Broker Strategies/Tips

Discussion in 'Freight Broker Forum' started by gibbsfree, Mar 20, 2014.

  1. gibbsfree

    gibbsfree Bobtail Member

    40
    5
    Mar 20, 2014
    0
    Hi guys (and gals),

    I've been a lurker on these forums for a while, but this is the first time I'm actually posting.

    I've been working with our family carrier business for a year now, and we had our broker authority for a while but I am just beginning to utilize it. We are currently relying on using load boards to get freight for our trucks and drivers. In the past month, I have probably called over 50-60 shippers. It is EXTREMELY difficult to get these guys on the phone, but I was already aware of that since that is the nature of the business. Shippers don't want to answer cold calls all day, and when they do, they are not always in the best mood.

    The reason for my post is that I have not had any luck with getting loads for our trucks and drivers. Its not like we are a typical new-broker and don't have trucks ready to cover loads. We own over 20 trucks, and have O/Os working for us as well. We started off as drivers and eventually built our business up to the small carrier we are today. For that reason, we are really good to our drivers, and a lot of them have been with us for years. Some of the shippers I've spoken to either tell me they go through the big names like CHR, reddaway, etc or tell me that they not the right person to speak to. And majority of them don't pick-up and goes straight to voicemail.

    I am hoping this post will initiate a healthy discussion on some strategies you guys use:
    1.) contact shippers - When you guys go prospecting for shippers, whats your most effective method. i.e email, cold call, voicemail (I been hearing a lot of voicemails in this business), etc...
    2.) sales strategies and what works for you? i.e. Are you an average joe that asks "You have any freight to cover?" or do you take a consulting approach?
    3.) when you cold call, what is your success rate? 1 out of 5,10,20,50,100 calls gets you business?
    4.) I don't expect any of you to comment on this one, but I'll throw it out there: How do you find shippers that use brokers? Do you use your own database, SIC code searching, google?
    5.) what are you DOs and DONTs?
    6.) Any additional tips

    I know this business is very competitive and don't expect current brokers to share their "secrets". Rather, I am you guys will provide some tips to not just myself, but others on these forums.
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. gibbsfree

    gibbsfree Bobtail Member

    40
    5
    Mar 20, 2014
    0
    I'll try to start the discussion with some of the stuff I've been doing, and what hasn't been working.

    1.) I have mainly been cold calling. I have been able to find a few emails of some of the shippers I try to speak with, but have not received any emails back. i have also left voicemails with no luck.
    2.) For the shippers I am able to get on the phone, I typically try to cater my call to each shipper based off the products they sell or any information I can get from their website. I usually start with "Hi, my name is (name), I am calling from (carrier/broker name) and we specialize in (industry)
    3.) As of right now, 0 out of 50/60.. Have not received any business from cold-calling. Based off what I've been reading on these forums, cold-calling seems to work for some people.
    4.) I use our current database. I don't solicit to any shippers that we have used in the past 2 years. I try digging back to shippers we've use 2+ years ago and cold call them. I have also searched wit SIC codes on online as well for businesses and manufactures for the industries we specialize in.
    5.) My number 1 don't is to ask for the business right away from shippers. I try to engage in a discussion about how they use their freight and whether they are having any issues where I might be able to help them out. Please note I have had very few of these discussions (less than 5)

    I don't have much to offer, so hopefully this adds some value to the discussion.
     
    deviouseve Thanks this.
  4. rollin coal

    rollin coal Road Train Member

    13,083
    25,868
    Mar 29, 2008
    TN
    0
    Pounding the pavement and trying to connect face to face would probably get better results. Even so rejection will be commonplace. Just because they said no today or next week, or the week after that - doesn't mean you don't have a shot. Sorry couldn't be more help but that was something that jumped at me. Everyone I know who's been successful grabbing direct customers mentions making these connections face to face in person most every time.
     
  5. wichris

    wichris Road Train Member

    4,243
    8,447
    Jan 17, 2011
    0
    Use ten's. 1000 calls, 100 will talk to you, 10 will want rates, 1 will become a customer. If you don't thrive on rejection don't make sales calls.

    Far different than selling your services to a broker. A broker has a load now, you have a truck now. Negotiation begins. You're selling in the present.

    A shipper has someone handling it at the present, you have to sell that service in the future. So you have to sell them that you can do it better than the one handling it now.
     
    gibbsfree Thanks this.
  6. gibbsfree

    gibbsfree Bobtail Member

    40
    5
    Mar 20, 2014
    0
    Agree with both of you guys, rejection is so common in this business, and if you can't handle it, then you're in the wrong business. I am already aware of that fact, and getting rejected countless times kind of threw me off in the beginning, but now it isn't a big deal at all.

    Just as a follow-up, how long do you guys spend a day,week, or month cold-calling? Or in rollin coal's case, meeting face to face?

    Rollin coal,
    No that was helpful. Just curious, how do you go about getting people to meet with you face to face? I mean, it would be pretty presumptuous of me to think that these shippers are willing to talk to me and give me some of their time when they don't know anything about our company?

    Thanks for the positive responses guys.
     
  7. wichris

    wichris Road Train Member

    4,243
    8,447
    Jan 17, 2011
    0
    Are you trying to sell as a carrier or a broker? Or both? What do you do as a carrier(or broker) that sets you apart from the others? You need a spiel that is accurate and fluid. Most that you are trying to sell to are experts(just from volume of calls)at smelling fear/hesitation/BS. You can do 50-60 calls in a few hours. Set aside 3-4 hours to make 50-60 calls everyday. Rest of the time research.
     
    gibbsfree Thanks this.
  8. gibbsfree

    gibbsfree Bobtail Member

    40
    5
    Mar 20, 2014
    0
    I've tried both approaches. I'm not sure if shippers will expect me to give them cheaper rates if I tell them I am a carrier. I've been thinking of ways to differentiate ourselves. The first thing that popped up in my head was on-time pick-up and deliveries. As a carrier, this has always been one of our biggest points of focus. There was a shipper we worked with a year back (through a broker) who had a huge issue with on-time deliveries since the shipper's customers would place orders and expect them to be delivered within a week. I had just started with our company at that time, but I remember my brother telling me how the shipper always wanted the broker to use us to haul his freight. Not sure how big of a deal that is with shippers, but that might be a point worth mentioning.
     
  9. rollin coal

    rollin coal Road Train Member

    13,083
    25,868
    Mar 29, 2008
    TN
    0
    I don't even bother with direct freight. I'm a one truck show operating load to load in the here and now with brokers or 3PL's. I can wrangle and haggle with the best of them on load to load. Selling a fleet and trying to nail down a big long term contract? There a several fleet owners and managers here (as wichris) who deal directly with shippers either as a carrier, broker or both. There are also several one truck operators on here who do a lot of direct work. That's why I say not much help but I do understand rejection just as well, along with persistence, and confidence. Like he said they've heard it all (just like brokers) and they will sense if you're ill at ease or unsure (just like brokers). Everyone says they will be on time every time. Not everyone delivers. Always be people of your word on that. How to get a foot in the door to have that shot? Keep trying. Learn from your mistakes. I'd be asking what they were looking for to meet specific needs or why they rejected me if they didn't say. They may end it without answer or you get good feedback.
     
    gibbsfree Thanks this.
  10. wichris

    wichris Road Train Member

    4,243
    8,447
    Jan 17, 2011
    0
    If a customers main concern is rate just thank them and walk away.(as a carrier) As a broker price and service will count. Never heard of anyone selling that they are not on time, everyone sells that. Some deliver it, some don't. Only time tells if that is true.

    Remember, if someone jumps on you right away ask yourself why? Maybe the God's were with you that day and their carrier/broker just screwed up bad. Or maybe they're looking for their next victim.



    Something I make all salespersons do, record your spiel and listen to it. Like making a speech in front of a mirror. Be truth-full and spot your weakness and correct it.
     
    NHS, deviouseve and gibbsfree Thank this.
  11. bruceb

    bruceb Bobtail Member

    38
    12
    Feb 6, 2013
    Manheim,Pa.
    0
    Nice discussion started here.
    Hearing your experience makes me wonder how anyone could be successful trying to solicit new shipper business.
    If you already have 20 trucks, you must have some kind of customer base that takes you from point a to point b?
    What region of the country are you located in? What type of equipment do you provide service with? Flatbeds, Vans, Reefers ?
    You have to determine what it is that your company does that would interest a shipper in listening to your story.
    I don't understand the brokerage part or your question. Are you looking for freight to carry on your trucks, or new business to operate as a broker using brokerage authority to obtain capacity for the new business.
    I do a lot of research before making a sales call to educate myself on the target company to have a meaningful discussion if I do get to talk to somebody. I google the heck out of the company and if I have a prospect's name I google that also. I want to be armed with info to let the person know that I took the time to learn something about them instead of saying Hey do you got freight ?
    I am not looking to add a new company with cheap freight and fight with others in moving cheap loads. You have to understand that some freight doesn't warrant a good rate and search for companies that have products that might warrant a decent rate.
    Large companies are off my target list. Small to medium size business is where I prospect.
    Hi my name is BB and I represent ABC and I'm bothering (contacting) you today to offer assistance with shipping your widgits. What I want to say next I don't have the courage to but I should ask By the way what are your days to pay terms as my accountant doesn't want me to work with any company that pays later than 30 days. Who wants a new customer that doesn't pay promptly.
    You have to present yourself as somebody that knows trucking, is interested in their business, and is helping other shippers get freight to their customers on time, in tact, with good communication, with a professional driver with good equipment, at a fair rate.
    Whether it is your company equipment or thru a partner carrier by brokering, the shipper doesn't care IMHO. They just want it done without problems.
    I enjoy talking with strangers, am extremely inquisitive, and have a sense of humor. The person on the other side of the phone probably has been doing the same thing day in and day out for years, doesn't like change, doesn't like talking to strangers and is overworked, underpayed and would like to end the conversation quickly so they might say Send me your information and I will take a look at it. My bosses have always told me that this is the end of the relationship but I know differently and thank the prospect for their time after I get their email address, which was my goal in the 1st place. I am not looking for 10 new customers nor 5 nor 2 or 3 in my game plan. I am looking for 1 new customer to help at a time. Just one. A good paying one that I will devote time and efforts to become in their mind someone who trusts me with their freight and will know in the future that by tendering their load to me that I WILL GET IT DONE. No Worries.
    Relying on load boards to move freight doesn't work anymore for me. Most of my time is spent prospecting for carriers to carry the freight I have at present. I would be hard pressed to speak honestly with a new prospect today and tell them that I could help move their freight.
    I am going to start calling companies in the areas where I need to pick up and ask them for referrals on who they recommend I call to move freight from their area. I will tell them flat out I am struggling for capacity for my customers and that is the reason I am calling them.
    Hello my name is BB from XYZ and one of my customers is asking that I pick up nearby for another company to go to AcC city, could they think a minute on who I should maybe call that might be able to help me. That would allow them to feel at ease talking to a salesman and maybe they can help me or maybe in this discussion I might ascertain that hey where did you say you ship your widgets? I do have capacity there.
    Enough info about my methods, please elaborate on what you are seeking specifically. If you have 20 trucks I might be able to give you a load.
     
    NHS Thanks this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.