Rates on Loadboards

Single biggest mistake, asking them what they're paying. Never do it. I could care less what some cheap hauler pulled it for before me. Ask them for details, what's it weigh, when does it pick up, delivery by appt, or fcfs...

But never allow a rate to be dictated. You want to be the one dictating the rate. Politely, and firmly.

Most drivers make lousy negotiators.

Most people don't think $750 on 17 miles in MA ever happens, and because they think it's an impossibility, for them it is. How about $450 for a single pallet going 300 miles that you can throw right on the tail? Yes, it happens.

But allowing them to dictate the terms allows them to frame reality.

Rollin Coal is right, don't allow this to happen.

 

I do pay, but it's the basic Member's Edge subscription..

 

It is right. No maybe about it. It's a concept known as anchoring. Talking about a specific price anchors the number in the minds of everyone in the discussion. Basic negotiation stuff. I didn't remember what it was called when I posted the earlier comment but I knew what it was. So you guys wanting a price on every load or always only booking loads with a posted price are basically walking right into the trap intended to keep the price exactly where they want it.

 

Or it's easier for some to look at a posted price. It may be a floor or ceiling offer. Counter with a higher or accept posted price,,because it's a fair pay for the load.
Save time on the phone.

Many ways to look at the load board.
It's a tool to use, just like many aspects of this business.

 

Easier for some to look at a posted price? That must be the mantra of cheap freight haulers. That's pure laziness. They need to pull their big boy britches up and start taking control of their business instead of looking for the easy way. And you know very well that more often than not posted rates are non-negotiable when you inquire on them. Come guys.... You that's how it is. The broker is usually proud of it or so full of themselves over it because they know the load will easily cover at their anchor price.

Of course I'm sure some of us have seen one at a posted rate we knew was really lousy even though at a quick glance it appeared good or it at least it was for some $2 a mile sucker not in tune with that market. And maybe we even booked that very load for many hundreds more than the posted rate when they call on us and were obviously needing to cover it. It can happen now and again. But the vast majority of posted rates that load is firmly anchored at that rate or at least very close to it (getting an extra $50 or $100 is very ordinary imo) and you got taken in by it.

Posted rates are just the easy way to get something covered quickly and cost effectively from the broker's viewpoint. Guarantee you they get more calls and cover them quicker with a posted rate. And it doesn't even have to be a good posted rate. Because there's a lot of lazy carriers, dispatchers, and drivers who don't put up a fight for anything out here. They just accept it at face value and go.

Take that for what it's worth. That's how I see it. I wonder what some of the brokers reading in here would say about it.

 

I'll be the first to admit and I know that it's true, I'm a horrible negotiator. I wish it wasn't so but, I've read and watched video's and tried to incorporate tactics and it generally seems to fail. It's like I have asperger's but on the phone or perhaps it's just terrible interpersonal skills from being both antisocial and an introvert.

I don't know but, I know that it's hurting my operation because I either end up sitting or rolling empty way more than I want. As a result, I've been finding my self feeling beat down as of late and have become more susceptible to hauling cheaper than I want, just so I can make "some" money.

It's like @rollin coal said, I can't get but an extra $50-$100 (if I'm lucky) passed their anchor point and it's killing me. I've caught myself even asking for that extra $100 (because of the routine of this is how it goes) after the broker blurted out their offer only to be shot down or offered $50. Hell, I've even went the $50 route only to b countered at "can you go $25".

I was always several hundred above what they were looking to move it for and they either took it or I walked away. Last year I was moving $3-4 a mile on 600+ mile loads, thing of it was I wasn't moving enough. So this year I decided to move more but to do it I've being bent over a post and it's taking it's toll. I guess the state of mind of " they will get someone to cover it at that rate" is setting in"....

 

Its very unlikely they will but yeah you can give them any option you want to. If they can kick it out another day the price is $400 so forget it. If there are 200 trucks fighting over every one load they might take it away from you after they sent the rate con for $400 and tell you someone else gets it for $300. Or maybe their customer is sick and tired of the broker not covering their freight, maybe they cant find trucks, and customer is threatening to take freight away from them - so all of a sudden $400 becomes more money.

You need to know that market and ask lots of questions about their load. Brokers will tell you when they're in the hot seat they blabb their jaws just like drivers do. Point is though their price should be meaningless to you. If it didn't have a $400 price posted on it you wouldn't have any hesitation at all stating that $1,000 was what you needed to make it happen. That's why it has a price on it. To keep the rate low.

 

I've gotten some real humdingers because of that. Of course I didn't know that until I got to the shipper/receiver. "You're the third truck they have had to come get this", "This was supposed to be here last week, the other truck failed, thank you so much!"

 

I picked one up last week and they said I was a day late. I said huh? You need to take that up with the broker, not my problem lol. And the broker told them I would be there at 15:00 that day as I show up at 8 pm exactly like I told the broker I would because I booked it at 15:00 and still had 250 miles to go. Then the receiver griped also as they worked it in like no problem. Funny how they can just do that when they need the product. Even funnier was what I was charging them to cover it.

 

When you're in a bad market, you post your truck and nobody calls, you know that the rates are set, the broker knows what it will cover for, you're at their mercy.

But when you're in a good market, you'll know. You post your truck and the calls start coming in. Also, another trick is let your truck posting sit there for half an hour or longer without refreshing it. Your listing will fall into the middle of the pack. If you're still getting calls, the market is yours. Not saying you can name your price, because the laws of supply and demand still apply, and there is a ceiling to pretty much everything. And markets seem slow to react. Shippers are stubborn. It was paying over $2/mi north to south and barely over $1.20 south to North. Couple months later, the reverse is true. But even though you can get $1.30/mi from MN to Memphis, they Still only wanna pay $1.50 to go the other direction. I kept getting calls to MN and WI today. Told them all $3/mi. Nobody bit. Screw em. I just refuse to play those games. You can get $1.50 to go to a formerly good market that is now bad, but you can get over $2 to another good market. Doesn't make sense but you gotta learn the markets.

In a tight market somebody will pay eventually. But it seems to me that when markets get tight, it's almost like shippers are 4yo toddlers who have to be dragged kicking and screaming to their room because they don't wanna go to bed.

Just refuse to play their games. And be wise about where you go. $2.50/mi to a $1.30/mi area is somewhat ok. But $2.15/mi to another $2.15/mi area is even better. Decide you want to average at least $2/loaded mile and stay in good areas, venturing out when the rate demands it.

Rollin Coal is absolutely right. Don't let them tell you what the rate is. Don't be shy. If they're calling your phone, give them an offer that works great for you and puts them in a tough spot. Brokers are good at that. Today I got an offer that I felt I couldn't refuse. 730 loaded $2000 to a remote part of Western WV. Broker knew exactly what it would take for me to say yes. But that's part of the game.

You have to, and this is what I'm learning, is that you have to put your feelings aside and take the best offer you can get. Doesn't matter where it's going. I don't want to go to where I'm going but I knew I'd be stupid to say no. Maybe I could gotten $2500 to PA. But much further from the good area than where I'm going to be.

Enough ranting.

It's all supply and demand. There is no limit to the rates except those limits in which we as the transportation industry place upon ourselves.