Need Negotiation tips

Discussion in 'Ask An Owner Operator' started by Shotgun94, Aug 19, 2019.

  1. PE_T

    PE_T Road Train Member

    Usually the moment I hear chicken load, I lose my interest unless they’re willing to pay very well. If I’m interested, I ask for the reefer temp, if it’s FCFS or by appointment, how long they usually take to load, and what the detention pay is. If the broker says no hourly detention pay or he isn’t sure how long they take, that’s a red flag.

    The moment you start doubting it’s a good load, quickly tell him that you’ll call him back. If you take too long thinking, he may think you want the load and that automatically will make it more difficult to get a higher rate. You want him to want you, and not the other way around. It’s a psychological trick. Also, don’t talk too fast or he may think you’re in a hurry to get loaded, and he may use that to his advantage.

    So say you call him back. You can tell him:

    “I see you have posted that you want 1700 for the load. I can take the load right now if you give me 2000.”

    If he counters the offer with 1900, then tell him 1925. Contrast this to starting your offer at 1900, where the broker may then say 1800. In other words, start your initial offer with a higher number in case the broker counters it.
     
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  3. SoDel

    SoDel Light Load Member

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    What do you use as your hourly detention number? I know that the industry "standard" (poor term here) is 2 hours loading and 2 hours unloading (industry wants free). Do you build your hourly rate into the overall rate? Say you go 75 an hour, just add 300 to the total rate to cover the "base detention". The reason I ask is that as I look toward going o/o, chicken will be a majority of loads originating out of my home area (we are the chicken capital of the US on the Delmarva Peninsula).
     
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  4. danny23tx

    danny23tx Road Train Member

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    2 hr window after that $50 per hour . For the loads and brokers I pull for they typically have instructions to start detention . Check in times check out times , call 30 minutes before you enter that 2 hr window to let dispatch know what is going on . They for sure dont make it easy and I have had to follow up on my most recent detention that I billed for at least 4 times before I got my money and that was from a somewhat reputable company .
     
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  5. PE_T

    PE_T Road Train Member

    At the moment I go by what the broker/shipper has established as detention or layover pay. I’m not sure a one truck business can force the brokerage company to abide by my rules. Maybe someone in these forums has a better answer. What I commonly see is detention pay after 2-4 hours or no detention pay at all, but with layover pay.

    Today, fortunately, detention is not a big issue as it was years ago. I remember when Stevens Transport out of Dallas, TX, did not have detention pay for all shippers or receivers, nor did they easily honor it. Eventually they changed, and the detention became “mostly” automatic with verification on GPS tracking and elogs. Shippers and receivers are getting more pressure from mega carriers to get trucks in-n-out within 2 hours, and now with the ELD mandate coming into full effect this December, there will be even more pressure. No more driving around under 15-20 MPH at shippers/receivers. We’ll be forced to use either Yard Move (which is on-duty line 4; starts 14-hr clock) or PC (which is inappropriate/illegal).

    When I negotiate, every time the broker mentions something bad about the load, the rate goes up (in my head). After the broker has given me all the details about the load, then we negotiate the price. Sometimes they state a price on the phone or on the load board, and at times they expect you to throw a number.

    I wouldn’t worry much about the chicken loads out of your home area because chances are there is going to be much more freight out there. You may have to deadhead a bit more, but not much. There is a lot of reefer freight around DE, NJ, PA, and MD. I’ve never had problems getting freight there. The problem with be getting good paying freight out of the northeast.
     
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  6. FoolsErrand

    FoolsErrand Road Train Member

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    Agreed. Dont go to northeast without enough money to deadhead a few hundred miles back toward OH/PA/NJ. And always tollguru your route. The wrong bridge will hurt you.
     
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  7. SoDel

    SoDel Light Load Member

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    @PE_Trans and @FoolsErrand thank you for the advice and tips. I am hoping to set up essentially a Mid Atlantic Local/Short Haul/ Regional operation running within a 450 mile radius of the Delmarva Peninsula. Im currently working to build capital to be properly funded and not enter business unable to negotiate and have to learn "the hard way". You guys insight is extremely valuable and I really appreciate it. I know in todays world everyone wants a silver bullet cure all answer and no one wants to do the hard work to be successful.

    If you don't mind me asking, do you negotiate with brokers differently (more aggressively) than you do as you work to negotiate with direct customers?
     
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  8. PE_T

    PE_T Road Train Member

    I don’t have a direct customer. I currently just work off the loadboard. From what I’m hearing, you need to have at least a few trucks to be able to get an account.
     
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  9. FoolsErrand

    FoolsErrand Road Train Member

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    I am a company driver for a stone quarry with a lot of turnover. When we are low on drivers i am haulin rock out and dispatched backhauls. When rock is too slow to keep all the drivers moving, especially when every truck has a driver, i go OTR self dispatch off my DAT acct, so that the workload stays more consistent for the others.

    Never had to negotiate a dedicated job. Sorry i cant be more helpful.
     
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  10. Commander1

    Commander1 Light Load Member

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    You can be the best negotiator on the planet, but in this market it won’t make much, if any difference. There is more capacity than there are loads in most markets. This puts rates in favor of the shippers and brokers.

    Confidence is the biggest challenge you’ll face with your negotiating skill. Learn to be confident and the rest will fall into place. Brokers do this all day everyday, and most can tell when they have someone on the line that isn’t confident. I can tell from your post that you have zero confidence in yourself.
     
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  11. FoolsErrand

    FoolsErrand Road Train Member

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    Agreed on capacity. The ball is in shippers court for now and they know it.

    1. Stay out of deadzones.
    2. Dont subsidize freight.
    3. If youre a flatbed, have every piece of gear you own on the truck.
     
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