Broker Strategies/Tips

Wichris pretty much summed it up. It takes a lot of calls just to get a hold of someone and talk to them live, even more calls to find someone who needs capacity, and more to secure someone's business. I haven't been in this industry this long but when dealing with shippers it seems to follow other similar service industries that I have experience with. A majority of shippers have been using someone (broker or carrier) for years and won't change providers, even if you have lower prices, etc. But if you follow up with them on a regular basis (not often enough to bother, but often enough for them to remember who you are), then you may catch them on a day where they are hurting for capacity and you may be able to fill that void and get a foot in the door.

A lot of larger companies put their lanes out for bid on a regular basis or when they are looking to add providers to their pool, normally this only happens once per year or on some sort of regular interval. In this case you may find it easy to talk with the right person with the shipper, but you may wait 6 months or more to get a chance to bid on their lanes.

Then there is a smaller percentage of shippers that live day to day and rely on a group of carriers and brokers to cover their freight on the spot. Its tough dealing with these types because they usually are just wanting someone to move their freight on the cheap, but you never know, catch them on a day when they are in a bind or on a lane that they have more room on and you can get your foot in the door and build the relationship from there. Find out if its a regular run for them and take that lane on a regular basis.

I would think you have an advantage representing yourself as an asset based broker. You should be able to speak confidently to your customer about capacity (since you have your own trucks, etc.), which most are bound to like, but you have the flexibility to use your broker authority if need be. In the bulk world (hoppers, end dumps, etc.) an asset based broker probably carriers a little more weight when selling loads to other carriers than does a non asset based broker, at least that's my experience. However I'm not sure the same can be said for flatbed, van, reefer, etc. loads due to the reputation of some of those types of asset based brokers out there.

Either way you look at it, it takes a lot of work either calling or trying to meet people face to face. I switched from asset based broker in the bulk world to an agent about a year ago. Fortunately I was able to take a small book of business in the bulk world with me, as well as a decent amount of contacts, but it has taken me a long time to get going with shippers that offer flatbed, van, reefer, etc. freight, it just takes time and a lot of persistence.

 

I have a question for other freight brokers, I have been running a brokerage here in Calif since 2005 it was easy for me to have my 10 thousand dollars just sitting in an account and keeping my permit alive. Now as you know the bond went up to 75 thousand dollars which I do not have so the bonding company put us brokers on a plan we have to pay 700 dollars every 3 month for a plan to keep us up and leagle at the 75 thousand dollars. I have never had a claim on my bond always had an open door policy where anyone I've broker to can come in and see what the load payed and what was my commission " 30 years as a trucker looking for an honest broker I had to become one because I knew the hardship truckers endured" well my question is does anyone know of a cheap bonding company because I have already asked for my bond money back and am being forsed out of the trade

 

Gibbs,
I do not have experience in the Northern California freight market but it seems you have a good understanding on what you want to accomplish. Your ability to speak intelligently with the written word is apparent. It's surprising to me that you can operate profitably using Load Boards.
Hopefully your brother's MC for the carrier side has no yellow flags on it's current safety record.
I would be calling on the 3pl's, and freight forwarders with your contact info and lanes you already provide good service in to let them know you have capacity and to give you an opportunity. I would build from the carrier side and broker when sent to area's that you don't want to run with your brother's trucks.
I would contact the places where you already deliver to with your direct shippers and inquire if the truck just Mt'd could get a load somewhere. If you deliver on time there are there any other places you could bring them freight, inbound or outbound, from for your new brokerage division.
When you call on somebody that says they give all their freight to XYZ 3pl ask for the contact person there to send them your info as a carrier. Yes somebody else has their hands on the freight 1st but it works like that alot and you can't change that you work with it.
The 3pl's need good carriers to make them look good and they pay their carriers promptly.
I would plan on calling on shippers as a carrier and not even mentioning brokering to garner new business. If you are asked to quote lanes where your trucks don't want to go, then be honest with the shipper and tell them you don't go there but would they object to servicing them with your brokerage dept. Once a relationship has started and you're moving freight with your trucks, it's a smooth transition in my experience. At that point, you've earned their trust and can grow your brokerage side.
Hearing that you are encountering objections, road blocks as you say, is great news. That means they need more info before letting their guard down.
Give em facts. You are a carrier with an excellent safety record looking for new business in a tight capacity market for trucks. You are never going to be the cheapest guy because you run your trucks at a fair rate. You are quick to respond and would like the opportunity to demonstrate your service. Do you have any shipments that you could quote?
Then shut up and let them speak next. Whats the worst that can happen? They say no ? Hey my brother needs these loads in the worst way and maybe doesn't speak so good the english but did I fail to mention he was a champion Kick Boxer Knife Thrower back in my country?
To answer your large shipper question. I was trained to stay away from them as low pay, slow pay and not worth the effort to compete with the mega carriers that handle their business. So I stay away and look for smaller companies to help.
The heck with Linked IN go to facebook and find out the prospects likes,music and tv shows, friends,zombies,vacation spots etc. They don't have to know you stalked them to find some common ground that came out in your discussion. Heck you might have some common ground that will help build your trust. If they like Nirvana music, put that on your cpu on Pandora softly playing in the background while you talk. Look at the companies Facebook page to gain additional info on who you are conversing with.
Mention to the prospect that you see on their Co's Facebook page that they have some killer parties, or cupcakes, or baseball game outings
that it looks like a lot of fun to work there. Be careful with this line of attack as you might say how fat is that lady in real life that got
pushed into the pool and she happens to be the accts payable clerk the prospect has a crush on. It's like dating, Match.com stuff. salesman stuff. Am I making any sense? You have to build some kind of rapport to break the ice and then if you truly have something to offer and they aren't interested. Move on. It wasn't meant to be. Go onto the next target.

From what little bit of info I have on you. Call the prospect and in a few words let them know your interest in assisting their transportation needs, you know they are busy and well cared for already, could you get their email address to send them your info please?
Then let your writing skills take over in a well thought out, concise, 5 sentence email telling them why they need to keep you in mind for a Plan B when their current provider inevitably will drop the ball on them.
Have a web site to link to from the email that will tell them the many more reasons they could benefit from using your services.
Be honest in all your dealings and don't make promises you can't keep.

 

This is going to be long and probably not well written but here you go but I promise it will go somewhere

I have never had much luck with cold calling but I have had luck with networking with people and calling on my current customer's customers.

Here is my qualified advice so take it for what it is worth:

You already have customers contact the people you pick up from or deliver to for them it is very easy to explain to the shipping department who you are because they already know you they will give you the contact info you need. You need to find you in and it can be that easy.

I really never figured out what was going on until I was shopping for clothes one day and started thinking about a shirt and how much transportation is needed to make that on cotton shirt.

Cotton picked from the field and baled and loaded onto the truck and taken to a warehouse. Cotton loaded onto a truck from warehouse to manufacturer. Finished product loaded on truck and taken to a distribution warehouse. Distribution warehouse loads up the shirt either LTL or small parcel. Point being there is a lot of transportation going on and you are just looking for a small piece.

I have a friend who knows the owner of that clothing company. I was introduced to him by his friend. I came up with a great plan to where my company would be in control of the supply chain from raw material to finished product which is what we do. This solution is very profitable to me but also saves him money and time at the same time.

This story is actually about the ability of networking and I believe this is the best way to get business. If you have a way in to talk to someone they will listen to not only but will tell you what they are looking for.

Example you call A "Hey Adam this is Bryan from ABC Company I got you name from Charlie" Adam will sometimes say something like "Charlie is good guy how is doing" Instant in and trust is built as to a timid approach to a cold call. I always try to set up lunch or drinks or at least a meeting to get face to face interaction.

Just think about all the people you know and what they do and how a truck gets it there. Now if all you friends are doctors and lawyers then my don't listen to my advice.

 

A couple more things you must offer something that is going to set you apart from every other asset based broker. Being an asset based broker does already give you a leg up on the competion because a potential customer already has it in there mind that you will use a company truck to pick up a missed load or a load that an outside carrier falls off of. This is a huge advantage and selling point and a way many times I have received that one call from a potentional customer to get to working with them because another broker dropped a load back a customers lap at 5 pm friday and they were desperate.

Another thing I would look at doing is setting up a small quick presentation on your company and have the ability to tweak it to a new potential customers needs. Power point works great I prefer a website but that is just me. Sending out emails to people without speaking to them first is a guarantee to be deleted before being looked at. After you get into contact with the correct person who makes the decision on transportation get there email by saying "Hey I wanted to send you over all my information and a brief presentation about who we are what we do" They will look at it I promise.

I had a transportation manager tell me the reason he called me back because he took a look at the link in my email to my website and was very impressed. This was how I came up with this strategy.
Even if you dont have a website you can do a flashy power point. But make it quick and get you message across. Websites are a cheap way for advertisement for your company for $5-10k you can be set up pretty nice and make sure it is updated. I have a section on my website and when a new company moves into our area we put an announcement welcoming that company to the area. Pretty easy way to keep you up at the top of the google hits.

I would also come up with a script and practice it for when you make the call to someone make sure it comes off natural best way to practice it is in front of a group of people.

 

you may want to rethink #5 of not soliciting freight right away. What has worked for me is to only contact a shipper when I have a truck available to them RIGHT NOW !

Put yourself in their shoes, they're probably a lot more concerned about the loads they have to move that day than establishing a relationship or developing a plan to work your trucks into their system. I've had pretty good luck getting my foot in the door when they have a problem load ready to go and I can say "no problem, I'll have a truck there in 1/2 hour if you want".