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Market forces keep my dream car , just that ... a dream |
Today, I would like to submit my theory as an answer to a statement that I hear often from my fellow drivers. Many times in the trucking industry drivers seem to have their own perception as to how much they are worth. This very perception is often one of the forces at play in our industry.
I will begin with the definition of a “Market”:
a place where products are bought and sold
: a store where foods and often household items are sold
: an area (such as a country or part of a country) where a product or service can be sold
The trucking industry, in itself, is a market. The product is translated into the service of transporting freight from one destination to another. This can be compared to any market whether it is automobiles, food or another product or service. Now that we understand this, we can move onto other forces at play.
Another force we can look at is “Value”. Here is the definition:
: the amount of money that something is worth : the price or cost of something
: something that can be bought for a low or fair price
: usefulness or importance
Value can be perceived in many ways as one person may feel they have received a bargain for their purchase or service. Another person may place a higher value on quality of service. A seller may put value on what he or she should expect in return for the amount of money/time invested in the product/service that they are providing.
Let’s take a look at “Force”. Here is the definition:
: physical strength, power, or effect
: power or violence used on a person or thing
: strength or power that is not physical
Force is the combined synergy of many factors that lead to the final sale price of goods or services. At the end of the day, it’s a balance between operating cost, truck/load availability; driver supply and customer demand that truly determines the end price.
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Market " value" can change rapidly as "needs" change. |
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I will use a personal example that has become an ongoing conflict in my own personal life. Within the last few years, I have been seriously considering purchasing a car that I have wanted my entire adult life. It is an early 60’s model Corvette Stingray. The issue I’m having is justifying the cost vs the value to me. In fact, it would be blue with a beige color interior. A big or small block power plant would be acceptable. A four speed manual transmission feels like a prerequisite to me. Knock off hubs and four wheel disc brakes would be a nice bonus. In reality, I wouldn’t even care if it had a radio as I would enjoy listening to the symphonic orchestra of this early American V-8. However, if I happen to own this Corvette of my dreams, its value would drop significantly if I was stranded in the middle of the desert and needed the simplest of things…water, to survive. In a life or death situation, the water would have a higher value than the car of my dreams.
The point I’m trying to make here is that it’s very important to know your market and the forces at play. Even more important…you should be aware of your value to the people you serve. May the force be with you as you attempt to be at the TOP of the market.