Methods of convincing Direct Shippers

When starting out as a brand new brokerage, what can I do that sets me apart to the shippers from the competition. Because I'm a student, I don't need to cover my living costs, meaning I can offer shippers lower lane prices. Is there anything else I can do otherwise to convince shippers to choose me over other brokerages?

 

So you’re saying you’ll take less of the total cost, percentage wise. But pay the companies who deliver a rate that’s competitive with what they’re accustom to with other brokers.

Yes? No?

 

Yes, because I'm taking less margin off each load, I'll be able to offer the shipper a cheaper per load price while maintaining a competitive offering with the carrier side

 

So you will be offering cheaper trucks, cutting the rates ?

 

No, I'll be going after the same trucks as if I were taking normal margins. Nothing changes for the trucks, I'm only giving the shipper savings on each load as a way of getting them to sign me on as a broker.

 

Do you have an idea now as far as what shippers are paying as well as what trucks are moving for? It's different for every lane and may change from week to week or even day to day...

 

I'm primarily going off DAT for what trucks are moving for, but I have a hard time with guestimating the shipper side. Based off the limited accounts I have I usually add 15-20% margin on top of the DAT. But at the end of the day I pretty much am guessing

 

That methodology could come back to bite you when you do decide to charge full rates... Customer already expects cheap rates... Then what?

I'd say go get you some serious face time (thats not a video call either) with these shippers. Show them you can be professional. Start small ask for 3 to 5 loads a week as a trial to show them you can do the job. Then if anyone has complaints y'all can reassess, and go from there. Over time you can ask for, or they may offer, more loads.

But I know very little about brokering loads... Like next to nothing actually. So I may be completely off base.

 

I appreciate the advice and I'll be sure to employ it, but the hardest part for me is that no shippers want to work with brokers, only with trucks

 

Just cutting rates from what's on the loadboard is only going to hurt you eventually, if you're going to pull for the same price direct as what your percentage is from a broker makes no sense. To me what you're looking for is more work for the same pay, and nobody is going to tell you how low you have to go to steal their customers.