18 Wheels of Justice - Real Solutions for the Transportation Industry: freight brokers

Showing posts with label freight brokers. Show all posts

Wednesday, December 5, 2012

The Great Sign on Bonus Hoax

The Great Sign On Bonus Hoax

One thousand, two thousand, three thousand, 4... Don't wait, just step right up to the golden door!

The good old sign on bonus... A re-engineering, re-invention, a re-wording of the classic bait and switch, ye ole switcheroo, applied to recruiting drivers. For Shame!

Hear Ye, Hear Ye, Here ye go, just sign right here and go with the flow...We have a $4000 sign on bonus, Bubba's Trucking next door will only give you Three, that's right, uh huh, you're at the right place... Join our company, we'll give you a bonus over the next 6 months, a year, you'll earn less while you work here, but don't worry 'bout that, you got a bonus! Just step on up and through the golden door.

It's nothing new. When did this madness start in our industry? In the early 1990's, I'm not sure by whom or what company, but that's when it became prevalent. And now, everybody has to do it.

Nearly every trucking company in the country offers a sign on bonus. Why? Because they have to. How much weight should you give it in your decision process? Very little. Don't fall for the hype.

The drivers and operators who watch what companies offer and do their research know this and

drivers and operators who have fallen for it once, know even better.

The lure of easy money, the temptation of a fast buck loses its appeal with the reality of: "Now, I have to actually work here?" and "My paychecks sure seem small".

How many carriers have clauses that will deduct the bonus you were paid if you don't stay the required minimum of 6 months? Or a year? I believe you would be surprised at some of these contracts, or maybe not.

Why do we have turnover? Is it the drivers fault? The company's fault? A case of not seeing the forest for the trees? If you want turnover, this is a great way to increase it.

I personally admire companies and people who try new and creative approaches to solve problems. Applying traditional product selling ideas to recruiting drivers. It was innovative and effective at grabbing attention and drivers when it first appeared years ago, but now it's just fun with numbers.

A $5000 bonus paid over a year is nothing compared with 500 less miles run every week on average. The miles you will get is always the mystery of starting any driving position.

Ask the trucking company about average miles per week! Read the fine print and do your homework and the math. Get your wife, husband, father, mother whomever to go over the details. A second opinion from someone who cares about you and your well-being has never hurt anyone.

Monday, November 26, 2012

Negotiating with Freight Brokers - Strategy #5

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Strategy #5 - Hello Third Party!

So... Your negotiation is going fairly well: it has been friendly and easy going. You have assured the broker you can do this particular load successfully, you can meet all of his needs, you're trustworthy and in the end it will be good for him and his customer. He needs reassurance at this point in the negotiation. He needs to know that you want to do this load, and you do, but you have to make sure the rate is ok with one of the following people:

Your Boss
Your Partner
Your Wife
Owner Operator who will be hauling the load
Your Father
Your Mother
Your Spiritual Advisor - Priest, Rabbi or Minister. Yes, The decision to take a load of freight is this important!

Someone other than yourself with whom you need their approval to the load. Or someone with whom you place high value on their opinion and you always run major decisions(taking a load) by them. If you don't have someone like this, you should find someone.

Feel free to introduce this third party at anytime during the load booking process. I find it most effective to introduce them midway through the negotiation. It's your call, in the beginning or the middle, but never towards the end. If the third party is introduced early, it can ease the tension with the negotiation. As the conversation goes along, you should be making statements like, "well...he isn't going to like that, it will be hard to convince him to hand unload all those pebbles, well it doesn't unload until 2pm, that's going to make it hard to pick up another load that same day..." and so on and so forth.

This also creates a camaraderie between you and the broker and can be a good thing. Always remember that you are trying to build a long term relationship. This is a good thing because you and the broker are working as a team to convince this third party(your boss, wife, owner op, mother, father, rabbi, etc.) I would strongly advise against introducing this third party late in the negotiating. This can be seen as a cheap ploy and ruin all the goodwill you have created.

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Monday, November 12, 2012

Happy Veteran's Day

Happy Veterans Day!

18 Wheels of Justice would like to express our sincere gratitude to all who have served and are currently serving our beloved country protecting our citizen’s rights and freedom! God Bless America and the Armed Forces! For all our veterans returning from service, and returning to a slow economy, the trucking industry is hiring and training drivers. Becoming an OTR Driver is full of opportunities, good pay and security. There are many opportunities to buy your own truck and become an owner opportunity after a few years. The future is bright for you in our Industry!

I was blessed with spending opening week-end deer season with my Dad, two of my brothers and my 10 Year old son, Joe, at our family farm in Northern Missouri. After a very enjoyable week-end, my son and I embarked on our two-hour journey home on a rural two lane highway. With a ten year old boy, many rapid fire conversation start and stop abruptly, change course and reignite later at random times. One of many conversations involved the lines on the two lane highway. What do the dotted lines mean? Can I change the radio station? Why is there a dotted line next to a solid line? Look at that cow… Why are there two solid lines? Dad? Why didn’t they make this highway wider?

They made the lanes wide enough for a truck to safely haul freight.

Joe: Why is a truck that wide?

Because the machines they used to make railroad cars are the same machines they used to make trucks and trailers with.

Joe: Why are railroad cars that wide?

The axles and tools that were used to make wagon axles were used to make railroad car axles.

Joe: Why were the wagons that wide?

Because of the Romans

Joe: What does this have to do with Bible?

Nothing, the Roman Empire built Chariots and all of the major roads throughout Rome and much of Europe, and wagon axles were built the same width as the chariots. That way the wagon wheels would fit in the ruts that already existed in the road. The wagons would ride level and the wagon wheels wouldn’t break in a rut.

Joe: Do you mean the rut during deer season?

Not that rut, a rut in the road.

Joe: Ok, then why did the Romans build the Chariots that wide?

Roman Emperor Julius Caesar declared that all official Roman Chariots be built to the width of two horses. There has to be a standard width or nobody would be able to fit on the roads, it would be chaos.

Joe: Hmm. Look at that cow over there…

Friday, October 26, 2012

Treat Brokers as Customers!

18 Wheels of Justice Home

The business of shipping products to customers is ever-evolving into a world in which 3PL’s and Freight Brokers have access to more and more of the truckload market. Large manufacturer’s want to focus more on their core business, than having entire shipping departments dedicated to rates and setting up carriers, dealing with scheduling appointments and so on.

So, what does this mean to you? A brave soul, the lone owner operator who sets out to seek his fortune with his own truck and trailer? A small carrier with a dozen or so trucks, trying to build a dynasty or family fortune?

Buy Book and CD today at

www.18WheelsofJustice.com

A truckload carrier whose business is 30% to 40% Broker and 3PL freight and has planners/dispatchers who are not yet masters in the art of negotiation? Do they hesitate to be aggressive negotiators?

30% to 40% is a very large portion of your business and where a large portion of potential profit is hiding. Yes, and it is an art, when done creatively, properly and successfully, negotiating can be one of the most beautiful and rewarding experiences one can have.

Think back to the days of your youth, negotiating with parents to stay up later, only to be told to go to bed. Or did you return to the negotiating table with your parents armed with opposing arguments? How about delicately trying to negotiate your first kiss with a blushing, young redhead and getting a hug or handshake? Or did you steal a kiss and walk away, leaving her wanting more?

Like most of us, you probably have good and bad memories of negotiating. The important thing to remember is that you walked away from each one with more knowledge, experience and skill every time.

The transportation business has changed over the last ten years. What does it mean to you?

No longer are Brokers and 3PL's just a backhaul provider, they are our best customers. The carriers who treat them as such, win everytime...

18 Wheels of Justice Home

EMAIL - Negotiator@18wheelsofjustice.com

Wednesday, October 10, 2012

Spot Market Negotiating Strategy #12... High Fuel Cost Is Your Friend

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.

Tuesday, October 2, 2012

Brokers and 3PL's as Customers

BROKERS AND 3PL’s AS CUSTOMERS

The business of shipping products to customers is ever evolving into a world in which 3PL’s and Freight Brokers are able to control more and more of the truckload market. Large manufacturer’s want to focus more on their core business, than having entire shipping departments dedicated to rates and setting up carriers, dealing with scheduling appointments and so on.

So, what does this mean to you? A brave soul, the lone owner operator who sets out to seek his fortune with his own truck and trailer? A small carrier with a dozen or so trucks, trying to build a dynasty or family fortune?

A medium to large carrier whose business is 30% to 40% broker & 3PL freight and have a planner or dispatcher unprepared in the art of negotiation? Yes, and it is an art, when done creatively, properly and successfully, negotiating can be one of the most beautiful and rewarding experiences one can have.

Think back to the days of your youth, negotiating with parents to stay up later, only to be told to go to bed. Or did you return to the negotiating table with your parents armed with opposing arguments? How about delicately trying to negotiate your first kiss with a blossoming young redhead and getting a hug or handshake? Or did you steal a kiss and walk away, leaving her wanting more?

Like most of us, you probably have memories of good and bad negotiations. The important thing to remember is that you walked away from each negotiation with more knowledge, experience and skill.

The transportation business has changed over the last ten years. What does it mean to you?

OPPORTUNITY

MORE PROFIT

AND MORE PROFIT

CONTROL OF YOUR BUSINESS

CONTROL OF YOUR DESTINY

There are tens of thousands of creditworthy brokers and 3PL’s today. The opportunities are endless and better than ever from the carrier and owner operator perspective.

Why? Because you don’t have to spend six months to a year making sales calls on the local furniture manufacturer or beer distributor to get your first truckload of profitable freight. Typically, you can’t service, or for that matter, don’t want all of their freight anyway.

Some of our best and often overlooked customers are the 3PL’s and freight brokers. No longer are they just a backhaul provider or someone who we love to hate, they can be our best customers!

Tuesday, September 25, 2012

Know When to Hold 'Em - Strategy #6 from Negotiating with Freight Brokers

18 Wheels of Justice Home

"Know When to Hold 'Em" - Strategy #6 From Negotiating with Freight Brokers and 3PL's

So, here you sit, at your desk talking with a broker about a load. Meanwhile, you still have lots of trucks to cover, phones ringing, one driver late and going to miss an important customer pick up, another driver MIA, customer keeps calling about load, lots of pressure, trying to increase revenue per mile and margins, and keep drivers... Lots to do. Sweat is starten to moisten your forehead, your beautiful, blonde secretary notices and stops what she is doing to wipe your brow. Well, Ladies and Gentlemen, there is an invention that helps in negotiating while increasing productivity at the same time. The most effective tool in your negotiating arsenal - "The Hold Button".

Keep the broker on "ice"... Put them on hold while you are deciding what to do. Patience is a virtue and revenue increaser. Patience, Patience, Patience. Are you already at a higher rate than expected? How much more money will turn this from a good load into a great load? Another $200,$300 or more? All the additional revenue you can get now is sweet, sweet, profit. Have your reasons prepared before you come back and tell them another $200 and let's wrap it up. The longer they remain on hold the better. Don't let them stay on hold for longer than a few minutes without picking up the phone and letting them know you're interested in this load and trying to get it worked out while you have them on hold, and thank them for their patience. The longer they are on hold, the more time and effort they have invested in selling this load to you, the more they want to wrap it up and move onto the next load. An extra ten minutes of "hold" time with each load will generate a lot of extra $$ every time.

Thursday, June 14, 2012

Prevailing Notion - Broker's & 3PL's