Crazy corrupt story #2: I'm still the DSM in the Twin Cities and I get a call from my Regional VP of Sales in our Chicago-area offices letting me know that one of our sales reps in Temple, TX went "dumpster diving" in a competitor's dumpster and retrieved a green-bar printout of their top accounts, complete with tonnage and revenue. This right here tells you everything you need to know about the LTL trucking industry. Nonetheless, this is a veritable gold mine, and Art promptly starts riding my ass about an account that's serviced by our Watertown, SD operation that ships a LOT of product with this competitor. I got lucky as I happened to know all about this company and what a corrupt scumbag they had as a Corporate Traffic Manager, so I kind of fired back at my boss.
"Sure. Know all about them. They operate on a 3-year old rate base, discounted at 63% off of those three-year old rates, and the competitors bill it as FAK 50 rates (the lowest revenue per 100 weight possible under the rules of the day). So this stuff is moving from point A to point B really, really cheap, and if we were to beat those rates and secure some business from these guys, it would show up on our Profit Improvement Program (PIP) reports in the 2nd month, and our Economic Analysis Department will be sending me their new rate base, discount % and rate classification and expecting us to go in and sell that new pricing and retain the business. But wait, there's more ...
In addition to the crummy pricing on the account, the guy is a freight whore. You know those fancy, custom Winnebago's that (COMPETITOR #1) has for hauling customers to their entertainment events? Well, they simply parked one out there for his personal use. And they only haul 1/2 the LTL freight. The rest of it is hauled by (COMPETITOR #2), and since they don't have these "party buses" like the other guys do, they fly him up to Canada once a month to go fishing and make sure "Agnes Thunderblanket" is in his hut to keep him warm at night.
So what's our move here, Art? I've got unprofitable business that will cost me more than my entire $25K quarterly entertainment budget to secure and maintain. Going at this from that angle seems like a sure loser. I've got another idea.
Art: Go on. I'm listening.
Me: Well, it's no secret that the trucking industry has an affiliation with the Teamsters and most of these guys know a mob guy or two. So rather than pissing away $25K per quarter to haul unprofitable freight, why don't we pony up $10K and have the sonofabitch shot. It'll save us a bunch of money in the short and long term, and it's really going to put Randy on the map out there in SD. Word is going to get around pretty fast out there that when ABF comes to call, you'd better God damn well listen.
Art: (nothing - just the sound of the long distance lines "hissing" (analog days) ). After about 15 seconds, he finally breaks the silence and says, "Jesus Christ, LHR. I hope you're kidding. We can't do that."
Me (somewhat disappointed that I don't get to kill the guy): "Of course I'm kidding. And now that you know the whole story about these guys, I hope you're kidding, too about wanting Randy to go secure that freight. It's bad business, Art."
He agreed, thanked me for knowing what was going on in my territory, and promised that he'd never, ever call me again on something like that, then hung up.
Art remained a mentor and I considered him a close personal friend long after leaving the company and the business. Truly one of the good guys from that era. He went on to become the VP of Sales for the entire company before retiring in 2007.