The worst question to ask about a load
By Timothy Brady

How much does that load pay?This is the worst question you can ask when talking to a freight broker or shipper. Why? Because it puts total control of what they’ll pay on the load into their hands.

Picture this: You’re at the top of a cliff with a 400-pound boulder. You need to keep the boulder from rolling off the cliff to the bottom of the ravine, so you’ve wedged the leading edge to keep it steady. On the other hand, what if you have the same 400-pound boulder at the bottom of the cliff and you need it on the top? This is a much more difficult task. Now think of this boulder as your freight rate: do you want it at the top of the cliff or in the ravine? If you ask, “How much does the load pay?” you’ve just put your rate boulder at the bottom of the ravine. If you don’t ask the question, your rate boulder is on the top of the cliff. To be sure you’re not pushing it over the edge, have a log chain and come-along attached to the boulder. If you have to drop it, you can control its descent.

To keep your rates from dropping like a rock you need to know:

• how many days the load requires
• how many actual miles will be traveled
• the space and weight the load takes
• cost of fuel for the trip
• market forces affecting available loads
• your break-even point for the trip.

To make sure you get the best hauling rate possible, follow these instructions: 

• Never ask how much the load pays.
• Verify your load information is correct.
• Have a negotiation strategy.
• Know the absolute rate you must have, and never move from it.
• Quote a hauling rate which is well above your break-even point and end goal.
• If they accept your rate, you’re home free; but if they balk, negotiate.
• Never give something away without getting something of equal or greater value in return.
• If they ask you to give up something, make it seem like it’s painful.
• Anticipate the unexpected.
• Know your worst-case scenario, and when to say ‘no.’
• At all times, have your break-even figures in front of you.
• Be prepared to say ‘no’ and walk away.
• Always be polite and courteous. You might need them again.
• If the broker quotes an unacceptable rate, politely explain the rate is too low to meet your revenue needs, leave them your contact number and invite them to call you if they are unable to cover the load. You’ll be surprised how often you’ll hear back—and with an acceptable rate.

Negotiating hauling rates works like gravity—it’s easy to lower a rate; next to impossible to raise one.

Keep in mind, not every load is going to fit your revenue needs. Don’t be afraid to say no, just be polite and leave them a means to get back in touch if they should change their minds and find your rate acceptable.

In other words, keep your 400-pound freight rate boulder under control and at the top of the hill, and you’ll make the money you need.

Good loads and good roads, everyone.

Timothy Brady
© 2010n
www.timothybrady.com 
731-749-8567