After I had written, but, before I began publishing and marketing the best selling "18 Wheels of Justice" series, I scoured the Internet for similar books or discussions on negotiating in the transportation marketplace. I was shocked that I found nothing worth purchasing or for that matter, reading.
The many self proclaimed "Experts" in our industry offer nothing on the subject.
(Industry - Trucking arena, not Brokerage. I will address Brokerage "Experts" next week)
The only information available was:
1. Know your cost!!(Fuel, Tires, Insurance, Maint. ad nauseum)
2. Demand your rate!!(Don't haul anything for less than what your costs are plus your profit!!)
This is all I could I find.
Sage advice? Hardly... Educational? I don't see it and I didn't read this and walk away with knowledge to put into practice...
Negotiating is an art form. Individual and unique by nature in each transaction, but it follows a natural basic design and pattern. Good negotiation never involves an auction style bidding process, nor a standoff based on price alone!
First, let's discuss the basic and natural design that every negotiation follows. Every aspect of every single negotiation can be broken down into three phases.
Yes, there are just three. I don't care if you’re negotiating for a new car, a truckload of freight, a first kiss or a first date, everyone single one follows this simple design.
When you take the time to understand these steps you will recognize which phase you're in while you're negotiating. An important thing to know, because the person on the other end of the phone or across the table from you, most likely, doesn't know that the phases of negotiation even exist. That being said, I would also say it's safe to assume they also don't know the phase and purpose of where they are in this process at this particular moment in time.
It is very simple, and if you replay your last negotiation in your minds eye, slowly, you will see how it followed this pattern...
1. Pre-Negotiation, Framing.
2. Arrested Development, Impasse, Stalemate, Deadlock, it's called many names, but it’s all the same concept and a beautiful one at that...
3. Transaction, Settlement, Agreement, is reached and everyone is satisfied. Not necessarily happy, but satisfied.
Now, using the conventional wisdom available on negotiating, which I have read, seen and heard over and over in my many years in the transportation business, I will use that same approach on justifying the cost of my Book and CD. To keep things simple, I will address the price of my book only for this discussion - $49.00. I have received numerous emails asking, "Why the high price?" or "I see books all the time for $9.99?", and my favorite, “I saw a book in a truck stop for $4 once.” Let me break it down and try to sell it to you in an approach used by most owner operators, small fleets & carriers operations departments today.
18 Wheels of Justice - Negotiating with Brokers & 3PL's - "The Book"
My cost per book for each one sold. (I had my accountant break it down over the week-end)
$ 6.94 Actual Cost of Book from Publisher
$ .30 Shipping from Publisher
$ 4.24 Alimony paid to 1st ex-wife
$ 9.87 Alimony paid to 2nd ex-wife
$21.40 Cost of romance for much younger, soon to be third wife
$ .32 Private Chef
$ 1.88 Bar Tab
$ 2.30 Bookie (it varies weekly, I took a 52 week average, plus "I'll Have Another"
was scratched at Belmont, skewed my average)
$ 3.10 Cowboy Hats
$ 1.80 Horse Feed
$ 1.80 Marker at Bellagio
$ 5.05 Citation III (includes two pilots on salary, plus fuel surcharge,
always get your fuel surcharge)
$49.00 Total - there you have it... Buy "The Book" today at 18wheelsofjustice.com
The point of this little exercise is that nobody will negotiate a higher rate because of personal financial problems or poor business decisions, no matter how likable a person may be...
Now, please don't take offense at these statements, but the reality is:
Nobody wants to hear about a son’s college tuition costs or how tough it is now in the trucking business.
Nobody cares if someone paid too much for a truck, and now they're stuck with a high payment, nobody cares about someone’s alimony, the new tires someone needs, etc. Nobody cares except, of course, you and me, and this is precisely why you should work to improve your negotiating skills. And, yes, I do care.
There is a fortune to be made in this business with some extra effort on improving your negotiating skills. It's no different that investing in a newer, more efficient tractor or researching fuel savings and better tires. This is an area where the majority of Owner operators, Small fleets & Carriers leave a lot of money on the table. If you think business is good now and demand for freight is up, imagine increasing your income by another 30-40%. It's right here for you.
What is the value of a book? What is the value of a carrier or an owner operator? A Broker and 3PL for that matter? The value of a customer?
The value of a customer is only what they themselves value. Do they value service or price? Or a reasonable consideration of both. Are they constantly shopping rates and only call you as a last resort?
The value of a Broker or 3PL is only what they themselves value. Do they value integrity & honesty? Will they book a load with you and then pull it when it "cancels" 30 minutes later because another carrier agreed to haul for $100 less? There are a lot of "pretenders" out there, but for every "pretender" there are 10 excellent Brokers & 3PL's who have high values, standards and integrity.
What is the value of an owner operator, small fleet or carrier to a Broker & 3PL? All of these values ring true and bring abundant rewards. Do you book a load with a Broker or 3PL and place it in your back pocket while searching for a better load? Or can they depend on you, place you on one of their best customer’s loads and always pay you a premium? How do you get to this elevated status with them? 18 Wheels of Justice shows you how.
The value of a Book? The value of education, self improvement, improving your business & bottom line? Continually educating yourself is the key to success in this business.
