Small carrier: How to get a direct customer & skip the broker.

Discussion in 'Ask An Owner Operator' started by Flipflops, Feb 3, 2016.

  1. Flipflops

    Flipflops Heavy Load Member

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    If you are a small carrier 50 or less trucks, or if you are a one man operation, I hope this will help you get rid of the "middle man" if you're not happy with current broker rates.

    First it all depends on your size as a carrier. Are you a small carrier with only company trucks, or have owner operators leased onto you, or are you just 1 man army?

    This is very important because you want to pursue a direct customer that you will be able to cover freight for.
    I'm ASSUMING most of you guys and gals on here are a one man army.

    1. You want to find a shipper in your local area. But a particular type of shipper. This is very important!
    • Go around a 50 mile radius of your location, and drive through the industrial parks/industrial avenues.
    • Takes notes on a piece of paper of every company/address that has up to 4 docks (or so) that you see..
    • Go home, and do research on these companies, find out what do they ship!! How long have they been in business for, and maybe even tho credit background?
    The reason you want to do a 50 mile radius is because well, duh, this is your outbound load, this is your "home run". The reason you want to take notes of every company that has up to 4 docks (or so) is because obviously they ship/receive but at a smaller number of shipment, which you might be able to handle. Typically companies like this use fedex/ups etc and pay a lot of money! Just go on a fedex website and see what they would charge for a pallet or two. Chances are not many brokers want to work with these companies because of the volume they ship is low, and if a broker does want to work with them, chances are they charge them a lot of money because of the low volume. And obviously not many carriers or owner operators pursue ANY guys for that matter. But it's like a diamond in the dirt if you ask me!

    The reason you wanna do some research on these companies which may even include verifying credit, is because this is how you will KNOW what they typically ship. It might be lenses for lasers, water based lubricant for some machinery place, too many things to name, but with your research you will find out what:

    Personal experience: Ingredients for viagra. (LOL), air conditioners, cables for head phones,etc. These always go to direct customer, no dc places. Friendly people on both ends. Light loads mostly.

    2. How to get these customers? Don't go in PERSON to just ask if they need help shipping. Sure it may work with some customers, but you want to get used to being a professional, as you should be.

    • Have a company resume! Yes, a resume! Make a resume with all your trucking experience, and make it a good one!
    • Have a cover letter! Make sure you state what your goals are: working direct!
    • References! Get some references one way or another. Dispatch service? Dispatcher? Driver? You name it, but list 3-5.
    • Attach your "set up" packet that shows your authority, insurance, and so on.
    • Attach a business card in the corner. Very important.
    To do a great cover letter for this, you can't sound like a robot, you must add a personal touch to it. Be short and pursue the person into wanting to check your resume. You cover letter must make them curious, and the resume must make them interested, and your references must make them feel comfortable to give you a call or an email to discuss further things: rates/lanes/etc and so on. You want to add your authority (set up pack) so they know they are working directly with you, as you say you are, and not a broker, or who knows what.

    You want to put all these into a nice yellow envelope, and dress casually, not crappy, not over the top. Go to these places and tell the front desk personnel that you have a important message for who ever is in charge of shipping, and can they please make sure that person receives it! This isn't a 100/100 working way, but it is 70% for sure to get a direct customer!

    Now the ones that do contact you, this is ALL UP TO YOU, what did you promise them? Payment terms? Rates? How many shipments? All these things. Depending on the size of you as a carrier you can look for places with more than 4 docks.

    YES-- this takes a little extra, but after all who needs a broker to find you freight?
    If you are looking for direct freight and don't know where to start, there goes my blue print on how to get this freight!

    If you want to be creative, and out of all those places you go to, you suddenly have some serious customers, pull your buds, drivers, lease them on. Take care of the customer just like they take care of you. Promise them when rates do spike up, they will pay the same, only thing that will ever change is FSC and stick to it!
     
    RubyEagle, annw, Tb0n3 and 65 others Thank this.
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  3. mp4694330

    mp4694330 Road Train Member

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    Great info, really appreciate!
     
    Flipflops Thanks this.
  4. rda2580

    rda2580 Heavy Load Member

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    Hey Flipflops if you land a direct shipper, how do you determine how many more you will need, to get a decent load? Is it always a work in progress to maximize your profits as far as destinations and any possible backhauls?
     
  5. Flipflops

    Flipflops Heavy Load Member

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    You discuss rates first with the shipper. Some may be so cheap it's better to say you will see what you can do, but not do. Some shippers will pay you a premium but have expectations. Updates, on time service, friendliness etc. For backhaul a use a load board. Your main income should be coming from the direct customer: $3200 on 900 miles. Coming back let's say you take $1100.. Take it if you can't find better to get back for another shipment. Sometimes even deadhead. This is why rates and pricing can only depend on you. If a customer tells you every Monday he has a shipment from Chicago to miami... Wants to pay $5,000. This means every Monday you want the truck in chicago because that $5000 is your money maker. Will you dead head out of FL? Take .90 cpm? That's your choice. But you should pursue as many customers as possible. You may go after 5 but none respond and you may go only after 3 but they all respond.
     
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  6. Flipflops

    Flipflops Heavy Load Member

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    Also typically these shippers will let you know their freight up to a month in advance. Weight destinations etc. The more shipments you can take off his list the better it is for him. 600 mile shipments with 2-3 days to play with on delivering, you pick one monday, take one for wednsday and Friday. Let's say all these are $1600.. You have guaranteed $5400 in gross, on Tuesday and wednsday take back rhe crappy loads brokers have for $800. That's $7000 gross on 3k miles and home for the weekend. Now it may pay more or whatever but that's just an example. Next week you'll take 2, and flip flop, which means you're covering 10 of his loads a month. If you have more trucks you can do 20. If the particular shipper has 30/month you're now doing 66% of his loads. Remember this is why you're going for the small shippers.
     
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  7. rollin coal

    rollin coal Road Train Member

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    Great info. Keep it coming. I know there's a lot of us out here that are sick and tired of the constant broker games. Tag @BigBadBill on this one. I particularly like your idea in another thread offering to cover the first load for any potential prospect for free, then discuss rates on future business, as this gives them a chance to size up you, your equipment, your promptness, courtesy, etc.

    Like you said a one time deal possibly spending $600 or so in fuel and misc expenses to open up the door on a solid business relationship. I would rather do that than haul 90 cents a mile for some chump broker out of Florida. I'm not saying I'm above doing that coming out of Florida but one has value and one is just wham bam thank you mam, no future in it at all, you know?

    And this is not to just toss all brokers under the bus either. Because those relationships are also important and have value. You know your really short list of them that are people of their word and integrity? Unlike 95% of their bretheren.
     
    Last edited: Feb 3, 2016
  8. Flipflops

    Flipflops Heavy Load Member

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    Thanks @rollin coal .

    If I had over millions at my disposal I would grow a big carrier with a great system that would work for everyone but I don't have that disposal.

    I think a lot of guys can get direct shippers, it just matters of how big of a fish you're after, and how big of a boat you have for that fish.

    Too many are concerned about "cold calling". Then there are guys who go direct without a business card. If you are running a business besides knowing your numbers, and your tasks there are also big important things such as closing deals, getting deals. This is where many fail. Show a customer what you can do for them, and even if they paid a little more, look at the benefits they get in return. Make a calendar with your trucking company on every month, give it for free. Send cookies to the firm, star bucks cards, etc once in a while. Show them your appreciation and your service should be top notch. No broker can compete with that. Sure there are extremely cheap and arrogant shippers, but there are a lot of good ones. All it takes is some professionalism, great A + service, communication -- then let cookies/ coffee gift cards, etc show appreciation.

    Too many think of "me me me", hey, find what the shipping manager's favorite team is, and buy him 2 tickets. These are relationships many carriers fail to develop with customers. Mostly because they don't even know how to start them.

    I think it's time for guys to smarten up, think outside the box and become real carriers and not someone who bought themselves a job. Any help I can offer or knowledge I try.
     
  9. rda2580

    rda2580 Heavy Load Member

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    Good advice again Flip! No pun intended but basically the same plan for finding properties to flip from Banks and Realtors.
     
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  10. Flipflops

    Flipflops Heavy Load Member

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    Basically! I always been the type I got to see it before I buy it, and that includes anything, business, females, etc. Lol
     
    mp4694330 Thanks this.
  11. RGN

    RGN Road Train Member

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    Good job, @Flipflops! Life is so good working with shippers that are happy to see you.

    I'll throw in a simple web site with a quote form & your contact info has worked for me. Make sure you can keep up on it and respond back within 24hrs. The email with your domain looks really good to potential customers. Yesterday I had a RFQ (request for quote) through my site from a shipper for 2-3 loads a week indefinitely, didn't work for me but someone is going to be able to negotiate a nice deal and that equals peace of mind, regular income, & you get to shake your head like me when you hear "brokers suck, we should strike!".

    I digress, but one of my favorites with the web site is when brokers contact me- I start with "are you set up with us? would you like me to send you a credit pack so you can pay net-30? we offer a 1.5% 'quick-pay' discount for pay-at-delivery....". I always giggle a little with that one.
     
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