classification and weight. Also note that fuel surcharges for the carriers are a variable cost (like prices at the gas pump), and are also subject to rise and fall throughout the year. Using a PartnerShip shipping program, customized for your business and industry, can help lessen the impact of these rate increases. For more information about the individual carrier rate increases, please reference these links below for each carrier: UPS Freight http://ltl.upsfreight.com/news/news.aspx?id=News2009\on20110701x ABF Freight System, Inc. http://www.abfs.com/about/news/ Con-Way Freight http://www.con-way.com/en/about_con_way/newsroom/ YRC http://www.yrc.com/news/articles/1131.html For questions on the rate increases and how we can put together a customized solution for you, contact PartnerShip at 800-599-2902 or email select@PartnerShip.com. SHIPPING TIP Make sure you're using the correct mode and service level Examine where you spend your transportation dollars. Is your spending concentrated in less-than-truckload (LTL) freight rather than small package, or air instead of ground? These distinctions are called modes of transportation. Ground shipping and air shipping are the two most common transportation modes that businesses use on a day-to-day basis. An example here helps illustrate the impact of using the correct mode. For two-day guaranteed service, you can send a 35 lb. package from Cleveland to Boston and pay a ground rate of around $10. Sending the same package second day air would cost approximately $35. That's a difference of 71% to ship air versus ground for the same two-day level of service. Check out our FREE Whitepaper section for more fundamental tips on saving significantly on shipping costs. ASK THE EXPERT Q. When auditing freight invoices, what should I be looking for? A. It is estimated that between 5% and 10% of freight invoices contain some sort of error. Auditing your freight invoices can help you catch costly mistakes. You should audit several line items on a carrier invoice, most notably: checking for the correct discount, making sure you are billed for the service you requested, verifying product classification (freight shipments only) and monitoring extra service charges. CUSTOMER COMMENTS The NSGA Shipping Program is the most widely used service by our members. On average, participants enjoy annual savings in excess of $1,000, which more than covers their annual membership dues. In addition, the PartnerShip team provides the highest level of customer service to our association and members. Thank you PartnerShip! Darlene Plunkett Director of Membership & Sales National Sporting Goods Association ABOUT YOUR BUSINESS Ignite Selling Productivity by Using a Creative-Problem-Solving Selling Method by Dan Coleman One of the most effective ways for sales professionals to ignite selling productivity is to use a Creative-Problem-Solving Selling Method. In using a Creative-Problem-Solving Selling Method, the sales professional looks at interests and needs through the lens of the customer, and not through a self-serving lens. In order to view interests and needs through the lens of the customer you first have to develop a Creative-Problem-Solving Attitude. This customer focused attitude is defined through the following statements: * I am here to solve a customer need, problem, or opportunity versus I must make a sale * I have an interest in developing rapport, trust, and relationships with customers * I ask pertinent questions, listen to, and am genuinely interested in what the customer says * I proactively answer customer questions, and provide information about my company, products, and services * I respectfully respond to customer objections, generate ideas, and recommend solutions * I am patient, honest, & sincere With a solid Customer-Problem-Solving Attitude firmly anchored, the sales professional can then ignite their selling performance by using a Creative-Problem-Solving Selling Method. What is a Creative-Problem-Solving Selling Method? A Creative-Problem- Solving Selling Method is defined as a set of steps to take to look at the interests and needs of a customer in order to solve a need, problem, or opportunity. These steps consist of: Step 1: Opening the discussion and building rapport Step 2: Discovering and defining the customer interests and needs Step 3: Generating ideas to address the customer interests and needs - and recommending a solution Step 4: Gaining customer agreement to move forward You will ignite your selling productivity by developing a Creative- Problem-Solving Attitude, and applying a consistent, repeatable Creative-Problem-Solving Selling Method. Furthermore, you will find your work to be far more satisfying and rewarding because you naturally look at issues and needs through the lens of the customer - and by so doing, you better understand their needs, generate more ideas, consistently make better recommendations, and as a result... Ignite Your Selling Performance! Stay tuned for the next edition of the PartnerShip Connection where we will discuss these steps more in-depth and discuss how to implement them. Dan Coleman, the founder and president of Excelsior Learning, has a B.S. from State University of New York and is currently working on a M.A. in Creative Studies at Buffalo State College. He is consistently praised by his clients as a highly knowledgeable and energizing trainer who brings fresh content, practical tools, and unique experiential learning methods to deliver training that works. For more information visit www.excelsior-learning.com. Contact Dan by email at dancoleman@excelsior-learning.com or by phone at 330-284-5446. PARTNERSHIP WHITEPAPERS 5 Key Strategies to Control Shipping Costs http://www.partnership.com/pages/learning/default.aspx?DirectPDFRequest=5KeyStrategies.pdf Advantages of using a 3PL http://www.partnership.com/pages/learning/default.aspx?DirectPDFRequest=3PL.pdf Freight Classification and Routing Management http://www.partnership.com/pages/learning/default.aspx?DirectPDFRequest=FreightClassification.pdf Copyright 2011 PartnerShip. All rights reserved.