[allan5oh]

How do you get the foot in the door with a customer?

Do you haul a load for a broker, in the meantime, slip the shipping manager your card?

What kind of "edge" do you try to sell them? I would have my cell on 24 hrs a day, is that really important?

What about stone cold sales calls? How well do those work?

[GMAN]

Most brokers have language in their contracts which forbid carriers from back soliciting their customers. If you solicit them after hauling a load through their broker, and they find out, you could be liable for a percentage of anything you haul for them for about 1 year. It is difficult for a broker to collect or enforce this clause, but most have them. The better brokers don't bother since they know that as long as they provide a good service they can keep the account.

If the shipper asks for your business card or suggests doing business with you directly then you are not back soliciting, but it could create some problems in trying to prove it, but not impossible. If you want to develop your own shippers then you need to get out and start knocking on doors. You can make phone calls, send letters of introduction, business cards, brochures, etc., to get your name out there. You will likely need to make a lot of calls before you find a shipper who is willing to do business with you.

I have had a thought about a dispatch service where several carriers could pool together and service some of the larger accounts. It would provide the capacity the shipper wants without giving away the farm. Many shippers prefer doing business direct with carriers. The reason so many use brokers is that they can deliver the capacity to take care of the shipper's needs. Developing your own customer base takes time. Contrary to what some have stated, you can make a living using brokers. You can usually make more with your own shippers. You CANNOT make a living by taking cheap loads from either of them. Find brokers who have better rates and try to stick with them. Stay away from brokers who consistently have cheap freight. Find those who have good rates and start making sales calls as you can to develop your own shippers. You could try to locate those for outbound freight and use brokers to get you back to service your shipper. Eventually you can find shippers on both ends.

[pepe4158]

Yeah 90 days I think the agreement states I sign that I cant haul for the shipper after accepting a broker load....its ruff starting out and trying to get shippers direct, most dont trust you enough to give you a shot, but suprisingly will use the big carriers who routinly lose their freight on their yards

[LOAD IT]

Everything G Man said.

[pepe4158]

SSay G-mam...isnt there a board right now like that?...I mean that pools some resources together?
Heard there was but forgot about it?

[RostyC]

Pepe, I think you're thinking of this one. I don't think it's what GMAN is talking about though.

GMAN, you'd probably just be considered a (geez G I respect you a lot but I have to say the word)...................... Broker :shock: :shock:


:lol:

Maybe a little more explanation.

[rank]

We did 40 loads for one shipper last year. I think I called the broker on the first load and the subsequent 39 loads the broker called me. Yes the broker is still involved because that's the way the shipper wants it, and I certainly do not mind because rates are good and they pay fast. The shipper often tells the broker to call us and pay more if necessary.

You need to be able to make things easy (save money) for your customer. Figure out how you can do that and you will get shippers. Most guys with one truck will only make things more difficult, so your only way to save them money is to be the low rate. You can be more competitive pulling for local shippers

[GMAN]

Originally Posted by RostyC

Pepe, I think you're thinking of this one. I don't think it's what GMAN is talking about though.

GMAN, you'd probably just be considered a (geez G I respect you a lot but I have to say the word)...................... Broker :shock: :shock:


:lol:

Maybe a little more explanation.

Pepe, if you are talking about Realtime, rates are very low. I tried the service for one month and canceled. I can get better rates than they offer through a broker. Some shippers offer loads through them but the rates are very low, at least from what I saw.

RostyC, when I say dispatch service, it would not be brokering. Basically, a dispatch service would do the hunting and negotiating for you but represent the owner operator or carrier rather than the shipper. A broker works for the shipper. The broker usually makes more money when he gets a carrier to haul a load for the least amount of money. A dispatch service would make more money as the carrier earned more, at least if it was set up as a percentage of the rate. The dispatcher would watch the loadboards, make calls to brokers and shippers in an effort to find the best paying loads. The dispatch service would only work with those who had their own authority and insurance. It would be similar to leasing on to a carrier but you would be responsible for all insurance, logs and compliance issues. The dispatch service would only search and book loads for you. The other difference is that you would pay a much smaller percentage of the rate than if you leased to a carrier. Most carriers keep 25% of the line haul. But there is a lot of expense involved when you lease on owner operators. You see, when you lease to any carrier they are responsible for paying the cargo and liability insurance on each truck operating under their authority. They must also participate in a drug consortium, check logs, etc., It is expensive to lease on owner operators. When you look at all the expenses a carrier has, the percentage they take doesn't look so bad. By utilizing a dispatch service, you get rid of the most time consuming aspect of your operation, finding profitable loads. I spoke with one guy the other day who has a dispatch service and charges $250/week. According to him, his people do very well. I think a percentage is more fair. That way the carrier only pays when they book a load. If a carrier takes off a week under a flat rate system, he is still obligated to pay the dispatch service. A percentage is more equitable since you only pay for the service as it is rendered. If you take a week or two off then your expenses stop. With percentage, the higher paying the load the more everyone makes. There is more of an incentive for the dispatch service to find the better paying loads. If the carrier wants more services, then the percentage could go up accordingly. The carrier or owner operator still has the freedom to run when and where they want. They also decide whether they want to take a load or not. The dispatch service would work in behalf of the carrier or owner operator.

[slacker]

I bet I lose more than $250 per week because I sometimes take loads within my parameters (especially in low freight areas), without taking the time to search for better paying loads. I pull some of the same loads every week or two, just because there is some familiarity with the route, pickup and deliver.

My wife helps me with some of the calls, but she really can't negotiate the rate very well.

I would think a dispatch service would really need to be ex brokers, with contacts??? I think the dispatch pool is a great idea.

jonboy

[GMAN]

I don't think one would need to be an ex broker to make it successful. Contacts would be good, but negotiating skills would be most helpful. I think it could work. I suppose that I just need to decide whether I want to pursue it or not. Looking for good loads takes a lot of time. It usually doesn't take much of an effort to throw something on the truck, but finding the best loads takes time. Most smaller carriers with whom I talk seem to spend most of their time finding good loads. They don't make money until they move freight.