Spot Market Negotiating Strategy #12... High Fuel Cost Is Your Friend - From "Negotiating with Freight Brokers & 3PL's"
STRATEGY 12 – HIGH FUEL COST IS YOUR FRIEND
Brokers/3PL’s have held onto fuel surcharges for years and not passed them along proportionally to carriers. Do not make a general statement or complaint about the price of diesel. Do not go on about how hard it is to make a living now, be specific, and use a real example. “I hauled a similar load a month ago that paid more per mile, and fuel has gone up 5% in the last month. The higher rate you get shouldn’t be directly proportionate to what your actual higher cost of fuel is on the load, in fact, it should be much higher.
You have had to cash flow this meteoric rise in fuel the past few years. It would take a rocket scientist or two to figure out how much the rise in fuel prices have actually cost you. You are just “framing” and letting him know the price will be higher based on that fact alone, not including all of the other strategies/facts you have already brought up. If the Broker/3PL wants to get scientific and explain that it only will cost you “x” more at 6 MPG, etc. Go into detail about the higher fuel costs in states you have to go through and the load weighs 44,000lbs so your fuel will drop to 4 MPG between the weight and the hills… Remain calm, likeable, specific and unemotional, in your conversation.
Remember C.L.A.S.S. in all your conversations. Explain your reasons calmly, especially if he or she gets insulted. Try and calm them down, i.e. “I am not trying to be greedy or unrealistic; this is just the reality of hauling this load. If they won’t or can’t see the reality, simply thank them for calling and offering the load to you, but maybe it’s just not the right fit right now.
