Think it's time to go after more of my own customers

Discussion in 'Ask An Owner Operator' started by gokiddogo, Nov 28, 2018.

  1. gokiddogo

    gokiddogo Road Train Member

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    Frustrated this week. Have been doing a few regular, steady pay loads home (delivers about 40 miles from the house) rate was steady last year, everything was smooth. This week another broker has the same load (I know it's the same buyer) offering flat rate about $400 less than the average rate last year. First broker I started with last year doing these loads was my first call, he says "these are moving at (1200 less than last year) and I'm having no problem covering them." Translation? I am going to rape. I prefer steady rate all my regulars know that. When I turn the tables and rape? I am public enemy #1. The end result? I don't even want to play the game. Just book me at a steady rate ahead of time and I am happy. Most of the time I just tell them to forget it. These loads the pickup and delivery works very well into my big triangle run I do. Rather than deliver to Toronto then come home empty I can deliver just short of the house and shoot home empty saving ~400 miles. I also had another line today, "best quote so far is x, can you beat that?" No. Give it to the chump then.

    I am considering going to the buyer near home and asking if they will deal directly with me, at the same rate, every single time. Only change if fuel moves up or down and will change rate just slightly. The issue making me have cold feet: first broker said to me he moves between 15-20 loads per week for this buyer. The most I can cover as a 1 truck operation would be about 2 per month; from approximately mid November to mid June. On one hand, I want the steady, plan ahead rate. On the other hand, I don't want to be the guy with limited capacity and give them more no's than yes's. If I go down this path I don't feel like I'm burning any bridges that are worth much anyway. This buyer I'm sure also has lots of outbound lanes as well. Should I feed one of my steady brokers the customer information and mame the deal with them? They would have the capacity to cover more than I can. If you screw me then I will screw you back and I will go direct. I have a handful I'm sure I could do exactly this with and it would be steady as she goes. Just thinking out loud.

    Something else to note. I am nearing the point to decide whether or not I want to have more than 1 truck. I have reached the top, as good as it can get, for what I enjoy hauling, for my area. I pull reefer, and have no desire to do anything else. I have identified suitable land and have a plan drawn up in my head of how to go about it. My summer time direct customer wants me to add more units. My steady brokers would load more units. It's really a question of do I really want to go down this road. I can tic tac toe good paying loads together like nobody's business. With more units I could have less empty miles and a higher average revenue per mile. The drivers can have all the miles they want; just be fine with running in cold weather. Western Canada trips + on to va/nj/pa and return for shorter runs. NYC if you want it. Summer time probably keep 3-4 units busy home daily 5-6 days a week for about 10 weeks. I work hard all summer on that short run then take a week or 2 off when the frost ends the growing season. I enjoy the variety. My steady revenue streams don't even ask about rate, it goes, "when would you like to pick it up and drop it off?" It is so easy.

    Anyway.... technically I guess this would be back soliciting. I haven't pulled these loads yet this winter. Are there any legal ramifications or is there some sort of etiquette to go about this? Should I say no thank you not pulling those loads this winter, and follow through with approaching the customer this time next year? If there is some 2 year clause, does that even mean much? As in; will I still face being possibly black balled by this broker even if I wait the 2 years? I will admit I don't read every word of the broker carrier contracts.

    For the brokers or independents with direct work: Are most customers happy to pay steady over the long term direct to the carrier? Even as the market shifts up or down; do most customers want to lower the boom on the rate every time someone else calls and offers to do it for less? Or is it pay me steady and only talk about significant fuel price shifts and be done with it. ? I am not asking for crazy high rates. I want somewhere between what I was being steadily paid and a bit less than what I figure the broker is charging and lock it in. Loyalty is what I want. Did I mention I hate this poker game where even when I win I am made to feel like a thief or rapist?

    That's enough. I realize it's scattered and all over the place. I never excelled in English class. Giving x1 a run for his money on post length here.
     
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  3. Jazz1

    Jazz1 Road Train Member

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    Good post. You stayed on topic while making your points without running on with endless war stories:D
    I rarely read a post over one paragraph.
     
  4. Midwest Trucker

    Midwest Trucker Road Train Member

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    I don’t back solicit. And I’ve been back solicited by a carrier with my very small brokerage. The customer pulled 4 or 5 loads a week from me because the carrier passed the info to their brokerage that works under another name but is the same address. I couldn’t afford to sue. So, it really pisses a guy off when a carrier is shady and the customer doesn’t have loyalty because all that matters is the rate. I’ve also had a very loyal customer try to be back solicited and the transportation manager emailed them back and said you better call the broker (me). I emailed the carrier and of course never heard back followed by black listing them. Loyalty is so rare. When you find it, cherish it because it’s not the norm.

    Most customers lower their rates just as soon as they can unless they are in this rare group that values longevity and service. So, a huge misconception with so many people is that if they get their own customer then they will make so much more not going through a broker. It’s just not true very often.

    If you are good st what you do then focus your energy more on adding another truck as your good at it and can control it. The rate and customer game is more out of your control. Maybe if you get enough trucks going where you quit driving then you can place some energy in that area.

    Just my opinion.

    Ps. The brokerage that stole my customer turns around and brokers these loads back to their own trucks. I layed the entire thing out to my customer who I had busted my ### for over three years and they didn’t care. Needless to say I quit caring much about their freight and only haul or broker for them when they call needing emergency help and I make them pay out the nose for it.
     
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  5. gokiddogo

    gokiddogo Road Train Member

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    I have never back solicited either, more as a matter of principle than anything. My direct customer called me out of the blue one day, and I had not hauled for him at all previously.

    I guess what I mean is.... why is it so difficult to simply get a steady rate for the same job over time? When the game is in our favor, and I tell them a price say $2500 higher than where I will really settle and stick to my guns, I am the villain. When the opposite happens, I think the same of them. Rarely are they on the average I am accustomed to right from the start. Why all this trying to screw each other? When it gets hostile like that honestly I rather just find a different commodity to haul altogether. Hire cheapo filippo and play the game. Does he inspect the produce before loading and notify you of substandard quality or out of range temperature? Does he give an accurate eta and communicate effectively? Does he follow through with the deal keeping his word, even if a juicy offer comes in? Maybe none of that matters.

    For what it's worth these are onion loads. I prefer to be paid by the bag rather than flat rate because I feel it is fair for whoever pays the bill. I have a max payload of ~43500 and they always want to load ~45000. Rather be up front than have them think they got rooked out of 1500 pounds of payload. I generally load 815-825 bags of 850 ordered. Normally I hate leaving part of the order behind, but it's a little different with onions.
     
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  6. fordconvert

    fordconvert Light Load Member

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    Speaking from 19+ years of experience of being the owner of a small courier fleet, I will say that if you are much more comfortable with ‘steady and predictable’, you will likely not want to add trucks/drivers to your business. As you know, more trucks and drivers means you will need more business from more clients to attract and keep more drivers, only to dilute the net profit received from doing the same work with one truck. Yes, your income will increase, but you would be putting in much more effort to get it, and you can’t simply take your current rate, and then add to it the costs of a driver and equipment. Customers will come and go because they are chasing the lowest shipping costs. Quality of service is becoming less of a concern because it is so easy to recoup any losses should any damage to cargo occur.
    This is not the case if a production line is depending on your timeliness, but anything short of that , your rates will have to be very competitive.
    Try finding a driver of any caliber these days. You will have to provide/offer competitive benefits packages to get anyone to even consider working for you, and then you have to keep them happy too.
    It’s a tight rope walk for sure.
    Everyone has their own talents and tolerances. Myself, I sold out my business and went solo. Wouldn’t want it any other way.
     
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  7. Tug Toy

    Tug Toy Road Train Member

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    Who’s to say if the shipper agreed to your terms today they wouldn’t use the next guy that comes In a nickel cheaper tomarow anyway?

    No different than they were using your broker yesterday and now they are using the guy that said he could get it done cheaper.

    I appreciate your feelings but this is the open market. That’s how it works.
     
  8. Midwest Trucker

    Midwest Trucker Road Train Member

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    You know I’m not sure why it’s so cut throat but it is. In a way I think it also comes down to people doing their jobs though. The shipping manager is tasked with shipping freight for the cheapest as long as other requirements are met like no damage and on time. The brokers job is to move these shipments and for cheap as possible so they can be profitable as possible. The carriers job is to make as much profit as they can so that bills can be paid and growth can happen. So it’s a tug of war constantly back and forth teetering on that supply and demand.

    I agree a more modest and consistent rate would be ideal and much easier but it’s impossible due to a common human trait called greed. Whether it’s the ceo of the shipper wanting to make their shareholders happy. Or the ceo of the broker, or the ceo of the carrier trying to stay alive and turn a profit. What I find is that in the bad times it’s really hard to be profitable so when it flips the other way you gotta be as greedy as can be to help bridge that next gap of slow times.

    It’s never going to change. The best bet that I have found is critical freight either timing wise or importance of the cargo wise. They will pay more for the service and protection. And will continue together as long as the rate is fair. Like I said it’s rare though.

    Some really good points. All depends on what your goals are and what you can stomach stress wise.
     
  9. gokiddogo

    gokiddogo Road Train Member

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    Original broker is lower this year from his old rate by 1200. New broker lower by 400. I have a hard time believing old broker has the same loads for less than new broker. Could it be a tale of old broker is actually the double broker this time around? How can I determine if it is the customer who has demanded a lower cost rather than first broker taking a much larger slice?

    Gotta find me something else. Getting tired of this.

    Another thought popped into my head. There is a romaine lettuce problem right now. A bunch of people got very sick, might be e-coli? In Canada the big grocers have thrown it all in the garbage. There should be a bit of a run to replace all that. Maybe it just hasn't worked it's way through the system yet. It seems the entire left coast ground to a standstill this week. Call on a load that pops up and "oh it's covered." It just hit the board. I was thinking demand would be high in Arizona where they ship a lot of it from to replace it. Therefore driving demand up all the way up. I done screwed this trip up. Live and learn, I guess.
     
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  10. stayinback

    stayinback Road Train Member

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    In Todays Climate- Yes,A customer CAN set the rate because of supply (Theirs no shortage of trucks..Only a shortage of trucks in the demand region)

    Carriers have Always "Set the rate" Going back before and after deregulation....

    The Only time a Customer "Set the rate" was a shipper,buyer,supplier had their OWN fleet but couldn't cover a move or 3. And found capacity quickly,(Due to a fair market rate) Their was no game of tug of war!

    Unfortunately,Since every Tom,Dick and Harry wants to be a Carrier or broker or combination of the 2 these days..........You'll Have Unethical practices as Midwest Trucker has shown.

    Honesty,Integrity and a Handshake Are Gone,(for the most part).....

    Give it time though.......With the Work ethic these kids have today, That's our tomorrow in transportation.....Youre really gonna need autonomous trucks.
     
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  11. MartinFromBC

    MartinFromBC Road Train Member

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    Wish I had a crystal ball to help you decide Brian. My impression of you is that you are a stand up guy, who would be reliable, and that is what people are looking for. Going for it maybe the best thing that ever happens to you...just try not to burn any bridges, so if you need to go back you can. You're an intelligent man, and I have faith that you will think it through logically, and not make a rash decision. I sensed your frustration on the phone this week, just didn't realize how much, I'm a bit thick skulled sometimes. Call anytime, even if you just need to vent.
    So i guess what i simply should have said, is yes people will pay a fair rate, and consistently, for reliable service like I'm sure that you would give.
     
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