A Rate Index is for Suckers

Yeah. But it's like the bridge that I just happen to have listed for sale. Decent condition, awesome NYC location, great views, collects millions of dollars a day in tolls.

 

I think he was just trying to make a point.

 

Here is what's said copied & pasted.

Rate Index Prices




"A rate index has numbers. But if you just want some numbers "how about buying a subscription to my email list." I'll email you numbers every day. You might get loads using my numbers or you might go bankrupt using my numbers. But at least you'll have some numbers. Hopefully, you caught on that my imaginary email list is worthless because I'd be sending you completely arbitrary numbers."


Now my friends, that's trying to sell something, no ifs, ands, or maybes. Of course I suppose some truck drivers cannot comprehend just good old plain English.

 

And yet, you didn't catch the part where he said it was useless and imaginary, you're right, some people cannot comprehend good old plain English.

 

Mr Mclane thanks for the post. I think posts like these are priceless

 

i sent u a pm. Would u owner finance if I can come up w a down payment ? I hope no one beats me to this deal

 

Unfortunately I was one of those people who subscribed to these services and lost revenue because of it. There is no simple solution to determining rates in the spot market. I believe most carriers sell themselves short. Negotiating requires a thorough understanding of what the market will bear.

 

The figures also come from brokers who choose to send in the info. Do you think they will report the lower paying loads or the better paying ones?

When freight rates are up the figures posted are low, sometimes waaaay low. If rates are in the tank then the posted rates are a little more accurate.


Also the rates available directly from the shipper are usually much more. Sometimes twice as much.

 

I think there is a simple solution (unless by simple you mean effortless). This is right from my article...
Post your truck on the load board and/or broker websites. Call on the loads you're interested in. During all of the phone calls take notes and do your negotiating. You will then have the current market conditions for the loads and lanes you're interested in within your current spot market.

And I agree that negotiating on the spot market does require a thorough understanding of what the market will bear. Doing what I just mentioned above is doing the legwork for that knowledge.

 

You obviously didn't catch the sarcasm in the following four lines.