Cold Calling Percentages

Discussion in 'Freight Broker Forum' started by RB Cunningham, Aug 2, 2015.

  1. RB Cunningham

    RB Cunningham Bobtail Member

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    I'm an aspiring agent. For you veteran broker/agents out there, what's your conversion ratio with cold calling. I've heard horror stories where new agents are lucky to convert one prospect into a customer out of every a hundred calls.

    So what do you think is a reasonable conversion to customer ratio? What percentage of your cold calls actually results in an eventual customer?

    It would seem to me that a shipper would have little to fear in sending you the same load list that they're sending to 200 other brokers. I'm sure that an actual Exclusive Agreement with the shipper to haul their loads would be much more difficult to pull off.
     
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  3. old iron

    old iron Road Train Member

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    That's easy. Just do like every other dirt ball broker and promise the moon and tell them that you can move the loads 25% cheaper. Then when you have had that same load posted at 75% for a strait week and finally it has to go you up your price. When I pull in to get your "hot" load I get informed I am 2 days late. All because of your B.S. Somehow it's always the trucks fault?
     
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  4. sjmay

    sjmay Light Load Member

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    Just curious, what's your company name, or your MC#?

    I just want to make sure we never ever work together,

    With an attitude like that...just...wow.

     
  5. icsheeple

    icsheeple Trailing the Herd

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    Hehe, I showed up late at a shipper after the double brokered load info gave me the wrong pickup address. The shipper was asking me if I got lost and why I was late.... I just smiled and said I'm here now, what door you want me in. SSDD
     
  6. RB Cunningham

    RB Cunningham Bobtail Member

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    Old Iron:

    Doesn't sound like you're a fan of dealing with brokers. Just curious, have you had any positive interactions? Any brokers that were fair, honest and reasonable?
     
  7. old iron

    old iron Road Train Member

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    In my experience 25% of brokerages are someone you can trust, and have a long term relationship with. They are generally the smaller, older, established operations. They will remember your work ethic, professionalism, and dedication.
    The next 50% are the large, hard to understand, telemarketer type operations. Volume, volume, volume. My name is on the door and I give the same top 10% of service on any load regardless. However I can't count the number of times I have bailed a broker out of a jam, and 2 weeks down the road see the same load on the board. With no phone call like we had talked about previously. Call up and the same person doesn't even know you. I have had this happen so many times its funny. Here is a truck you know will get the job done, without any supervision and is waiting for a call. ?????????
    The last 25% are the just starting, bad credit, The 200 and 1st on the shippers mass email list. Generally have no idea about the load, shipper, or receiver. Whats the product? you get silence. Shipper and receiver hours? you get silence. At this point myself as the carrier I am better off going direct with the shipper. My email works the same as yours. If I am going to do all the legwork anyway why do you feel the need to take your percentage? If you have to "call your customer to try to up the rate for that $50 extra" I could and will do the same.
    What kind of broker are you?
    If your in the bottom 25% believe me it will not happen. Middle 50% if I call you things did not turn out as I had planned. But we can live with each other. If your in the top 25% I would like your #. I am looking in the long term. You scratch my back and I will move heaven and earth to scratch yours.
     
  8. old iron

    old iron Road Train Member

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    I work with several. First name basis, call up just to shoot the bull. Whats it looking like next week?
    I like working with them and the feeling is mutual.
    I don't need a babysitter and my word is my bond.
    I try my hardest to work with the same caliber of people. But it is getting harder by the day.
     
  9. RB Cunningham

    RB Cunningham Bobtail Member

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    Old Iron:

    I haven't started yet but I would like to be the kind of broker that makes my money on volume rather than taking a huge percentage off of any one deal.

    Although a huge financial score off of one deal can be tempting--if in the end you wind up pissing off and alienating carriers in the process, it's probably not worth it.

    I'd like to think that if the carrier accidentally saw a copy of my rate agreement with the shipper--he wouldn't be so insulted by my profit percentage he'd want to end of our relationship.
     
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  10. old iron

    old iron Road Train Member

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    I will go against the grain here. The spread between what you are billing the shipper and what you are paying me is none of my business. If it is excessive then I didn't do my job. The guys i work with, I want to be making good money off of me. That is what makes this deal go round. I promise to do what I say. On time every time. Keep the shipper happy. Loads not quite ready, no problem. Last minute changes, Ok load it up we will sort it out later. Keep that shipper in your hands only. Once a cut-rate outfit gets a foot in the door we all lose. I scratch your back you scratch mine.
    I apologize if I came off a little pissed on that first post. It just seems like it is spiraling down hill. Get a new guy in shipping and all bets are off. Years and years of relationships down the drain with a unknown broker promising the world for cheaper. Generally can't deliver on promises and wind up getting the call. XYZ dropped the ball. Can you cover it? Of course they all-ways want it done for the cut rate that started the mess.
     
    Last edited: Aug 2, 2015
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  11. TXREDMAN

    TXREDMAN Bobtail Member

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    Pre 2002, it was around 1.5% of cold calls that turned into something worthwhile, and that sample size was gigantic. In the past ten years, it is now 0.0015 on a sample size of 2000+ unique calls.

    However, as a carrier, the numbers are much higher, and once established as a carrier we do broker some of the assigned freight to O/Op's who are very close to the vest.
     
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