HOW TO NEGOTIATE FREIGHT CONTRACT’S
FREIGHT BROKER TRAINING
Freight companies supply transportation internationally, domestically, and
Local in the same city. They ship all types of freight from liquid
Foods to dry goods to gasoline and Hazmat items. Businesses rely on
Freight companies to “transport their product” from the supplier
To the customers. The business will sign a contract with the freight
Company to move their product. Companies who learn to manage their
Freight costs can negotiate the cost with the business. In the
Middle is you the “truck driver” learn how to negotiate the best
Rates for you! Do this in a positive and productive way. So you can
Earn big bucks as an owner operator. There are two types of
Negotiation, “one time and which is about power and knowledge”
“Long term is about building a relationship and problem solving”
The latter will give you less haggling and better rates.
#1 know your costs!
It is your Responsibility to know your own costs. So you will know whether or
Not you can take the load and what it pays. The load should cover all
“Variables and costs”, and deadhead miles!! What kind of profit
You want should be settled before you start haggling with brokers.
You really need to know fixed costs per mile, and per day very
Important! Add up truck payment, trailer payment, insurance costs,
And divide that by 17. “Why 17?” there are 20 weekdays in a
Month, and leave 3 days for space cushion. Ice. Breakdowns, waiting
On a load, traffic. Then know your variable’s fuel, Tires, and
Maintenance. Use the costs when haggling with a broker. Sometimes
It’s best to deadhead for a better load if you don’t know the
Costs you can’t make an informed decision.
#2 know the broker.
“It’s Your responsibility to check out the brokers credit rating and
History.” Red book Trucking
Is $160 a year. They offer owner operators reliable rating for many
Brokers. Also online load services offer this, Truck stop
And Truckers edge .
With internet truck stop you can get average days to pay, for brokers
With a history in the (I.t) system, says director of sales and
Marketing Leigh foxhole. Membership in the transportation
Intermediaries association is a good indicator of a broker
Standings. With more than 12,000 brokers there are only 1200 Tia
Members. According to Tia website their member carry a bond level of
$10,000 or higher. So get a brokers rating before using them!!
#3 know the market.
When Negotiating with brokers you can tap into a huge amount of
Information about your market. The big carriers already have this
Information so should you!. So you can be much smarter about “pricing
And supply and demand.” Rate indexing allows you to see average
Per mile rates so you can compare them to rates over a period of time
In those lanes.
Use Tran core’s rate index pro tool. You can see
Which lanes pay above the national average. You need this knowledge
To broker the best rate’s. If you don’t know this info your
Definitely at a “big disadvantage” over other drivers. Trans
Services start at $35 and up per month. The ratio of loads to trucks
Is also a good thing to know when negotiating. Use this information
When planning for your return trip, or next leg. So for instance
Rates are good from Chicago to Denver but not very good coming out of
Denver, you can use that information when making a deal to get back.
Preplanned gets you into some of the long term negotiation
Strategy’s. So what you want to do is look for a good load out of
Chicago but also see What’s a good lane out of Denver. Say Denver
To Seattle pays less than Denver to Atlanta, then what’s coming out
Of Atlanta and so on.
#4 Always ask questions!
An Owner operator who has the desire to know the details is negotiating
Smartly, and is a driver who can be counted on to move freight. “It
Will show the brokers that you can perform well”, and says a lot
About you and your business. Good communication and being honest and
On time beats price Anyday. “Those owner operators will get more
Calls and better rates.” By asking questions you’re improving your
Conversational skills this is the key when negotiating. You should listen more then talk. Don’t
Ask yes or no questions, and let the broker talk.” Let him describe
Himself in detail tell you what loads are available”, and assess
Whether or not you’re a .Knowledgeable operator. The final
Contract must benefit both party’s for a future business
Relationship. If the broker is always loosing he won’t do further
Business with you.
Freight Broker Training
Saturday June 09, 2012
From: Dennis Brown – Owner FreightBrokerBootCamp.com & CEO Logistic Dynamics, Inc.
I am living proof that you can make huge money as a freight broker or freight agent! The fact of the matter is you don’t need to be a rocket scientist to make money as a freight broker but like any business, there is a right way and a wrong way to go about it.
When I started I had absolutely no experience in trucking or logistics and now do over $3,000,000 a month in sales!
So what is a freight broker?
Freight brokers help shippers that need to move freight from point A to point B by finding a carrier (trucking company) that will haul the freight for slightly less than the shipper is willing to pay them….thus the term BROKER!
In other words freight brokers, sometimes referred to as load brokers, truck brokers, or transportation brokers, are all middle men that match available shipper freight with available trucks while earning between 10% and 35% profit per shipment.
That means brokers typically earn between $100 to $500 per shipments but I have earned as much as $5,175 per shipment just for finding a truck to haul our customer’s freight!
Now the only question is how many loads do you think you can you move per day…. 1, 2, 10 or more? Before we get to that…
Why become a freight broker?
- No experience is necessary to get started!
- Be a part to a $400 billion industry that is growing!
- Run your business from home!
- Very low start up cost!
- Huge income potential!
- Brokering doesn’t require employees!
- Do business anywhere in the U.S. Canada or even International!
- Easy to relocate, all you need is phone, internet and KNOW HOW!
- You can always sell your business or pass it on to your family!
- Easy and profitable add on to existing trucking operations!
- And much more….
No special background is required to become a freight broker. With the proper determination and training almost anyone can become a freight broker.
So What Will You Learn In Our Online Freight Broker Training?
- Learn your role as either broker or agent
- How to reduce, and even eliminate, unnecessary startup costs
- How to apply for your freight broker license
- How to get your freight broker bond or trust
- Learn what tools you need to effectively operate as a broker or agent
- Learn the pro’s and con’s of factoring invoices
- How to find and contact shippers
- How to navigate business credit, both yours and your customers
- How to find, negotiate and contract with carriers
- Learn the difference between co-brokering and double brokering
- How to properly dispatch and track your freight
- How to quickly and cost effectively setup your home office
- How to use loads boards effectively
- How to easily and accurate understand rates in almost any lane
- Learn successful selling and negotiating strategies & techniques
- How to get involved in niche markets like automobile transport & dump trucks
- How to start shipping for the Dept of Defense (DOD)
- How to make money even more money by adding independent freight agents
- Learn proven strategies that can propel you to into profit quickly
- And much more!!!!!!!!!