When I started into the trucking business under my own authority a couple years ago I had the idea I would primarily run for a few brokers or customers, I would bend over backwards to earn their confidence and occasionally help them out with bad loads to keep the wheels greased. This was sort of old school logic based on O/O's I had been friends with over the years plus a bit of common sense.
I found the reality of broker/owner-operator relationships to be quite different. In general, occasionally I would haul a load cheaply just to get from one decent load from another, these brokers would be keenly interested in forming an ongoing relationship with me and would offer me all kinds of loads from IL to FL for $1.80/mile. But for some reason when I got a decent price on a load I would never hear from that broker again. It's like I broke their phone.
It's almost like the broker's know what the cheapest rate for any lane is, and if you beat that, they don't want to hire you again. It's almost as if they call you again you did something wrong. Well, I had to laugh someone posted something on here awhile back about a load they were offered in FL. This person claimed they were offered this rate because they had hauled a few loads for this broker and had "earned their trust". And they even posted the brokers info ! Well, sorry friend, but I recieved the same email, and although I have hauled for the same agency ONCE, I have never hauled for the same broker, and certainly never developed a relationship. I don't know how many cheap loads you think paid for this profitable offer, but I am telling you I had the same offer, just didn't have a truck there and no different from the other profitable offers I recieve from not wasting my time building "relationships".
Hey, I'd love it if it were still 1950 and that is how you build a business, I do think there is something to be said for pressing the flesh and all that. But some of you schmucks are falling into a trap of hauling 90%crap for %10 cream. That's not a relationship ! you're being duped ! stop it.
relationships - a thing of the past ?
Discussion in 'Freight Broker Forum' started by dannythetrucker, Nov 16, 2013.
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53STEP, Criminey Jade, sanook and 2 others Thank this.
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A few things come to mind about this.
I think your expectations on a good broker or shipper relationship are set too high to begin with. Having a personal rapport will keep you closer, potentially earning more and better offers. But it's no guarantee. The real value is being a known, good service provider. To me, that puts me at the top of the call list when an important, often better paying spot load becomes available. On the 95% of their other loads, I never expect that. They know my trucks don't have Goodwill signs on them and they don't get butt hurt if I say no. Many times I will get on the phone with them and nothing comes of it. Either they don't have what I want or I'm not in a position to take an offer, and we leave it for next time.
A relationship doesn't exist until I have hauled several loads over many weeks or months at a profitable rate, and with adequate broker support and no BS. I'm sure it's the same in reverse. This usually coincides with them calling me looking for my trucks. Even then, it may not be often. I have one customer that I truly enjoy chatting with. Problem is, they are a medium size carrier and apparently are used to setting rates for their leased operators. That doesn't work for me. He gets it and doesn't get hurt feelings when I tell him no a lot. Likewise, I don't take it personal when he makes a low offer that I turn down. That's just business.
Rates are driven by the market and there are plenty of markets to be a part of. I have reefer trailers and can name off a half dozen without thinking too hard. They all have favored lanes, commodities, time of year, etc. I'm sure it's like that for open decks like yours. Like me, you've chosen not to be part of the market that is a race to the bottom. I think it's important not to stress over others accepting a rate lower than you would. They will always be there. There is a revolving door at the bottom and en endless stream of cut-rate carriers standing by. You can't beat that and why should you? They are not your customers in the first place. They are price-driven customers that place no value on your premium level of service.
I think the dilemma you have faced is having hooked a few of these price-driven customers on spot loads. Even the bottom feeders catch a nut once in a while and need to move something at any cost. They have a good banter on the phone, the load moves good, then what? Back to the regular program of grinding rates to a stump. After only a couple years, I can spot these within the first 5 minutes of the call. I don't get offended. I do like they do and take the money and run. When the cheap offers become a habit, I quit calling them and send them to voice mail when they call me. Sometimes I'll answer if I'm bored just to catch them off guard and remind them that quality service is available for the right price. Even those guys have a list of favorites to call on when they're in a bind. Don't be a Richard and it could very well come back around some day and pay off.062, Mrfasttrack, FLATBED and 12 others Thank this. -
Very well said!
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I have developed relationships with a number of brokers over the years, but this is still a business. I have a couple who call when they get in a bind and need a truck ASAP. Sometimes I can do the load, other times I can't. I got a call yesterday from one of those people. We didn't get together this time, but they will all again. I no longer get a lot of calls with cheap rates, but they still call every once in a while. I have one broker who continues to call with cheaper rates than I normally haul. I have had several calls from several with short runs that I didn't take. Rates were fair and I might have considered them were it not for the area where they were going. When I go to a bad freight area, I need a rate that will allow me to deadhead out without having to dig in my pocket. Those with whom I have done business know that I won't likely take a cheaper load, but will occasionally call, just in case.
It takes time to build relationships. While price is nearly always a consideration, service and reliability is sometimes more of a factor than the rate. You don't build relationships over night. Most brokers won't give you their best rates until you prove yourself. We talk about unreliable brokers, but there are some carriers who are not that reliable. Those will never get the best rates due to their reputation. If you are always on time and honest, you will build positive relationships. While price will nearly always be a factor, a good relationship can often tip the balance in your favor.dannythetrucker and misterG Thank this. -
It must be dumb luck. Built relationships with probably a dozen or more different brokers. Work with some almost every week and others off and on. Might not hear from any particular one for months then get a call out of the blue.
Have even built relationships like that with one CHR branch office plus an agent in another one. Have another good connect with a mega broker here recently who has passed along some good loads. These folks give me freight if they have it and I'm available.
We don't always connect but I do try to stay around their freight and they have a general idea of my lanes. Fill in gaps with random loads from unknowns. Even make connections that way. It's always amusing to connect with someone new, find out they have what I look for, and develop on that. Sometimes though nothing comes of that.
And when freight is down, well, nobody has anything. Several of our drivers have built networks like this. The brokers sometimes work with other drivers at the company, that they've never dealt with before, based off experience with the driver they usually work with. I always figured this is how every driver tried to make a go of it off loadboard freight? This is how we do it. I even get repeat business from brokers, that some would say I gouged the hell out of. I never gouge. I have deadhead to cover, 33% year to date, and the rates must pay for that. They know that even though they try to avoid paying it.
Most of us run particular areas and know them fairly well. Random loads going to deadzones like FL or SD, the way I see it, are losers that distract me from my lanes. Although I will go to places like that when the money is close to round trip. I think the failure of most to make anything off loadboards and develop profitable connections with brokers is they never settle in on any specific lanes. Running all over chasing one rate to the next randomly is a difficult way to pull it off. You'll never develop much in the way of repeat business that way.
And there is no way to ever be in the same areas at the same Times to develop that important repeat business. I know it has been beat to death a million times, direct is the best and only way to make money, loadboards are the pits crappy loads that no-one wants cheap.
I have found quiet the opposite to be true and view loadboards as a good way to make some good money. Everyone does a crappy load now and then but I can guarantee much of what I haul are cherry loads many drivers would love to run. But there has never been anything random about how I operate.
Have specific ideas about freight and what i need. For the most part it's true loadboards eat a lot of well meaning drivers alive. But not all of them. Crazy as it sounds I wouldn't have it any other way I enjoy working spot freight. Even with the wild ups and downs nothing can top it imo. To me the wild swings are like a drug or something. My only complaint would be that it sucks to be the last guy called because of my rate. And that I have to leave in a hurry most 5 pm's to work all night. Only when it's busy do they pay fair during the day. But there are a lot of people who run cheaper than me, it is what it is.SL3406, BigBadBill, 062 and 1 other person Thank this. -
As a o/o leased to small co. I have learned to "network" you never know who will have info on that next load,truck repair,so on. Years ago I could care less if I burned a bridge. I have since learned to ask more questions than make statements.
dannythetrucker Thanks this. -
Hmm why deleted
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relationships with brokers went away with the internet, it became too easy to find the next cheap ride.
dannythetrucker Thanks this. -
Regardless of the type of business, the most successful build relationships along the way. Trucking is no different. Sometimes, your relationship is the only reason you may receive business from a company or broker.
jbatmick Thanks this. -
I use to go out of my way when starting to help transport stuff out in the sticks for a particular large broker or two to get into their good graces. But what I learned is that unless you are doing it for a small brokerage, specifically the owner, the illegal hack calling in after you is pretty much on the same level. Maybe it is different as I do auto transport, but employees in dispatch change jobs all the time & there goes your record. The core company has no clue the specifics in the matter, just that you moved X cars & grossed X amount, here is your 1099 at the end of the year.
Oh & transporting the stuff that was hard for them to move does not mean they will call you when the good stuff rolls in. Most of that is taken within 10 minutes of hitting a load board, so they do not have to call. Again, auto transport, maybe box/flat freight is different.
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