Real life example of Load Boards and rates.

Thank you @Chinatown. This is very useful information!

 

I am going to be getting started as an owner operator beginning next month, I kinda think I like truckstop load boards, little but pricy, but seems to have decent features, including going rates for the runs they have up? Any body have any thoughts on that board?

 

I use the 2x rule when negotiating with brokers.

They tell me $2500, I tell them $5000.

They say $3500, I say $7000.

Four times out of 5, we usually meet somewhere in the middle.

One out of five, they agree to my ridiculous rate.

On Friday evenings, depending on what time zone the broker is in, I call in a load about 30 minutes to 1 hour before they go home... I use the 3x rule... they say $1500, I say $4500.

50% off the time they meet me half way, say $3000

The other 50% they usually pony up the cash, entire $4500.

This tactic works best at large brokerages.

Now be brave, and go out there and get your $5 per mile loads!

 

The negotiation skills needed are equivalent of those found at a flea market. I don't care what your negotiations skills are where you are in a dead-hole like Cheyenne and hope to get out of there for a decent rate. Before I got my own MC# I read things here on on this forum, I listened to K.R show - yeah - reading books on negotiation and sales was one of his main motives - but in the end all that theoretical staff is completely unapplicable to say the least. In reality, it is the learning and experience acquired on your own that helps you become a smart fox. With time and a load board observations you notice, for example, that at some point there is a lane that one broker has out of Joliet, IL going to Ankeny IA, and that comes Friday 1-2PM they are getting into a desperado mode - that just raise their posted rate by a few hundred and then you call demand 150 more they typically agree for only 50 more but still that makes the trip worth it and deadhead out of there on Saturday morning is even a pleasure not a problem as you average more than 2 dol/mile round trip. There is another one out of Columbus, OH (but only on certain days) going back to Chicago area - at some point they are ready to give it for $800 which is awesome, considering deadheading back home sometimes out of there. But It takes time, some repetitiveness and ability to observe load board patterns, also it is good to have some judgmental skill and recognizing the behavior of a broker; their previous ability to pay on the same lane etc. In the end, however, all that freight that ends up posted on a loadboard is a subject to freight market forces and if there is plenty of trucks on a given day in Columbus, OH at 3 pm there is not way they will pay you $800 to go back to Chicago.
Perhaps, it is good to inform other folks that they can be paid more on a given lane, but if that lane is the lane that you rely on then of course you worry that they will undercut you, especially when you get into specifics of who the broker was, so general rate guidelines should be discussed but you never tell anybody who pays you. For instance, it is great to discuss things such as: going from Chicago to LA for less than $3000 now is plain stupid (you compete with intermodal business) as you can take 1100 to Omaha, NE and from there grab something for 2900 - 3200 to LA.

 

Lmao tell the one about the cow jumping over the moon now

 

Such a great thread already. So much for us new guys to learn.

 

My experience is that for starters CH Robinson is the best. In my first 6 months, more than a half of my assignment were from them. You don't need to worry that you don't get paid. If low on cash, you can utilize their quick pay. But they are not very generous with their rates, if they don't have to be. They seldom play mischievous games such as getting you on a "work you in" load, but it can happen too. I'd sign up with Convoy too. I don't know how many months do they require, but less than 6 months for sure. They are paying quick for free, and you are using their app, where you can bid your desired rate. This way with Convoy, you can bypass all these little "you are a new MC, so I 'll pay you less" games. They (Convoy) can be generous sometimes too. The checks are always on time and good. I really recommend them for new starters.
It is almost certain that at first, a new carrier will have tendency to be too modest and agree to modest rates, and the rate averages seen on DAT, or examples given on this forum, may seem unattainable. With time though, past 6 months mark - more or less, it will improve somehow. Especially, it is discouraging to start in the first quarter of the year when not only you are a newbie but the rates are naturally low. So the best time to get the authority and become active is in May, by the time the cycle goes to its low, you are established well enough to call some brokers directly, bypassing the loadboard. I would not be cheap with paying for loadboards, either. $150 for DAT Power is giving you very clear and responsive interface and $150 should be just dimes and nickles of the expenditures in the overall scope of things. It is enough to have access to one loadboard. In addition: CHR has its own. Coyote have their own, JB Hunt have their own, so do many others, but their general appearance and easiness to work with may be not be as good.
I would not want authority for one truck/trailer show, if I could find a carrier to let me pick and choose my own freight for about 10-15 % of gross. The paperwork, insurance cost are not needed distractions, unless you want to grow a fleet and become a JB Hunt in 10 years.
Landstar, I did consider, but at the time they required Hazmat and....ELOGS which did not seem too appealing, so I went all the way on my own.

 

Be careful though.........You can really make yourself look like a horses ### doing this tactic- Especially when your not even "close" to market- You'll never develop relationships either with this kind of tactic...

Believe me,I dislike Brokers as much as the next guy..But When you are truly in a pickle- They'll remember you with your Novice style Freight negotiation.

Will it be worth it in the long run winning 1 out of 5 negotiations? Not really.