The pallet and low-grade lumber business is fiercely competitive. If you have survived the industry over the last ten years, you know that. Successful companies have one big secret. They know that they must keep their prices competitive. But many times low price is not enough to keep customers happy. There is something more important than price to preserve the longevity of your client base.
And that secret goes beyond even service or quality. So how do you put a shield around your customers? How can you bulletproof your business from competitive pressures?
You have to make yourself indispensable for your client. Getting out of the pallet commodity business has been the goal for decades for many pallet and packaging companies. How do you do that?
I believe it all starts with how you look at your company and how you present yourself to your customers. You are not just in the pallet business. You are in the packaging and logistics solutions business. Yes, pallets may be your biggest product. But, you exist to eliminate headaches that customers have with their unit loads, product shipping and logistics. You want customers to trust you to make pallet problems go away.
And when a customer calls with a problem that is when you can really shine. That call is an opportunity to show why you are more than just the lowest price producer of a commodity item. Your effectiveness, speed and ability to solve a problem will help you stand out.
The first thing is you need to be reachable and responsive. If people can’t get a real person to solve a problem, you have one strike against you. Don’t hide behind technology, email or voicemail systems. Ask yourself, “When customers have a problem, have we provided a clear path for them to connect with our customer service staff?” This could include special phone numbers or even an app to order pallets and upload pictures of problem pallet loads.
From mold to sanitation to heat treatment to Euro pallets to you name it, having access to solutions is important. Even if you don’t offer something, knowing about it and how to get it can help you bring solutions to the problem.
This is where your sales and customer service team can demonstrate what differentiates you from the competition. The best way to help avoid problems is to know what your customer does with the pallet. What will be shipped on it? How long will it remain in storage before use? Where will it be stored? What sizes are the boxes? Can you provide an odd-sized pallet that will do just as well or better than a 48×40 pallet? Will the pallet be exposed to extreme temperatures or weight and racking situations? The more you know, the better you can specify the right pallet and maintain quality standards. For more information on quality standards, see the article on page 48.
Beyond information, you want to get deeper access to customers through specialty recycling, manufacturing or product design programs. Instead of just recycling pallets, why not offer total recycling services, such as grinding of waste products or recycling of all sorts of packaging? You can offer backhaul freight services or storage and logistics services to customers. These are not meant to be freebies; they should add more money to the bottom line.
But if you only think of yourself as just a pallet or lumber company, you won’t be able to dream big enough to see these opportunities. No, you can’t do everything for every customer. And no, you don’t want to stray too far from your core business. But you do need to realize that the best way to bulletproof your business is to turn problems into opportunities.
Champion these successes in your company and make sure that employees know that you value meeting deadlines and going the extra mile. How do you measure customer service at your company? Is it on-time delivery, order accuracy, customer satisfaction? Do employees know that their friendliness and ability to solve customer problems will help them advance?
I am reminded recently of my experiences with Enterprise Rent-A-Car. I will always look there first when it comes to renting a car. The reason is its commitment to make sure that I was happy after another rental car company messed up my reservation. Enterprise worked to get me a car and didn’t charge me a crazy rate for a last-minute booking. When I returned the car at the airport in another city, the Enterprise rep asked me if I was happy with my service and I mentioned that when I got the car it was only a third full. Otherwise, everything was great. She said, “Well, let me see what I can do about that fuel situation.” I was returning the car about 65-70% full. She worked to get me a slight discount to cover the estimated fuel difference. I was stunned. Usually, the rental car company just takes the extra gas as a gift. I told her that I was satisfied.
Enterprise trains its employees that it is a service company first, and a key metrics for the promotion of employees is customer service satisfaction. That is why the woman at the counter didn’t want me to go away unsatisfied. Last year, J.D. Power rated Enterprise as the number one rental car company in the United States for consumer satisfaction.
While one rental company failed to deliver and hid behind its policies to charge me for days I couldn’t use, Enterprise saved the day. That is making yourself indispensable for your customer. What are you doing to make your customers fans? That is the best way to bulletproof your business.
