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The freight and logistics industry is a very competitive market. New players enter the arena every day. Everyday existing companies develop new services and improve old methods for managing their customers supply chains. Entry into this market as a new company can prove to be exceptionally difficult, not only due to the competitive nature of the industry as a whole, but also due to the effort that must go into building a new business from the ground up. Startup capital, technology, risk management, are some of the challenges you might face when attempting to open your new business, not to mention tax compliance, business licensing, and accounting system implementation and reporting.

 In many cases franchising can assist in simplifying and streamlining these start up processes based on the franchisors proven business model. A franchisor provides systems which can be followed throughout the planning, opening, and operational phases. There are, however, 

+1.4043610073     jpatterson@shippei.com

freight Sales Success:
Why independent freight sales agents win over new company start-ups.

limitations associated with a franchise model. In many cases there is a considerable franchising fee required upfront in addition to the weekly or monthly royalty fees which vary by franchisor.  While franchising provides a system for recreating a successful business model, franchises can be inflexible regarding service offerings and development. In the US there are also federal regulations associated with the franchisor franchisee relationship which are governed by the Federal Trade Commission. While Federal involvement promotes protection, compliance requirements and enforcement can be inconvenient.

 An additional option available, when exploring freight and logistics business opportunities, is the independent freight sales agent opportunity. Similar to a franchise, independent freight sales agents represent an established company and brand exclusively. Agents utilize systems, operational processes, networks, and technology to provide transportation services to a customer base controlled by the agent. Agents are paid weekly commissions based on net sales. Benefits of this option include:

no cash upfront
no startup capital required
no overhead
no cap on potential commissions

Essentially, all that is required is an internet connection and a customer base.

 PEI has experienced major success recently through growth in the agency model. In December 2010 a new PEI sales agency office was opened in the Cincinnati, OH market. Jeff Loy a previous employee of Team Worldwide decided that he had the skills and the know-how to provide better service to his customers. “PEI had the tools and network already in place that I felt were needed to be successful in the Cincinnati market. Their technology is some of the best in the industry and their credit and flexibility has made it easy to build a local network of carriers as well, to assist in making our business as successful as possible.”. Jeff’s background is in sales and operations and his partner Todd Strotman came from the accounting field. Their experience paired with the active customer base was the winning combination that almost guaranteed the success of the station. During the first few months the two worked out of their homes, and within about one year the office reported total sales of over $2,000,000.00. “PEI’s corporate support has made it very easy to grow and a comfortable pace. Their support with technology and administrative services has made it easy for us to focus on growing our business here locally and making sure the customer is serviced to the highest degree.”

 With an extensive network, a solid reputation, and cutting-edge technology PEI is equipped to provide you with the same systems and support to insure success in your market. Call, click, or e-mail us today to find out more about nationwide sales agent opportunities.