How to deal with brokers

Discussion in 'Freight Broker Forum' started by texasmorrell, Jun 13, 2013.

  1. texasmorrell

    texasmorrell Medium Load Member

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    This is an age old question and everyone develops their own technique honed over years of experience. I myself settled into a method of treating brokers like bass. What does that mean? It means I approach the process of looking for good paying freight the same way I fish.

    First, all loads on the load board are good loads as long as the pick up, drop off, weight and commodity meets your needs. Never, ever dismiss a load simply because of the price a broker gives you. They are not in control, you are. Do not relinquish control to them by accepting their first low bid offer.

    Second, organize the loads on the load board by broker name after you have entered your parameters. Now this is where the fishing begins.

    Step 1. Call the broker at the top of the list. Let him go through his speech about the load.

    Step 2. When he has finished tell him you would like to do the load but that rate is too lean for you, then tell him what your rate is. If he comes back and asks you if you would be willing to meet him in the middle, say no, stick to your guns, you are in charge not him. If you say yes you have just lost control.

    Step 3. Ask him to take down your name and number and the rate you quoted him. Tell him, no problem, you understand his hands are tied, but if the customer decides to meet your rate, they have a truck.

    Step 4. Very important, let it slip that you are in no hurry, you are at home on the couch relaxing, so he can take his time.

    You have now baited your first hook and set your first line in the water. Now you play the waiting game, just like real fishing.

    A few things to remember. Always be courteous, polite, and friendly, no matter how ridiculous or offensive their first offer was. No need to be upset because their first offer means nothing. Remember, you are in control, not him. Also very important, do not call the broker back for any reason. Once that first conversation ends, if you ever talk to him again about that load it will be because he called you. Make him chase you and make him work for it.

    Now repeat all of the above with each and every broker on your load board list. If you end up calling 10 brokers, you now have 10 baited hooks in the water. Any true fisherman would like those odds.

    Also remember, if its before lunch do not expect to get any bites. You will probably get some nibbles, but do not expect any hard strikes. After lunch, as the time draws closer to shipping departments shutting down for the day, is when the fish start to get truly hungry and are willing to take a chance on that worm they have been swimming around all day. This is because they have promised their customer they would find them a truck that day and get their freight moved. A broker knows it is better to call a shipper and tell him you found him a truck, but at a higher price, then tell him he completely struck out and failed to do what was promised.

    What if you get no bites that day you ask? Well, lets think about that. What did you miss out on? Low paying, heavy, trash freight that will make you burn fuel and wear out your truck with no money left over to pay the truck for her troubles. Let those losers take that garbage. Unless you are in a truly terrible area you will find a load at a decent rate. And if not, well you should have already locked in a good return rate on the load that brought you there. Put it in gear and get out of there. Put that deadhead fuel on the next load.

    Remember, do not be your own worst enemy. True fisherman are patient and methodical. Be a fisherman and not a guppy. And remember, if you want rates to go up then be willing to teach every driver you talk to how to fish. As long as the newbies are out there chumming the water, they will make it harder for the rest of us true anglers. Make them anglers too.
     
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  3. LSAgentOZR

    LSAgentOZR Road Train Member

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    I agree with all but this area. It's not necessarily good practice to do this with your customer. Why? Because just as with other trucks on your side, I have competition to deal with as well and they may have access to different trucks that will take the load for cheaper. Then the customer quits coming to me for a while... or even all together. It's better to negotiate, come up with a rate that works for both of you and get the freight moved. I'm not out to get rich off one load, but I'm not going to give away all the money or pay you out of pocket constantly just to move the freight. That would be counter productive to me making a living.

    You make some good points though. Keep up the good work.
     
  4. jinxutoo2013

    jinxutoo2013 Bobtail Member

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  5. texasmorrell

    texasmorrell Medium Load Member

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    My point was that IMO its better to offer the shipper something before the end of the day and let them make a choice. If they say no to the truck then the shipment really did not need to move that day, now did it? At least they know you performed your due diligence and that means a lot.
     
  6. rollin coal

    rollin coal Road Train Member

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    Yeah a lot of times brokers don't even go to the customer. It's just click and that's the end of it. And you don't want to hammer your go-to brokers that pay good rates whenever they call.. ..for the most part when everything is busy, I will try to help those brokers out here and there when I can, but I will never gouge them like I will random brokers..

    I'll tell you another good way to fish. Yesterday afternoon we got back to the house at about 16:30 after swimming most of the day. So I decided to check the boards and see if anything interesting was there. Saw 2 loads posted by a brokerage I have worked with on one load, and it was a grand slam of a rate. So they're not really a go-to brokerage, actually they were a mega, the kind who plays the ups and downs of the market so well. The load was less than an hour old and the rate was on it, which was unusual, it was $2,000... ..it went to a dead zone for reloads but the rate was awfully close to good enough..

    So I put my hook in the water. This load went to a place I never go to. So I posted my truck up and put the states I'd like to go to, excluding this one... ...and I waited. if they called me up, then that's good, we can talk... If not, well, I didn't want to go there anyways no real loss..

    So the phone rings in about 10 minutes, broker explains the details but never mentions the rate. I already knew what was posted and mentioned to him the specifics of where I was looking to go....... He listened and then asked that question I always love to hear, what would you need driver? And so I quoted him $2,500. He hemmed and hawed "I won't make any money off that can you come down any" and I said nope that's my rate the offer stands firm. He said give me a minute and I'll call you back.. Called me back about 5 seconds later. Says can you at least do $2,450 if you do we'll do quick pay without taking a cut... ...I said nope I'll get paid on Friday regardless the rate is still $2500.. He said, uh, ok... Score!! Now if I'd really wanted to play around I would have increased my rate every time he tried to get it down. But $2,500 made me very happy.. And so about an hour later I was on my way..

    And then today for a reload, sure enough it is a deadzone within 150 miles.. But I found something with a decent rate 285 miles away that routes thru the house. Not a great rate but good enough. My only mistake was I booked it this morning around 10am.. ..cause as you say texasmorrell the rates are never all that good until after lunch, sometimes even as late as 4 or 5pm.. But it met my requirements and I am happy with it. In fact it was $100 over what I considered the minimum that would've made me walk away.. ..the first offer was at my minimum. They had me they just didn't know it.

    The truck always sets the rate.
     
    areelius, LSAgentOZR, Big Jay and 3 others Thank this.
  7. RedForeman

    RedForeman Momentum Conservationist

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    I agree with most everything you posted. On the other hand, even the best customers aren't really your friend. They'll nudge you in a second and you'll never know it. This week the spot market has been hopping and it seems like the more fickle I get with them, the more they're giving up.

    Oddly, me and mcgoo were discussing this topic just yesterday. Much of it not family friendly, but the gist being to set a tiny hook of interest then play hard to get. It's a gamble that depends on you having a solid reputation (they want you versus an unknown random carrier), along with being clear you don't need the load, don't want to be in the destination, and would just as soon move out of the shipper's area MT. As long as the lane is not ending in major markets, you can pretty much name your price within reason. But it takes a little work, some patience, and the nerve to sit it out or bounce at the right time.
     
  8. rollin coal

    rollin coal Road Train Member

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    Yeah that's true. Lost count of the times I've been dropped off of some freight that I'd covered consistently. Always because of price. Only have one contact who isn't concerned with whatever I charge, and happily pay, cause they know what they get.. ..unfortunately their stuff is down. That's all fine and dandy but honestly there's nothing funner, I'm sure you know what I mean, than really ripping these rates upwards and setting things how they ought to be when situations allow it. These market players move most of this freight below true costs like it's nothing for half the year or more. OP was a very good post, spot on, was surprised what was inside til I opened it.

    Playing interested is another good tactic btw. I openly tell almost every broker I speak with, "go ahead and shop it, call me back later" or "I'm advising you now you will probably want to shop this" my intention there to elicit the magic phrase "what will it take driver?" In conversations such as that who is in control of things? I've taken the smartest alleck sounding Chicago Central CHR agents and turned them meek in a few quick words. Of course trucks were scarce. But that stuff right there gives me my kicks moreso than anything.

    Sent from my droid using Tapatalk 2
     
  9. trees

    trees Road Train Member

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    Excellent post. A great strategy to use in those tough markets we all find ourselves in from time to time. I also thought that Adam's reply, from his perspective as a broker, was also good. I find myself negotiating rates in a give and way with good brokers, and even sometimes with not so good brokers.... But your overall theme of "being large and in charge" was excellent. I think too many drivers allow themselves to be bullied....
     
  10. trees

    trees Road Train Member

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    I'll always say "ok" if they get within $50, but then I always give myself some "head room" too....
     
  11. trees

    trees Road Train Member

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    Nailed a fat rate the other day using your approach, told them I was tired, only called out of curiosity, didn't want to go to the destination but called just to see where they were with their rate, and ended by saying, "I think I'll just make this movie night"..... They called back less than 5 min later.....
     
    RedForeman Thanks this.
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