“Target Rate”

Discussion in 'Freight Broker Forum' started by PJM41, Jun 24, 2021.

  1. PJM41

    PJM41 Bobtail Member

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    I am new to dealing with brokers, as I have only dealt direct with customers to this point of my business. When a broker states their “target rate” early in a conversation, how realistic is this number and how much room is their to negotiate it upwards, typically? Is the initial target rate usually a low ball?
    thanks
     
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  3. God prefers Diesels

    God prefers Diesels Road Train Member

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    I see where you posted this, and I'm a trucker. So take it with a grain of salt.

    It's low ball. Lower you haul it for, the more they get to keep. Naturally you want to make as much as you can. If they say two grand, and you want twenty five, tell them three grand. They're playing the same game. It's a negotiation.

    @PPDCT
    @JimmyTwoTimes
     
  4. Kenworth6969

    Kenworth6969 Medium Load Member

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    You never know how much money a broker can move or how desperate they are.
    What I like to do is play off I'm not interested when a broker contacts me even if I am solely to see the response from the broker, as in how much they fight to keep me on the phone and plead with me etc etc.

    Do you what can to learn the position the broker is in, that gives up so much power in negotiating.

    If a load can be pushed out to the next day no big deal to wait for wait truck vs HAS GOT TO GO TODAY AND YOU ARE BEST/ONLY OPTION will make the world of difference.

    Every situation is different.
    You'll learn over time like anything else.
     
  5. CAPTransport

    CAPTransport Light Load Member

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    You have to watch the load board and look at the finer details. It's chess not checkers. A broker may list a load for $1,800. You bid $2,800. They take the load off the board and say somebody else took it, yet the very next day it's back up again for $2,000. They're getting closer and closer to the date that it MUST be moved. If you can watch the board for those loads that keep getting taken down and posted the next day and then the rates start to increase on it, you have more negotiating power. I know a lot of drivers like to plan and book days or weeks ahead but you're left with no negotiating power in that scheme.
     
  6. PPDCT

    PPDCT Road Train Member

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    It varies, depending on market forces, timing, load criticality, and so on. You want to be listening to what the broker is saying. There's tells that will tell you when there's room to push, and when they're going to stand. Same for drivers. If I hear the phrase, "I really need this load," or similar, I know I can push back a little more.

    I don't want to give away the *whole* shooting match, but listen to their tone. Listen to see if they sound relieved to be talking to someone, desperate, or otherwise. You can push a little harder, in those times.

    Right now, the market is more favorable to the carrier. You can use that to your advantage.
     
  7. ProfessionalNoticer

    ProfessionalNoticer Medium Load Member

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    Their "target rate" most likely isn't YOUR target rate so it's just brokerspeak IMO. Same goes for those ridiculous rates they have on DAT and ITS. They're a joke and not reality. Focus solely on what you need to make the move. The rest isn't even worth wasting your time thinking about.
     
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  8. Midwest Trucker

    Midwest Trucker Road Train Member

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    You need to know what you need and what the lane characteristics are. However, being a nooby then I’d go a good 20% higher then the target rate. That may or may not get you close. Good responses in here.
     
    Wespipes and God prefers Diesels Thank this.
  9. skallagrime

    skallagrime Road Train Member

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    Im getting ready to enter into the negotiations portion (self dispatch) myself

    My personal goals are
    1. Highest rate i can get
    2. Good enough quality on running a load the broker might call me to see if im in the area to run the load again or at least be flexible if they need reliability.

    I have turned down only 3 loads ever and one was because i was dispatched before i got word to my dispatcher that i had a mechanical issue that i needed the rest of the day on and the other 2 were simply loads that i didnt have the tarps to haul but the broker wasnt upfront about that in the first place

    Im not necessarily going to always be the most expensive truck, and if I can work something into a schedule if i have advance notice that helps me and a broker that knows im reliable, how do I build that rapport? Just haul a bunch and keep in contact?
     
  10. God prefers Diesels

    God prefers Diesels Road Train Member

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    I worked with one guy on about ten loads before he even remembered me. He didn't speak good English, and he was a real robot too.

    For everyone else, I've noticed the thing they like the most is communication. Emails with rough ETA, then firm ETA. Updates every now and then so they can feel the pace. Man, those people call back, even when I feel like I shafted them on the rate previously.
     
    Lite bug, JimmyTwoTimes, PPDCT and 2 others Thank this.
  11. bad-luck

    bad-luck Road Train Member

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    Generally yes. You want to make the most you can on the load and they want to pay the least to get the load moved. The closer it gets to the pick up time on the day the load picks up you will get the best rate, It's a negotiation. But if they won't come up to what you need, you move on.
     
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