Psychology of broker negotiations

For one I don't call tql, two I don't call JB hunt on a load with a date way down the road, my go to is Coyote, 9 times out of ten if I call Coyote I am going to pull the load, next up hub and there I have my guy that I deal with, then so on, arrow want you to work for free so they are a waste of time, so in nut shell if you are working with a broker that take care of you in return you do the same, every one set out to make money, at the end of the day each driver come up with one thinks is best for them, you have some set of people know that like to wash their feet in the sink at the truck stop, there truck will in most cases don't even make it to there drop, they don't think about how the business is down there hear 1500 dollars for the load and they say yes thank you, but wait 1500 to run 1500 miles are more, those guys are one of the biggest problem why the rates are going lower and lower, so you think broker are going to go higher with there rates no the broker will call them on give them the load for nothing, which is almost like insider trading, we did FEMA loads and they run teams but the other one got a LP but because crst on other they label them as team on they take the work on know FEMA loads are not worth your time we would get 1000 weather we work are not know they tell 350 are if you luck 650

 

The broker - carrier spot market negotiations resemble a flea market negotiations. You just argue for a given unique load rate, that may never happen again. There is perhaps more negotiation skills and science involved when a carrier approaches a shipper to earn their business.

 

I personally don't leave a lot of room for negotiations. I know where I need to be at on a daily rate and I go from there. For everyone that I take I probably turn down two dozen others. However I do not sit in any one place more than a few hours between loads.
There really is not a psychological question to it at all, this really is business 101. You have to understand proper cost accounting and truly understand the market of where you are and where you're going. Many people just follow loads and high dollar signs. Well looks good on paper in reality, not so much. These people typically find themselves pulling Freight at a $1.15/mi and complaining that others are driving down the rates.

There really is no secret to this however, as a broker the best thing you can do when you put a load out there available is look and see exactly what kind of feedback you get from that rate. If I call you about a load you give me a price and I laugh at you take it that you've probably bid a little low. The flip side if I call you and accept your price without question it's probably a safe bet that you are definitely within the market rate, at least for me.
Pay attention to the feedback and adjust accordingly.

 

Drama doesn't matter. Know your ever-changing total operating costs pre-mile to the penny. I don't really care or have time to negotiate loads that they are offering to low for whatever reason don't buy into that drama. Make your offer and move on. Let the little fish in the two dollar trucks who love to run for fuel costs and give crappy service making pissed off customers take the underpriced loads. Be professional, Never nickel and dime the broker for customers faults and problems, Demand premium prices for premium service. I work regularly with 8-10 brokers and I have my own authority with two late model clean trucks and looking to get a third. The brokers respect professionalism by offering high paying critical loads that need no fail professional service and they throw the rest to the load boards to steering wheel holders. The brokers I work with know if my company accepts a load it will be on time in a professional manner every time at any cost without fail.

 

What can a man with one truck and trailer say to a broker to give him a desired rate? The negotiation skills at this level are only about being strong enough not to give in to a broker's begging for lowering your rate when you know that you can squeeze them. For instance, last year I was able to book loads from IL to VA for $2500 every day, this year you ask for as little as $2000 and they tell you "Oh man ...1600 is all I got in it, can you help me out? So if you are a compassionate type, it could be difficult at first. On the other hand, if you are a man with a masculine pride, you will not beg a broker and explain why you need more...but then if someone can do it, he may get $100-200 above what's considered a lane market rate. A friend of mine effectively uses his wife to do begging ... convincing. It is more effective when a sweet female voice is asking for more money than a man, it seems. LOL

 

LOL I use my wife as well. Her nick name is the WARDEN. The funny part is this slump in prices is ALL broker driven. The manufacturers are still paying the same shipping prices as last year. What I have found to be the best return is to talk to every customer's shipping departments manager and leave a business card asking about becoming a dedicated customer by removing the broker and offering a better rate for both of us. Have gotten two nice dedicated runs this way.

 

Isnt that called back solicitation?

 

You are given one number for a service. Say Truck load from Fairbanks to the area of Little Rock AR. WHoo HOO KACHING... hold on there pard....

After some dither we knew the company was coming back empty anyway to Montana from Fairbanks. So that's their cards on the table. Our cards is simple. Pay as little as possible because we were literally individuals hiring a 18 wheeler for freight from there to here.

We topped out at 5500, which was the rate that would have to go one bill when that truck arrived in Arkansas.

The next thing we were asked do we know where to stick that thing into a proper dock. Yes and no. Yes we knew were to put it but we did not have the knowledge if it would be permitted or not.

They dithered.

We hemmed and hawed on our end.

Finally a lightbulb in my mind hit me. For the freight that would be in AK, retail here in Arkansas for the same stuff would be approx 3000. plus tax.

So much for the truck that arrived in Montana Empty. No hard feelings. They were going out empty any way unless we committed to that haul.

Another negotiation I took part in was a sizeable generator, for a cement slab to support the house. We finally reached the price on the #### thing. Now we talk about mileage rate from Florida to Arkansas. We didthered some more. Finally we were handed a few other rates that created a nice sizeable bill for the broker and company.

Might as well buy the #### thing in Little Rock Retail and have a contractor set it on our slab.

And you wonder why freight is soft.

 

You don't have to overthink this. It's not so much psychology, although it is beneficial to understand how people act/react in certain circumstances, it really just comes down to the rate will be what it will be based off demand for trucks. Sometimes more has to be paid and sometimes not.