Quote:
Originally Posted by RostyC
That's interesting, about the large carriers being so close in price. This is the part of the business that seems to be the hardest to learn for me right now. How to price freight to potential customers. When I was in construction I was usually close in price to the other bidders, because I knew the going rates for my business.
I have a family member who works for a company that ships freight on flatbeds and she wants me to contact her about putting together a price. I have not made contact as of yet because of my lack of knowledge regarding pricing freight. I never like to be the cheapest guy in town and surely don't want to cheapest guy in town because of my own ignorance of pricing freight. So that's what I'm trying to figure out lately.
Any suggestions as far as educating myself in this area?
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The rates off of a loadboard is no indication whatsoever of the actual shipper rates. Rates from direct-ship,u-ship are the same. The shipper is acting as a "broker" and seeking the lowest cost. Majority of shippers pay a fair rate for the area/lanes they service. You come in with way high(or way low) price and your info just goes in the trash. If you're lucky they will tell you that you're way out of range.
Eliminate seasonal fluctuations and what ultimately determines the rate is the truck/freight balance. Again getting that number off of some load board is in-accurate.(unless all you want to deal with is brokered freight)
There is no "magic" formula to rates. Thinking that you can "set"the rate is wishfull thinking. You have no more chance of that then setting the price you will pay at wal-mart.
Lot's of calls to shippers in an area and you can weed out the bs and get an average. Just ask what rate they want to pay. You'll find that most are very close in price.