How to negotiate pricing with truckload carrier.....broker perspective

It's amazing the number of brokers with no trucks of their own, seeing as we are just raking it in ...

 

Thanks for the link; interesting article for the broker's perspective.

 

Brokers make $200-$400 per load booked. Know that!

 

In such a competitive business? No way. Typical would be about 10-15%. If they making 30% or 50% or more than that on anything it's because of a trucker who didn't care, doesn't know what they're doing, or some kind of freight where they can win sometimes but also will lose depending on swings of truck available. Most of them are playing averages no differently than carriers working spot.

 

I am looking a load for one of my drivers now .
Same load , 3 different brokers .
Two brokers wants to pay between $ 1050 and $ 1200 and the third one $ 750. Same town , same PU and delivery hours ,same lane.

 

So what is your point? Price is only a number. Ask 3 different carriers what they need to do that load and you won't get the same number. Trucks always move to the money so how many do you think would bother to call on the one posted at $750? I wouldn't call on any of them unless I needed the load. Then as any other truck would go to the money. If they called me then their price is irrelevant anyways.

 

why would any carrier give the rate BEFORE knowing the details?
weight, commodity (had this one guy want me to pick up recycled plastic in bales (if you dont know what that is, when you find out, you will never do it again)) pickup del times, can i go in early? etc

after that, NOW we can discuss rates, if he thinks i am going to pull 46k for the same rate as 5k, he has lost his mind
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Are you a carrier or a broker ?
As a carrier , I would think you would ask for at least 2 bucks a mile .
So, even if you're calling 3 different carriers you're going to get a rate between $ 1000 and $2000 for let's say 500 miles,depends of how bad the carrier needs to move his truck.

The going rate for the lane I was calling it is a lot more that $ 1200 but I do know that the fuel went down and the rates are lower than used to be so I am okay with it.
I am not okay with brokers like the third one I've called and wants to pay $ 750 ( they didn't had the rate posted , i had to call ) for the same load I've done last week with $1500. Different broker of course.

Now , how am I suppose to negotiate with that broker ?
I've just hanged up and called someone else but it makes me wonder. Is it possible that there's other carriers who would accept that rate ?

 

I'm a one truck o/o who books everything I haul from the open market. First off when you call inquiring about a load you have already lost the negotiations. Although I have had them on a few occasions not wanting me to hang up after I called about a load. Then ended up paying a rate I dictated, in a few circumstances, of a hot market but it doesn't happen often. You want them seeking you out if you intend to dictate the terms.

So you knew what the going rates are and there are 2 other brokers offering more why do you care he has it posted so low? Only an idiot would book it with 2 of the same option paying more money right beside it. You can put any price you want on anything. Does not mean that is the price it's going to fetch. So the rate is posted too cheap or not posted at all none of which really matters to you one way or another. It's a distraction. If you're on your game and know what a lane will pay why does it bother you? Everything is negotiable and what doesn't suit your needs - you just walk away.

He post it at $750 hoping to get lucky. Good for him. Those are the ones you quote 3x what they're posting if they ask what you need. If they're an amateur they will get mad and hang up. If not they will thank you and go on their way. They might offer you $1,500. I have had brokers pay double their initial offer before. You said that's what it paid you the week before. But remember things change day to day sometimes.