Pyle loses Lowes Account

Discussion in 'A. Duie Pyle' started by Irishman107, Jan 21, 2007.

  1. CFer

    CFer Active Member

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    bad habit, Are you talking about CF?

    They had an account like that coming out of Salt Lake City. They were all inside residential deliveries. The freight was treadmills. Not only did we have to bring them in but we also had to take it out of the box and take the trash back with us.

    If I remember right, part of the contract also involved picking defective ones up and sending them back for free
     
  2. Friend of the frog

    Friend of the frog Member

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    Sometimes it is necessary to take on a loser account like the one above for a few reasons.

    A - It keeps men working
    B - It keeps other freight moving
    C - It makes other freight more profitable.

    Companies are not in the business to lose money, but if it helps build direct loads and allows other freight to skip break bulks it can add a lot of profitability to a terminal.

    Trust me. If there is an account that does not offer anything to a company, they will cut it loose. In the publicly trading companies, you have to answer to share holders and in the private ones, you have to answer to ownership.

    There is always a payoff.
     
  3. Apostolic

    Apostolic Super Moderator Staff Member

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    Heres an example of two accounts thats not worth much to haul.
    Sallys beauty stores,all inside deliveries,stacking their product around their stores that their customers are shopping in.
    And also Yankee candle mostly inside deliveries at shopping malls.
    Both take a long time to make the delivery.
    I know this because my company handled both,and they are real money losers.
    My company doesn't haul this stuff anymore thank GOD.

    Home improvement products are very easy to damage when its moved with so much other common freight.
    Home improvement stores are no prize to handle,as well.
    But the thing is with the trucking industry,it comes down to have something to haul,because how long will you be in business if you don't have anything worth hauling?

    So is it better to haul something for nothing,or nothing,for nothing?
    Its a tough business to be in thats for sure.
     
  4. Irishman107

    Irishman107 Member

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    Awards and 69 cents will get you a cup of coffee at McDonalds. Its a shame but in todays world there is no loyalty. The only thing companies say is sure you did a good job but what have you done for me lately....AWARDS DON,T PAY ANY BILLS
     
  5. Hockey Puck

    Hockey Puck Member

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    Folks here are all mentioning the traditional examples of the worst accounts in the world to service. But I maintain there is no such thing as bad freight, just badly priced freight.

    Sally Beauty, by definition, isn't bad if you get compensated for the additional work involved. You know up front it's what you are going to have to do to service the account. It is going to take more time to service, so you need to build that into the rate.

    Smart carriers recognize this and price the freight accordingly. Dumb ones (may they RIP) ignor the obvious.

    Earlier some quoted that Lowes is 15% of Dyle's business. Is that true? Can anyone confirm that? That's a bunch of biz to lose.
     
  6. Friend of the frog

    Friend of the frog Member

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    Lowes is less than 10% of Pyle's business. They did about $15 million in Lowes business and their total revenue is about $180 million.
     
  7. Hockey Puck

    Hockey Puck Member

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    F of F -

    Wow, that's still a pretty big wack.

    Did they have any warning...you know...this is going out to bid and the low ball carrier is going to get it.

    Or did it just come out of nowhere?
     
  8. Friend of the frog

    Friend of the frog Member

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    I think for every carrier, this is normal. Accounts like that go out to bids every year and sometimes, someone just blows everyone else away.

    Its not like it went to a sh*t bag operation it went to FedEx who does a good job in their own right
     
  9. EastBoundnDown

    EastBoundnDown New Member

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    You gotta hand it to Duie Pyle though. They have guts. Any other carrier would have buckled under on the price and put themselves in a bad financial position.

    Pyle will more than likely replace Lowes with lots of other accounts. Maybe not as big, but profitable.

    By the way, I thought Estes got the Lowes business but I see lots of posts saying FedEx got it.

    Keep on Truckin'
     
  10. chitownpeddler

    chitownpeddler Well-Known Member

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    According to the Estes board......Home depot dropped them as their carrier. It says that home depot is now opperating its own dc's. And having swift deliver from their dc's to the stores. Sounds like they lost a big chunk of business too!!
     
  11. screwy louiey

    screwy louiey Well-Known Member

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    deep discounts

    FOF
    Big accounts are like musical chairs with the carriers so its not like a big lost cause someone else lost an account that they (ADP) might have picked up and saw it better to let it go. They come and go like fruitcake at xmas.

    I work for RDWYand we lost a million dollar account recently not because of service or claims but it is an era of deep discounts. In a time of razor thin profit margins and job cuts you better be in it to win it or you'll be out of it (Business wise). We had an account that was sand paper good heavy tonnage but was operating @ a 105 but combined with other freight it did alright but we dropped it after a year just like every other carrier. There isn't a carrier in the area who hasn't handled this account

    It will eventually hurt alot of carriers with these deep discounting of freight going on as we'll wind up prcing each other out of the market. "You can't keep hauling it for free and expect to be around for long":greedy:
     
  12. Friend of the frog

    Friend of the frog Member

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    Right now it is tougher than ever before because you have FedEx and UPS offering bundle discounts. How can a local carrier compete ?

    They can offer,next day, long haul, package, logistics, etc. some people like one stop shopping.

    Think of FedEx and UPS as Walmart with wheels.
     
  13. gearraker

    gearraker Active Member

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    thats why were seeing alot of good smaller family owned carriers union and non union selling or going out of businees
     
  14. othertrucker2001

    othertrucker2001 Professional Flummoxer

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    I wish some one with a big bundle of discount would get the Cato account from Saia.
     
  15. tundra2000

    tundra2000 Member

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    UPS is no WalMart

    Youve got to be kidding! UPS is nothing like WalMart or will they ever be. UPS is Unionized and pay their employees appropriately. (Full Pension,Healthcare, etc......._) I cannot say the same for FedEx though.
     
  16. serta

    serta Active Member

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    Hate when people mention walmart and a union company in the same sentence.
    Walmart-Always low Wages, Always
     
  17. Familyman

    Familyman Banned (Punk)

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    I think the reference was to one stop shopping, not pay or benefits.

    FM
     
  18. Friend of the frog

    Friend of the frog Member

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    Thanks FM. I thought I made that abundantly clear. Nowhere did I mention anything about how they treat employees.

    Strictly customer ease.
     
  19. UnionTrucka

    UnionTrucka Member

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    i can agree with the Wal-Mart on Wheels comment. a prime example of that was when a customer refused to give me a skid and in turn gave it to UPSF. they gave this customer a quote of $100 for a skid leaving NYC to be del. in Kentucky. that's a joke.
     
  20. DETrob

    DETrob Member

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    Be thankful for losing that account. Most of those discount stores are so picky about their freight. I bet PYLE wasnt making any money off of them. Let the NON-Union companies have it. They will discount them too at over 70% and pay dock workers top dollar to slip sheet load it. Loss of revenue in my book. Pyle will pick up another account soon, They are a good carrier.
     

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