I’ve Got a Secret

If you move less-than-truckload shipments between Canada and the United States, I hope you weren’t surprised by the news last month that Consolidated Freightways, a large American common carrier, filed for bankruptcy protection. The death of CF was no stretch to predict: all you had to do was read the business section of a newspaper to see that the company had been losing big money for nearly two years.

But most trucking companies aren’t in the news and don’t have their business plans and financials scrutinized by MSNBC or the Globe and Mail. In order to get to know your competitors–to understand their strengths and weaknesses–you’ll need to snoop. Here’s how.

Narrow the field. Gathering information is not nearly as daunting as you think. Never mind that there are 12,000 Canadian trucking companies. Depending on the niche you serve, if you look closely at your business you’ll see five or six primary competitors. These are the companies you need to target. If your sales people understand how you match up with each competitor in key areas of performance, you’ll reduce the sales cycle and attract new customers while weakening the very company you have targeted.

Get organized. Consider how you’ll manage the data you collect so it’s useful. I use a SWOT grid (SWOT stands for Strengths, Weaknesses, Opportunities, and Threats). It’s a simple tool planners use to organize strategic information. A SWOT analysis might include a description of the marketplace and the competitor’s position in it, along with challenges presented by other competitors, regulations, specific shippers, or the economic climate. The first company to SWOT, by the way, should be your own.

Use the web. Most carriers of any substance have a presence on the Internet, including information on such things as company philosophy, transit times, technological capabilities, geographic areas served, and names of key personnel.

Put search engines to use, too. Go to Google or AltaVista, type in link: www.shipmsm.com, and you’ll get a list of web sites that link to my company’s site. Try it with your own Internet address, or with a competitor’s. It’s a way to find out which organizations have an interest in or are doing business with the one you’re researching.

Customers. Want to know a competitor’s weaknesses? Ask its customers. Whenever you call a prospect to introduce yourself, everything is always working fine. However, as you build rapport, develop a relationship, and ask leading questions about your prospect’s satisfaction, he’ll open up and be an excellent source of information.

Do a credit check. No one wants to deal with a carrier that doesn’t pay its bills. A bad credit record hints that the company may be skimping on maintenance, not investing in technology, and turning over key personnel. All of these factors will contribute to a company having trouble delivering on their service commitments.

Talk to suppliers. Many of your suppliers also deal with your competitors. You’ll be amazed what a sales rep who’s chasing your business will tell you. Sales reps love to talk. Ask the right questions and sit back and listen.

Be a good resource. In order to get good information, you have to give good information. That means not spreading false rumours or telling tales out of school. If your peers see you as a trusted, reliable source, you will develop a network that will give you the same in return.

Talk to enemy soldiers. When you have an opening in your company, pick up the phone and call your competitors’ employees who are responsible for the job that you need to fill. Invite them in for an interview and pick their brains. Worst-case scenario, you get lots and lots of information for your SWOT analysis. Best-case scenario, you fill your empty desk and hurt a competitor who now has an empty desk to fill.

Keep it legal. If you’re going to be Jim Rockford, don’t cross the line and risk a stint in the crowbar hotel or a courtroom. We’ve done some pretty creative things over the years to get information. Be smart, but don’t be a criminal. It’s not worth the harm it will do to you or your company’s reputation.