Cheap Freight Doesn't Exist

Discussion in 'Ask An Owner Operator' started by BigBadBill, Apr 17, 2014.

  1. BigBadBill

    BigBadBill Bullishly Optimistic

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    Just cheap capacity.

    The carrier is selling the product and setting the price. The customer, the person with the freight, determines what they are willing to pay for that capacity.

    Are you a premium carrier providing service that others can't seem to provide? Are you the Nordstroms of trucking? Then why do you care when a swap meet customer thinks you are too expensive. They are not in the market for the level of service and quality that you provide. Let them move on to a "swap meet" carrier.

    "Say No To Cheap Freight" has done more damage to the independent O/O than anyone can imagine. It changed their mindset from that of the provider to that of the customer and gave the upper hand to the actual customer in negotiations.
     
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  3. Davidlee

    Davidlee Medium Load Member

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    As an O/O your service is currently in demand.

    KNOW WHAT YOU'RE WORTH AND GET PAID ACCORDINGLY!
     
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  4. dude6710

    dude6710 Road Train Member

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    Cheap freight is everywhere. It's the cheap rates being offered that are the problem.
     
    truckerdave1970 and 281ric Thank this.
  5. Davidlee

    Davidlee Medium Load Member

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    I can't say I blame the Broker for offering depressed rates in his attempt to make the most money in the least amount of time. I just wish if the same could be said for all of us as Drivers.
     
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  6. 281ric

    281ric Road Train Member

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    were no different, when we shop we try to buy the best product with the lowest price.
    if you want a new truck and 2 dealers have the exact same truck and offer more or less the same serivce but one is priced considerably less , which one would you choose?

    As a consumer I want to stretch my dollar as far as possible. As a business owner I want to get top dollar for my services.

    If youre an independent part of your job is to negotiate a good rate. Driving is the easy part.

    A lot of us independents would be better off leasing on to a good company with access to good rates rather than hurting ourselves and our industry.
     
  7. BigBadBill

    BigBadBill Bullishly Optimistic

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    If you are only finding people wanting to offer you swap meet prices for you product you need to stop and ask why? Is it a value issue? Are you marketing your product in the wrong markets? Do you have a good value propositions and know the markets but you are having trouble marketing your product?

    There are plenty of customers that are willing to pay for a premium product. The challenge is figuring out what you need to do to attract that customer.

    I can't say what will work for you but can say focusing on the priced focused customer doesn't work.
     
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  8. GearWarrant

    GearWarrant Medium Load Member

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    Off topic: Just noticed, good job on the weight loss Bill!
     
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  9. BigBadBill

    BigBadBill Bullishly Optimistic

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    Agree, and what I am saying is the driver that is grinding a way with the price focused customer has put themselves in the customer mindset rather the seller mindset.

    We are in a market where the carrier has to understand that you are providing more than moving freight. Plenty of customers that are only willing to pay for this service. To get away from those customer the carrier needs to understand what services other customers are willing to pay for and making sure that you are marketing and providing that. Often, those extra service really don't cost anything extra but pay considerably better.
     
  10. BigBadBill

    BigBadBill Bullishly Optimistic

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    Thanks, stalled a little bit recently with moving to new house, launching a new business and the weather. But now that we are getting into fixing up the house I will get plenty of exercise.
     
  11. Davidlee

    Davidlee Medium Load Member

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    Perhaps it's not as much cheap freight as it is one offering or willing to provide cheap labour.
     
    BigBadBill Thanks this.
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