The Conversation I Have Most Often with 3PL Owners
The Conversation I Have Most Often with 3PL Owners
The Conversation I Have Most Often with 3PL Owners
Vikrant Neb

If you sat in on the conversations I have with 3PL owners — at IWLA, after webinars, on consulting calls, in their warehouses — you'd hear the same few things come up again and again. Different cities, different sizes, different services.
Same conversation.
The first thing that comes up, almost without fail, is cost.
Owners feel nickel-and-dimed by their customers. Storage rates pushed down. Receiving fees argued over. Outbound charges questioned line by line. The frustration is real and I understand it. I have made the case publicly, including on Bob Byrnes' podcast, that brands also need to understand the cost structure on the other side of the invoice. There are real reasons a per-pallet rate is what it is.
But that is only half the conversation.
The other half is this. If the market rate for storage, receiving, and shipping is fifteen, fifteen, and fifteen, and you are pricing at ten, ten, and ten, somebody is always going to undercut you. They might have free space they're trying to fill. They might be a former warehouse supervisor who just started a 3PL and doesn't yet know what it actually costs to run one. Both happen often in this industry.
You cannot control that. Trying to win on price against people who do not know what their own numbers look like is a losing fight.
So the deeper question, the one I try to move every owner toward, is not "how do I justify my rate to a customer who wants to argue about ten cents." The deeper question is "how do I build something my customer cannot get from a price comparison."
One client of mine, a 3PL based in the US, was stuck in exactly that loop. I asked him a different question. Who are your customers, and where do you find them? He told me. All domestic. All chasing the same brands every other 3PL in the region was chasing.
I asked him why he wasn't looking outside the US.
He didn't follow. So I walked him through it.
There are brands and businesses all over the world doing well in their home markets that want to enter the US and don't know how. Freight forwarding, customs, company setup, CPA, banking, warehousing, last-mile — they need all of it. A 3PL inside the US is already the natural base for that customer. The warehouse becomes the anchor, but the offering becomes a platform.
He tried it.
Over the next two years, the business tripled. Same operation. Same team. Different customer, different value, different conversation about price. Those customers do not nickel-and-dime, because they aren't shopping a rate sheet. They're buying access to a market.
That is the kind of mindset shift I keep pushing on. Not a new pricing model. Not a new service line bolted onto the old one. A different way of thinking about who the operation is actually for.
The second thing that comes up almost as often is people.
We cannot find good team members. We cannot get the floor to follow the process. We cannot streamline operations. I hear it everywhere.
And underneath most of it is a smaller problem that is harder to say out loud. The owner is not thinking far enough ahead.
Some operators only live in today. Every decision is a reaction. Every hire is a fire to put out. Every system is a patch.
Some operators only think about the future. Big plans, no execution, the present neglected.
Neither works.
The job is to hold both at once. What can I do today, what can I afford today, what hire makes sense today, what system can I put in place today — and at the same time, what am I building toward, what does the operation need to look like in two years, what decisions today will make that version possible or impossible.
The people problem is rarely a people problem. It is usually a planning problem wearing a people problem's clothes.
So those are the two recurring conversations. Cost, and the future. And the version of the conversation I find myself having most often is some combination of both. The owner who feels squeezed on price and can't find good people is usually the same owner who hasn't taken a step back to ask whether the operation they're running today is the operation that will still work two years from now.
That step back is the work.
If you sat in on the conversations I have with 3PL owners — at IWLA, after webinars, on consulting calls, in their warehouses — you'd hear the same few things come up again and again. Different cities, different sizes, different services.
Same conversation.
The first thing that comes up, almost without fail, is cost.
Owners feel nickel-and-dimed by their customers. Storage rates pushed down. Receiving fees argued over. Outbound charges questioned line by line. The frustration is real and I understand it. I have made the case publicly, including on Bob Byrnes' podcast, that brands also need to understand the cost structure on the other side of the invoice. There are real reasons a per-pallet rate is what it is.
But that is only half the conversation.
The other half is this. If the market rate for storage, receiving, and shipping is fifteen, fifteen, and fifteen, and you are pricing at ten, ten, and ten, somebody is always going to undercut you. They might have free space they're trying to fill. They might be a former warehouse supervisor who just started a 3PL and doesn't yet know what it actually costs to run one. Both happen often in this industry.
You cannot control that. Trying to win on price against people who do not know what their own numbers look like is a losing fight.
So the deeper question, the one I try to move every owner toward, is not "how do I justify my rate to a customer who wants to argue about ten cents." The deeper question is "how do I build something my customer cannot get from a price comparison."
One client of mine, a 3PL based in the US, was stuck in exactly that loop. I asked him a different question. Who are your customers, and where do you find them? He told me. All domestic. All chasing the same brands every other 3PL in the region was chasing.
I asked him why he wasn't looking outside the US.
He didn't follow. So I walked him through it.
There are brands and businesses all over the world doing well in their home markets that want to enter the US and don't know how. Freight forwarding, customs, company setup, CPA, banking, warehousing, last-mile — they need all of it. A 3PL inside the US is already the natural base for that customer. The warehouse becomes the anchor, but the offering becomes a platform.
He tried it.
Over the next two years, the business tripled. Same operation. Same team. Different customer, different value, different conversation about price. Those customers do not nickel-and-dime, because they aren't shopping a rate sheet. They're buying access to a market.
That is the kind of mindset shift I keep pushing on. Not a new pricing model. Not a new service line bolted onto the old one. A different way of thinking about who the operation is actually for.
The second thing that comes up almost as often is people.
We cannot find good team members. We cannot get the floor to follow the process. We cannot streamline operations. I hear it everywhere.
And underneath most of it is a smaller problem that is harder to say out loud. The owner is not thinking far enough ahead.
Some operators only live in today. Every decision is a reaction. Every hire is a fire to put out. Every system is a patch.
Some operators only think about the future. Big plans, no execution, the present neglected.
Neither works.
The job is to hold both at once. What can I do today, what can I afford today, what hire makes sense today, what system can I put in place today — and at the same time, what am I building toward, what does the operation need to look like in two years, what decisions today will make that version possible or impossible.
The people problem is rarely a people problem. It is usually a planning problem wearing a people problem's clothes.
So those are the two recurring conversations. Cost, and the future. And the version of the conversation I find myself having most often is some combination of both. The owner who feels squeezed on price and can't find good people is usually the same owner who hasn't taken a step back to ask whether the operation they're running today is the operation that will still work two years from now.
That step back is the work.
Similar Articles
Similar Articles
Similar Articles
See All Hosts
See All Hosts

3PL & Logistics
The Question I Wish More 3PL Owners Asked Themselves

Vikrant Neb

Supply Chain Management
The Conversation I Have Most Often with 3PL Owners

Vikrant Neb

Strategic Consulting
Why I Wrote Execution Under Pressure

