Broker: NO Negotiations.

T

Your rate is a percentage above all your cost in order to be profitable. Period! Who cares, what the brokers get!

 

Bahhhhahahahhaha! This just made my day

 

Let me ask you... Do all these negotiation skills involve scenario I experience at a Flea Market "How much? 35 bucks. I'll give you 25...Nope. then I'll give 30! Deal!" ? If so, what's all that fuss about? I understand having a fleet of 10 trucks and there is a contract at stake... but a load board negation? I mean , there is a popular Radio Show where a host is always asking angry (at rates and brokers) o/ops "How many books about business negation have you read?" Really? I imagine that if I end up in Saginaw, MI and it is already getting dark, and I got Saturday night party to attend in Chicago the next day, then I'll go with whatever they pay me. On the other hand, when I am home and its raining outside, as lazy as i am, they had better pay me good to leave the house. So...Should I read books about how to negotiate? If so, could you point me to the right literature? Thank you.

 

Some people learn by reading books, some by "reading people" & some don't learn at all.

If you understand how to negotiate, you don't need a book.

Idk specifically which radio host you mean...I can guess.. I don't listen to those channels/shows. Don't need their help.

Lot of owner operators, whether own authority or leased to a carrier: really don't know how to run a business. They are the ones happy making no money & thankful for their situation, or furious for making no money and blaming every body else.

 

@TallJoe With regards to negotiations there's nothing to it really. Some people are naturals at it and some people aren't.

Your flea market analogy isn't really way off lol. I start off by knowing exactly what I need on any given load before the price is ever mentioned by me or the broker. Knowing what I need involves a discussion about load details and that is a lot more than simple pickup and destination cities. Then after getting details, go from there to price.

Some people will quote higher than what they really want and get "talked down" to their number. I always just quote what my price is from the get go and leave it at that, no going down, there it is. Really it's 2 different means to the same end.

Then there's the whole "knowing your market" part. Knowing what you can get out of any given area. Sometimes "negotiating" is as simple as asking a broker "what are you offering?" and you probably are best off just accepting that offer. Florida reloads 9 or 10 months out of the year come to mind here.

In other areas where the rate can vary widely one way or another you might ask a broker that same question "what are you offering?" not because you are going to accept what they are offering but simply as a gauge to see what number they are at. You might negotiate a $100 more or you might negotiate $2,000 more from that point. Market depending.

Negotiations is really the easy part. The difficult part is knowing the markets.

 

And one more thing... Is there even any room for a negotiation when you are in places like Saginaw, MI? I know there should be one when you are at your paid off house an have money in the bank.

 

"Negotiations is really the easy part. The difficult part is knowing the markets"
I like it! This is something I should write on my sticker note and put it on my dashboard.

 

Of course there is (Re: Saginaw, MI). You don't necessarily have to always score your best paying loads from the comfort of your vacation homes. That's why it is important to learn a few key regional areas really well.

 

Well, if you are looking at the board and see loads sitting for few hours, then of course you can ask for more money. I just came out from that area yesterday for $750 on 250 miles, broker was swearing he did not have a single dollar over $500 on this load. Just had to sit for 15 minutes ,when he magically found the extra money and called me back. Like Rollin Coal said, negotiation is not hard when you know the market you are in. Michigan was slow up until August, now it's good