Just exactly what is meant by the phrase “seasonal fluctuations in auto transport”? Everybody talks about it but hardly anybody explains it. The auto shipping business just assumes that the phrase is self explanatory, and to a degree it is. Obviously, as the seasons change there are ebbs and flows in the car transport industry that change with it. But what does that really mean for the customer? How does that play out in real life? And why should a customer give it any concern? Here on this page we will attempt to answer those questions, because inquiring minds want to know.
How Do Auto Transport Lead Providers Work?
When a customer searches on the Internet for an auto transport company, it is sometimes hard to tell which sites are in that business from the pretenders who are merely lead generation sites. The multiple auto shipping quotes web sites disguise themselves as real companies, capturing personal information and the particulars of an auto transport shipment, and then turn around and sell that information to nearly 10 brokers. What happens next is often chaos and confusion for the customer.
There are probably about ten former auto transport brokers who for whatever reason decided to give up shipping vehicles and now dominate the multiple quote lead business. The broker business is hyper competitive and takes a toll on most owners, so off they go. The lead providers usually own several sites that they optimize for certain major keywords. Many lead generation sites employ people whose only job is to find ways to push their auto transport web sites higher on Google, Bing and Yahoo. The customer has a hard time discerning the real from the sudo-real companies, and may unwittingly submit his or her personal information that is within seconds sold for $1.00 to $2.00 per lead to several actual brokers. The average total value of a typical multiple quote lead is therefore roughly $10 to the web site owner.
If the auto shipping lead generation site has natural or organic web position, then the $10 collected per lead is pure profit. However, if the site used advertising companies such as Google Adwords to generate the multiple quote lead, then usually that advertising service will get the lion’s share of the $10. Ouch. So most lead providers use a mixture of both methods. It’s all numbers, and some lead providers are simply sharper than some of their lead providing competitors.
Who Buys The Multiple Quote Car Shipping Leads?
Usually, but not always, very aggressive auto transport brokers buy the leads. They have to be aggressive or somebody else will eat their lunch. Think about it. That broker knows that the lead they just received was also sent to as many as 9 other companies at precisely the same time. On average it cost each broker $1.00 to get that lead. Let’s say he buys 100 leads every day, so that’s $100 regardless of whether he books an order. The auto transport broker sends an email to the prospective customer just as soon as he can figure out the quote. But by the time he does that, the customer may have already received 9 other emailed quotes. If that broker’s quote is too high, he is likely to be eliminated from consideration, even though he knows that the order is unlikely to ship anytime soon for less than his quote. For our part, we are oblivious to competitor quotes. We know what it will take to actually ship an order within one week and will not deviate our approach. For that reason, we only occasionally participate in the lead buying business.
What About The Phone Calls?
It gets worse. The lead buying broker will also call the customer right away because his 9 competitors will surely do that. If he is not one of the very first to call, he may encounter a highly agitated and annoyed customer whose cell phone is lighting up from obnoxious sales people who won’t take no for an answer. The customer may find himself regretting having filled out a multiple quote form, and most certainly providing his phone number.
But wait there’s more … many auto transport brokers trash talk one-another and make all sorts of confusing statements about the process. What to do and what not to do? Why the other fella is so bad and so on. Who does the customer believe? And even if a broker books the order, he must contend with 9 other brokers who have his customer’s information and continue to call. For our part, we respect the privacy of our potential customers and do not call their cell number. Nor do we pepper the customer with incessant emails. One emailed quote is enough, don’t you think?
What Usually Happens?
As noted earlier, there is tremendous downward pressure on lead buying brokers to lower their price. If it’s priced too cheap, the carriers drive right by that load and pick up a vehicle elsewhere that pays better. There is something in every industry called market pricing or rates, and that is also true in the auto shipping business. There are no official statistics, but many brokers know that nearly 50% of the multiple quote lead orders end in cancellation because of cheap pricing.
Our Original Car Shipping Quote Calculator
Direct Express Auto Transport was the very first company to offer free online quotes, and to this day nobody does it better.
We don’t ask for any personal information until a customer is ready to order. Give us a try by using our original and innovative auto transport rates calculator. You will find that we are still very competitive but appropriately priced. We know what we are doing, which is the reason that we have only about a 10% cancellation rate. We offer a fair deal for both the customer and the carrier, which is why both love us! Please give us a try today online or call 800-600-3750. Learn more about the auto shipping business by going here.