Cargo van businesses provide logistics services, including the movement of freight, delivery of products, and fulfillment of transportation needs for businesses or individuals.
In case, you are planning to start a cargo van business, or you already have a cargo van business, and you are cracking your brain on how you can get contracts from:
e-Commerce companies, retailers, manufacturers, logistics and shipping companies, moving and delivery services, construction companies, event organizers, rental companies, and government agencies, then you may want to consider reading this article.
In this article, we will look at ways you can secure a cargo van contract either as a new cargo van business or an existing cargo van business.
Steps to Get Cargo Van Contracts
Business Registration and Compliance
The truth is that without legally registering your cargo van business, no companies will take you seriously. As part of what you need to do to ensure compliance, you must obtain the necessary permits and licenses such as:
A business license, Commercial Driver’s License (CDL), motor carrier permit, vehicle registration and licensing, commercial insurance,
Hazardous materials transportation permit, permits for transporting biohazardous materials, local operating permits, state and Federal Tax Identification Numbers.
In case you are not sure of the licenses and permits you will need, you may want to consider checking with local, state, and federal authorities.
You should also consider getting insurance to protect your business and your clients and invest in reliable vehicles and equipment.
Establish a Professional Image
Of course, you know that if your cargo van business is seen as a small-scale business, or a business without structure, then no company will risk giving you logistics and transportation contracts.
It might not cost you much to establish a professional image for your cargo van company. All you need to do is build a well-designed website that will showcase your company as a well-equipped and structured business.
You should also be ready to spend on branding and marketing materials. The whole reason why you should do this is to ensure your cargo van company conveys reliability and trustworthiness.
You must plan to attend industry events, conferences, and trade shows related to transportation and logistics to connect with potential clients, industry professionals, and decision-makers.
Just make sure you go to these networking events, conferences, and trade shows with your business cards, and marketing materials, and also with the intention to build relationships with key decision-makers.
Make sure you get to know the people who are responsible for hiring courier companies at the companies you want to get cargo van contracts from.
Apart from that, you may also consider joining local and national logistics and cargo van associations to gain access to networking opportunities and resources.
Build Business Relationships
All you need to do is visit these companies with your marketing materials and ask to see the logistics and transportation managers and the company’s administrators.
Once you get to see them, your intention should be first to build a relationship before telling them why you are there to see them.
Market Your Services
You cannot win cargo van contracts without deliberately marketing your services. In essence, if you want to get cargo van contracts from healthcare facilities, laboratories, pharmacies, clinics, and other healthcare providers, then you must go all out to develop a targeted marketing strategy to reach healthcare facilities in your area.
When developing your marketing strategy for your cargo van services, you must make sure it covers online advertising, direct mail, cold calling, etc.
If you are new to developing a marketing strategy, you may want to consider contracting this aspect of your business to a business consultant who will help you create a workable marketing document.
Monitor Requests for Proposals (RFPs) and Bids Opportunities
Many companies put out bids for cargo van services on a regular basis. You can find these bids on government websites and industry publications.
One good thing about requests for proposals (RFPs) and bid opportunities is that they are made available to cargo van companies that are interested and your ability to meet the bid requirements will give you the chance to win the contract.
Part of what will give you an edge is to ensure you emphasize your adherence to industry standards, and your ability to meet stringent requirements for handling goods and materials.
For example, you could offer to track shipments in real-time or to provide temperature-controlled transportation. You may also want to highlight any unique services or technology that sets your cargo van company apart from the competition.
Form Strategic Marketing Alliances with Other Players in Key Industries
Basically, a strategic marketing alliance is a cooperative partnership between two or more businesses to achieve shared marketing objectives.
These alliances involve the sharing of resources, expertise, or distribution channels to increase market reach and effectiveness.
By collaborating, businesses can access new customer segments, enhance brand visibility, and create mutually beneficial opportunities.
Such alliances often focus on complementary products or services and can lead to increased market competitiveness and growth.
Good enough, there are opportunities for cargo van companies to form strategic marketing alliances with other players in the courier, transport, and logistics industry.
For example, a cargo van company can form a strategic marketing alliance with a courier company that doesn’t engage in cargo van services.
If the courier company gets a cargo van contract or is asked to recommend a cargo van company, your company can easily be recommended.
Get Your Drivers and Other Employees Involved in Marketing Your Services
Just ensure that you create provisions for your employees to earn a commission when they bring in business (contracts) for the organization if you truly want to motivate them to help you win cargo van contracts.
You can also create a business model that will enable freelancers to work with your organization as it relates to bringing in cargo van services contracts; whenever they refer clients to your organization, they will earn a percentage of the deal.