Showing posts with label strategy. Show all posts
Showing posts with label strategy. 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, December 3, 2012

Ask 18 Wheels of Justice Debut! "Soft Taco" asks...


Welcome to "Ask 18 Wheels of Justice".  All questions are welcome, anything and everything Trucking... Column will run every Monday and more often as some important questions can't wait and need to be answered immediately.  Thank you for submitting all of all of your questions and what great questions they all were.  It was difficult to pick only one...  

Let's Get Started!  You can sense the excitement here at 18 Wheels of Justice HQ, please make sure there's room on the edge of your seat and continue reading...

Names have been changed to protect the innocent and the guilty.

From "Soft Taco" Chino, CA...

"Soft Taco" asks - I have been driving for three years,  I have had 7 jobs.  I take my work seriously and want to own my own truck.  I quit these jobs because I get promised all of these things before I start and then they never happen.  I think it looks bad on my record and I'm afraid it will affect me buying a truck in the future.

Thank you for your question, "ST".  I wouldn't worry too much about your past, you can't change that.  You are right in that it can effect buying a truck in the future.  Changing jobs does "tell your story" so to speak.  This is important for all drivers to think about when deciding to switch jobs. It's not discussed very often, but it does reflect poorly on your credit if you switch jobs a lot.  Not just for buying a truck, but a home, car etc.  

We realize, "ST" that this is a common problem in our industry.  So stop changing jobs, Soft Taco! It's not that easy and takes work, but it does payoff.  Do not be discouraged, there is a process to finding a job.  I wrote an article about the 10 best ways to find a driving career and not just a job a few months ago(click here to read).  

The most important thing to remember is to take your time!  Sometimes we tend to wait too long to look for another job before we quit. Don't wait until you have finally had enough and quit when your angry or upset.  Be a gentlemen and give two weeks notice.  There is a lot to consider and please read the article(follow link above), because you lose a lot more money than you think when you switch jobs. 

If were to try and guess what switching jobs 7 times in 3 years cost you.  I would bet that you lost between 2 weeks and a month of work and pay each time you changed jobs.  Between trying to get your last paycheck, deductions, withholding, time lost waiting for MVR approval and drug testing, driver orientations, and on and on.  Hiring is not a quick process in our company.  

Let' be conservative and say you lost two weeks worth of income every time you changed.  If you average $1000 per week.

$2000 Lost Per Job Change
  x    7 Job Changes in 3 years

$14,000!  Yes, $14,000 Cash.  $14k would have been a nice down payment on a truck plus some cash for emergencies.  It also would have bought a car, a pick up truck, or a whole lotta' chrome...

The moral of the story is to take your time and do your research!  It pays off time and time again...

Don't forget to subscribe to our blog, all you have to do is enter your email address on the sidebar, takes a minute...  

One of my favorite trucks - check out How bad do you want it? W-900

Monday, November 26, 2012

Negotiating with Freight Brokers - Strategy #5

18 Wheels of Justice Home


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. 

Don't forget to sign up for the free email subscription!  It's free and your email address is kept confidential!


>
15 Ways to Increase your Income while Negotiating for LoadsPick up Negotiating with Freight Brokers and 3PL's today


Book or Book/CD




18 Wheels of Justice Copyright 2012

Friday, November 2, 2012

Part III - Drivers - How to Narrow your Job Search


18 Wheels of Justice Home

Welcome to Part III - Drivers - How to Narrow Your Job Search...

6.  Consult with your wife, husband or significant other.(for ease of reading we will refer to this person as your wife)  This is a step that is often overlooked.  You're wife will remember all the issues you complained about or liked at your last job.  Sometimes we only tend to remember the good things or bad things about a company we worked for.  Your Wife is a great sounding board because believe it or not she listens to you and wants to see you happy.  If your happy, she's happy.  It's not just about the money, it's easy to get wrapped up in the money aspect of a job.  Trust me, the a few pennies more per mile will lose its appeal when you are stuck out over the week-end, not getting the miles, or have a dispatcher that doesn't care or is too busy all the time.  FBC(Federal Blog Commission) Warning.  Too much interaction/conversation with your wife can lead to problems.  As you all know, a wife is, pound for pound, the most dangerous animal in the world.  Tread carefully here.  I learned this the hard way when I recently asked my significant other her opinion and ended up in a relationship counseling session.

5. Online Driver Discussion boards.  Check these out!  These can be a good source of real information.  I think every driver should belong to a few of them.  Like anything, there are good ones and bad ones, and some of the people who post on boards are just disgruntled and unhappy.  So use caution here also and don't believe everything you read.  I have gotten a lot of good information from these boards, and the better ones have members who have their profiles published also, so you can see who your talking to,  I find that for the most part, if someone is going to take the time to write and discuss companies etc. on these boards, they are generally sincere.

4.  Respect.  This is a common and rather generic term that is thrown around a lot these days.  Why?  I don't know.  I think respect is a given.  Perhaps what these trucking companies mean is that they are honest about things.  I think Honesty is the best quality a company can have when it communicates with its drivers.  Its just that simple.  This is a key aspect to look for in any potential employer.  When your following these steps, always keep this in mind.   

This seems like a lot of work, doesn't it?  Yes it does!  But, please remember the hours/days of orientation, setting up your truck, paperwork, drug tests and spending a few months at a company you don't like, when you make a knee-jerk decision to work somewhere. There is a lot of time and money you are investing in a new job, make it count.  A few hours of research now will save you tons of headaches later.  I originally tried to do this in 3 parts, but this is an important decision and there is a lot to cover.  Stay tuned, Part IV this weekend! 

What about a career change?  Have you thought about switching to pulling a reefer, van, flatbed, or tanker?  How about a being a car hauler or driving for an Oil Field Services company? Intermodal?  You ask, we deliver.  18 Wheels of Justice investigates and compares apples to apples and breaks it all down for you... Debuts next week!  "Drivers and Operators: Choices within your Driving Career - The Inside Scoop"...Next week will be the long awaited debut of “Ask 18 Wheels of Justice” on our website. We provide opinions, answers and solutions to all things trucking.  If we don't know, we will find the answer! A sincere thank you to all of you who submitted questions, please keep them coming.

© 2012 Michael H. Komadina

18 Wheels of Justice™

"Negotiating with Freight Brokers and 3PL's"  A "must have" in todays freight market, improve your company's profitability by training your staff with this hands on training manual today!


Book or Book/CD


Saturday, October 27, 2012

Driver's Top Ten - How to Narrow Down Your Job Search

18 Wheels of Justice Home


Top Ten List – The Search for a Driving Job - How to Narrow Job Search to 5 carriers


Here at 18 Wheels of Justice HQ, we have discussed how to decide from your list of 5 carriers you have selected, but how do you pick 5 carriers?

Drivers and owner operators are inundated with options for employment opportunities these days. Look on any driver or operator recruiting website, how a does someone decide on which company to call. Everyone seems to offer the same things, home time, respect, sign on bonus, new equipment etc. How did you get the real facts about the company?

We are going to show you what we feel is the best way to go about your search. This can feel like a huge task and can get overwhelming quickly. We like to break it down and do it in a simple 10 Step approach.

10. Word on the Street - talk to other drivers and operators. – This is a good way to start. Drivers and owner operators who speak well about their company is a tried and true way to find out the real story. I’m more cautious about suggesting this approach these days because most companies offer a referral bonus. I think the reality is that most drivers won’t push the company they work at if they don’t really believe it is a good place to work, referral bonus or not. There are always exceptions, but people aren’t that hard to read. If he or she seems like an honest and decent person, chances are they will tell you the truth. Be sure to ask them these questions: 

-Why they chose the company they are with.
-What were three of the deciding factors in their decision to work there?
-Home time, pay, the size of the company, equipment, reputation.
-Was it what the recruiter told them about the company?
-Did the recruiters’ promises hold true?
-Take notes! It easy to get the companies mixed up when you are making your decision later.
-Did talking to this guy make you want to call the company right away or were there things he said that made you hesitate?

9. Physical appearance of Equipment – As long as you’re talking to him, walk with him out to his truck.
 -Is it clean?
 -Well maintained? Tires tell a good story about a company.
 -Was is a matched set? New tires or recaps? Plenty of tread? You can draw your own conclusions.

Trailers tell a better story about a company. Some drivers are more concerned with their tractor than other drivers, but trailers in a drop and hook operation reflect the company better... 
-Is it clean? Is it beat up? How old is it? What about the tires? Again, draw your own conclusions…

8. Attitude and Appearance of the Driver – This says a lot about the company and type of driver that works there. I’m not suggesting judging other people, everybody is different. Generally speaking, a happy driver takes better care of himself and has a good attitude about things. Would you be happy to work with this driver and does he take pride in what he does and where he works?

We will post parts 7 through 4 of our countdown on Monday and the final 3 on Wednesday – Stay tuned!

Thank you for reading and be sure to check out our driver and owner operator page at 18Wheelsofjustice.com. We research carriers and present what they offer every week, to help you gain insight on what companies are offering and how they stack up. We do the research for you, you decide.


What about a career change?  Have you thought about switching to pulling a reefer, van, flatbed, or tanker?  How about a being a car hauler or driving for an Oil Field Services company?  You ask, we deliver.  18 Wheels of Justice investigates and compares apples to apples and breaks it all down for you... Debuts next week!  "Drivers: Choices within your Career - The Inside Scoop"...


Next week will be the long awaited debut of “Ask 18 Wheels of Justice” on our website. We provide opinion, answers and solutions to all things trucking.  If we don't know it, we find the answer! A sincere thank you to all of you who submitted questions, please keep them coming.

© 2012 Michael H. Komadina

18 Wheels of Justice™



BOOK & CD Package

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

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...



BOOK & CD Package

18 Wheels of Justice Home

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.

BOOK & CD Package

Monday, October 8, 2012

Drivers!


Owner Operator & Driver Retention and Recruiting.  It's the 8th Wonder of the World.  Where did they all go?  What happened to them?  I just talked to him yesterday... I thought he liked it here...   

It's like Mark Twain said about the weather, "Everybody likes to complain about it, but nobody does anything about it."

Believe it or not, there are a lot of trucking companies who excel at recruiting and retention. Who? Why? How? I'm glad you asked, please join me on a journey that will take us through some basics of successful recruiting and retention.

Let's begin with some careful self-examination.  Honesty is key here, know yourself and your organization.

Do you really want to solve this issue?  Or do you want to throw more and more money at broad advertising and hire more recruiters and hope it works out?  (That Beck song "I'm a Loser, Baby" comes to mind, "Things are gonna change, I can feel it...")

You didn't get to where you are today by hoping things work out. 

You are a Person of Action, a Leader, a Mover and Shaker, a Winner.  I'm serious...(How do I know? You are taking time out of your hectic day to read this, to learn how to improve your company.)

Turnover at the majority of trucking companies is sadly well over 100%, at some it reaches alarming heights of 200%-400%.  Don't get energized in the problem!  Let's focus on fixing the issue.  The hardest part of any job is getting started.

Think of your procedure when a new driver or operator joins your trucking company, I'll bet this sounds familiar...

The recruiter or safety department initiates the process.  Why it always seems to fall on safety is beyond me. I think everybody thinks they have nothing to do until an accident happens or auditor shows up.  I assure you this is not the case, especially in this current regulation environment.  Anyway, they go to great length and expense to advertise, spend hours on phone, email applications, run MVR's, meeting with potential drivers and operators, and finally one out of the five, perhaps one out of ten, they have been talking to shows up for orientation.

It is a moment of great triumph!  Everybody is happy, he gets introduced to his new dispatcher, perhaps an operations manager,  if he is lucky the owner comes out of his office to say hello and welcome him.  The owner operator or driver feels good about his decision to sign on with your company and everybody is smiling and shaking hands...

Then what happens?  Join me back here on Friday and we will explore how everything goes south, sometimes quickly, sometimes slowly... 

Please try this exercise before Friday, call each your dispatchers into your office and ask him to name from memory each of his drivers and owner ops, and keep track of how many they can name(15 out 25 etc.). 

Don't forget to sign up for email subscription so you don't miss it, it's free...

Tomorrow on the Bleater.  Conversations with Marge (TA Waitress extraordinaire, Driver and Owner Operator Ambassador) continues with a driver's personal story of struggle and triumph...


BOOK & CD Package


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.



BOOK & CD Package

Thursday, September 20, 2012

Cortes on Recruiting and Retention II

Return to 18 Wheels of Justice Home

Continued from Part I - Senor Cortes on Recruiting and Retention


Cortes may not have been the most qualified to lead the expedition. Though he was experienced and renowned for his courage, another reason for his appointment was his promise to help finance the expedition. Cortes emptied his personal wealth and poured it into the trip. He mortgaged his lands. He called on friends to both help prepare for the trip and to join his small army.

The first land Cortes and his crew of 508 men spotted was the coast of Yucatan, at one time the central nervous system of the Mayan empire. Cortes had ordered his scouts to the coast a month ahead of time to travel to the borders of the Aztec Empire to see what sort of trouble they might face when they approached to pillage the Aztec gold. They set up camp on the beach and prepared for the perilous journey ahead into the heart of the Aztec's and waited for the scouts to return to the coast with their report.

As Cortes' men waited for the scouts and prepared horses, guns and provisions for the nearly 200 mile inland journey, some curious local tribesmen had visited the encampment.  The subject of Montezuma, gold and armies were the main topic of discussion.  The locals told them of Montezuma's city of gold, the homes were decorated with and the streets were paved with gold.  They were amazed with the white, bearded man's peculiar interest in gold.  They also told them of Montezuma's fearless army, some 10,000-20,000 men strong by the locals count.
Within a few days the scouts returned, and they met with Cortes in the conquistadors large tent.  Some of the Cortes' men, eager to learn what they were facing, hid behind the tent and listened carefully to the discussion.  The scouting report was worse than any had imagined, Montezuma's army numbered well over 100,000 men, armed with spears, bows and arrows.  Although the expedition was well armed with guns and a large cannon, victory with 500 men vs. 100,000 well trained warriors, seemed an impossible feat.  Cortes took all of this in, swore his scouts to secrecy, and retired to his tent for the evening.

Cortes, meanwhile, weighed his options. He faced imprisonment or death for defying the governor, Velasquez,  if he returned to Cuba.  Cortes knew the want of gold and riches was not a big enough motivator for his men to face such a daunting task.  They were Soldiers of Fortune, not the soldiers one needed in such a battle.  All the gold in the world is worth nothing to a dead man.  The best soldiers are the soldiers who are fighting for God, Country and for the safety of their homes and family.

Cortes decided to take a walk on the outskirts of the encampment and try and get a feel on his men and their  morale.  The men who had been eavesdropping on the scouts and Cortes, had of course spread the word quickly about the 100,000 plus warriors.  Panic ensued within the men and everyone felt Cortes had surely lost his mind if he wanted to proceed, and there was no amount of gold worth marching into a certain slaughter.  They knew his situation at home in Cuba, but they were merely following Cortes' orders when they set sail from Cuba, and felt any of the consequences of joining Cortes would be dismissed.  The majority of them came to the conclusion, that life was good enough in Cuba, and it was time to return to their families and plantations.

Cortes knew his only option was to move forward with the expedition, he knew Velasquez's anger at his disobedience would be cooled off by returning with ship loads of gold, of which the Cuban Governor would get his fair share, of course. 

Hernando Cortes had heard all of this mutinous planning discussed at length by his men well into the late evening.  They had finally decided to seize all the ships at first light and sail back to Cuba, with or without Cortes.  Cortes, in a bold stroke of genius, sent his personal entourage of 50 loyal soldiers to the ships in the darkness.
He ordered his men to set all 11 ships on fire and send them out to sea.
They followed Cortes' orders, set the ships on fire, pushed them out to sea, and watched them burn and eventually sink, in a glorious sight in the darkness.

The next morning, Cortes and his army of 508 men marched toward Montezuma.


How does this relate to the trucking industry's seemingly never ending battle with recruiting and retention?  Join us here on Monday, September 24th to explore more on this fascinating subject.

Negotiating with Freight Brokers.  Gain much needed additional revenue by learning superior negotiating skills - Order Today!


BOOK & CD Package

18 Wheels of Justice Series available at: 18 Wheels of Justice


Saturday, September 15, 2012

Cortez on Recruiting and Retention


I imagine if he were alive today, Hernando Cortes would be a popular senator, a good spokesman and consumer for Captain Morgan, or perhaps, if he had the courage, he would be a successful Driver/Owner operator recruiter.  A recruiters job today is as daunting and challenging as any, and they must possess a unique set of abilities to lead, inspire and manage people.  Please join me as we go back a few centuries into an abridged version of the adventures of Senor Cortes in "New World" Mexico.

Cortes or Cortez, both acceptable versions of his name, found himself in Cuba circa 1517, after playing a role under Velasquez in the acquisition of Cuba for Spain. 

Cortes was a great leader of men.  He had an uncanny ability to recruit and inspire.  He found himself in Cuba, helping to set up the new government and closely guarding and organizing this exciting new asset for Spain.  Rumors had been spreading for decades in Cuba about the bountiful gold and treasures available to anyone who dared to venture into Mexico. 

Cortes, with a burning desire to make a name for himself, not to mention a blood lust for gold, starting putting together his own expedition into the golden hills of nearby Mexico.  He set out to put together a army of 500 men, and as any good recruiter will tell you, you start by defining and getting an understanding of your quarry. 

Cortes focused on the sons of wealthy sugar plantation owners.  They were plentiful in 15th Century Cuba and they had plenty of time on their hands.  He inspired them with tales of riches, gold and beautiful women from coast to golden coast.  These young men were easily regaled and intrigued with his tales and signed on easily.  Most were eager to make a name and a fortune for themselves, as most young men are...  Word spread quickly among these men, and soon Cortes had more than the 500 he needed and prepared for the expedition to conquer modern day Mexico... Learn the drastic retention steps he implemented.  Post continued Wednesday this week, don't forget to sign up for a free email subscription.

Negotiating with Freight Brokers.  Gain much needed additional revenue by learning superior negotiating skills - Order Today!


BOOK & CD Package

18 Wheels of Justice Series available at: http://www.18wheelsofjustice.com/


Tuesday, September 4, 2012

Trucking & Negotiating

Negotiating, in and of itself is an individual effort.  There is no textbook example to follow.  Each negotiator has his or her own style which was typically learned by trial and error through years of experience.  Experience gained while negotiating the price of a new car at a dealership, negotiating with a shipper, broker or 3PL for a load, or negotiating with a carrier to get them to haul your customers load at the lowest price.

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" in next weeks Bleater) 

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!

Please join me over the next three business days(Friday,Monday and Tuesday) on the Bleater where I will compare and contrast the good and bad strategies of negotiation used on a specific transaction.  Stay tuned...


18 Wheels of Justice Series available only at 18 Wheels of Justice Home

Tuesday, August 28, 2012

If You're Gonna be Dumb, You Gotta be Tough

Return to 18 Wheels of Justice Home

To help satisfy the ever increasing curiosity of my readers and growing fan base(yes fan base, I receive lots of emails from readers wanting to know more about me, so I consider these emails fan mail).  I often get asked questions encouraging me to share about myself.  To save time, instead of answering each email individually, I have broken them down into the three most popular questions I receive from fans and will post them here.

1. Who do you think you are?

2. I've been doing this for 20 years, if this worked, I would have heard it about it by now. What rock did you crawl out from under?

3. How are you even qualified to make such a statement?

Now, before I continue, I would like to tell everyone the title of my new book.  I would also like to preface this by saying that my new book outlines my new program to reduce driver turnover(increase retention-this explanation provided for my fans) in the over the road trucking industry.  As we all know, driver turnover has reached an alarming and critical level in our industry.  The title of my book is "90 Days to 75% Retention".

I do occasional consulting projects for trucking companies for a variety of reasons related to trucking and transportation.  In meetings to discuss my consulting services, I'm often asked about the title of my new book.  More often than not, it is met with laughter.  And not polite laughter, but real, hearty laughter.  When people glance at me after the laughter erupts, and realize I'm not laughing(I never laugh about retention), the polite ones usually stop, and present sympathetic looks akin to glances the dumb kid in class gets when he gives the wrong answer in a classroom.  ("He just doesn't understand, this is an unsolvable problem.  We must live in and accept our problem, we must tell him to accept the status quo, and be energized by our problem, not to keep seeking a solution.")

Has turnover become so accepted in our industry, that a 25% turnover rate is thought to be so unattainable that it prompts laughter?  It's that outrageous?  The ones who laugh the loudest are usually the ones who haven't done much self-examination recently and have the highest turnover, and have trouble grasping the concept that 25% turnover is achievable.  It takes me back to the days of my youth, when my one of my brothers(for the sake of family harmony, I won't identify which brother) and I were given a BB gun from my grandfather.  We charged outside, BB gun in hand, and held a heated debate about who was going to shoot it first.  It was finally concluded that I would be the first to shoot it and my brother in all his wisdom, would hold an empty aluminum soda can in his out stretched arm as the target.  So it was decided.  I walked off 10 paces in the backyard and turned around to see my brother holding the can in his hand, I aimed and shot quickly.  I missed the can completely and the BB struck my brother in the chest.  He looked down at his chest, looked back up at me and proclaimed in a taunting voice, "You missed, moron!"...   My grandfather, heard the commotion, came outside took the BB gun back as we explained what happened.  He turned to my brother and said, "Well, If your gonna dumb, son, then you gotta be tough". 

The retention problem is large and It's not going away.

Our retention issue is a cancer that has been growing since the early 1990's.  Twenty years of a growing tumor on our industry, never in remission, but only a few short periods of slowed growth with a slowing economy, followed by rapid growth in turnover fueled by an expanding economy.

All of this is yesterday's news, as they say and I don't expect anyone to be surprised at any of these comments.

Have trucking companies just given up and accepted their turnover rate as the status quo?  

I don't believe so.  Trucking Executives are some of the best executives in our country, never to be ones to give up, quit, or not to find a better way. 

This retention issue is one that has never been faced before in history.  There has been no training available, not a clear successful plan to follow.  It is massive and growing.  Whenever there is no history of success to follow, innovation must prevail!

Innovation and new approaches are always laughed at, criticized and scorned at the beginning.  But, it must be said to the detractors, that in the history of the world, there has never been a statue in a town square built in honor of a critic!

There is not an industry in the history of the United States, dare I say the world, that has experienced this!  I defy anyone, a college professor, a Harvard MBA, anyone to find an industry who has experienced such a shortage of employees during a poor economy that keeps getting worse.

Trucking companies are willing to pay just about anything to get a driver in a seat.  Find any industry in the United States!  Any industry in the world!  Not just this century, any century!  Why?  because the trucking industry is unique and so is our problem.

1. Trucks have wheels - carriers aren't defined and limited by a physical location, and neither are drivers.  This creates a large pool of potential drivers and a large pool of potential employers, ready to transact at a moments notice.  This is why broad economic theory is effective in this situation.

2. The CDL is unique in the amount of time it takes to be licensed and the amount of experience needed before a solo driver is deemed safe.

We must employ not one concept, not two concepts, not one economic theory or practice, but many applied together in a unique manner aimed at the trucking Industry.  We must call on the genius of Henry Ford and Keynes!  We must apply a personal approach unique to an employee who is always working but never at a physical workplace!  We go home and he is still in his truck, driving, sleeping, loading, unloading.  When he does arrive at the terminal, it's usually off hours and we are at home.  If we are there, he is in a hurry to go home to his family anyway, and doesn't want to enjoy a hot dog with us at the driver appreciation BBQ.  

So what exactly am I suggesting here?  That you read and study the economic policy of Keynes?  That you study Henry Ford's trial and error approach to retention?  That you spend the next twenty years trying different things to keep drivers from leaving your company until you figure out the best path to successful retention for your company?  I have done all of this already for you in a simple, fast moving process that will walk with you to successful retention in 90 Days.



Choose Package



Please join our Discussion Groups on LinkedIN.  Both "Negotiating with Freight Brokers" and "90 Days to 75% Retention".





18 Wheels of Justice Series available at: http://www.18wheelsofjustice.com/















   





Friday, August 17, 2012

90 Days to 75% Retention - Week 1 - Identify Your Drivers!!

Week 1 - Day 1


Admit you have a retention problem.  Admit and accept that you have a retention problem.  Admit and accept that what you are doing is not working and agree to start over with new concepts and ideas.  If you can't admit and accept this, close the book, send it back to me and I will refund your money.  Update your resume, sell your company, whatever, good luck to you.  Now, for the rest of you still here,  some ideas you will agree with and some ideas you won't,  Try and embrace and give 100% to this process during the 90 days, it will begin to make sense along the journey.

Identify Driver Types.  All Drivers must be placed in these four categories.  No other categories are allowed.  Do not try and invent new categories.  There are two opinions needed for each driver.  His dispatcher and the recruiter(or person who hired him).  The dispatcher and recruiter need to decide this separately and then meet to discuss together and agree.  Lock them in a room for an hour or two or longer per driver until they agree.  If you hear loud voices and arguing, that's ok, that's part of the process.  If you hear gunfire, then send someone(other than a driver)in the room to break it up.  Trust me they won't agree on 30% of the drivers.  This is where part of the retention problem hides within your company.
We must remain vigilant and militant throughout this process and adhere to it as described in this book.  Convince the detractors and critics within your company to give 100% to this process.  Remember that in the history of mankind, there has never been a statue nor monument built in honor of a critic.

Drivers must be placed in the following four categories -

"The Fleeter"
"Driver Pro Tem"
"The Yearling"
"The Advocate"

How to classify your existing drivers and new drivers into these four categories are crucial to your success.  These categories are based on the following:

Length of Employment at your company
Average Length of Employment in last 10 years
Personality Profile Score
Income Profile Score
Work/Home Ratio Score
Pay History Score

(Personality Profile, Income Profile, Work/Home Ratio, Pay History Score are simple question and answer tests that can be given in person or over the phone, takes 15 minutes, tests are in appendix F)

The basic description of "The Fleeter" and an overview on how these scores are applied will be in next weeks post.


Choose Package

Friday, August 10, 2012

Need to reach Owner Operators? Drivers?

Advertise in "Negotiating with Brokers"



Negotiating with Freight Brokers - Special Edition Book & CD Package.

First 1,000 Copies given away directly to Owner Operators and Drivers personally by Author in September to promote the book and soon to be released ebook.


Ads will continue to be printed in all copies sold September 15th to November 1st.   


Unique opportunity to reach your target audience, advertising pages will be on opposing pages only next to our most popular content. Ads will be placed on the Negotiating Strategies pages only. Advertisers will be limited by category. Ideal for all trucking and transportation industry advertisers.  Anyone who wants a captive audience of owner operators and drivers, you will have their attention.


This is a professionally printed, attractive high gloss cover paperback book, included in a 9.5"x7" Padfolio with note pad and pen.  This item will be used over and over for years and includes CD. 

Same old advertising and approach not working?  This will bring results!


Distribution Date September 15th, 2012.


Please see our Media and Advertising page for more exciting details - Advertising - Media


COPYRIGHT 2012 © Michael Komadina


18 Wheels of Justice "The Book"©


negotiator@18WheelsofJustice.com



Tuesday, August 7, 2012

The Joy of Negotiating - Part 3 of 3...

Welcome

 Stage Three of the Process, the Art.
(For Stage Two, please see Saturday's Post)


1. Pre-Negotiation.  "Framing and Setting the Stage"

2. Deadlock, Stalemate and Arrested Development

         We are going to stay on Stage Two for a little bit and and discuss some more negotiation strategy before we conclude with Stage Three.  Honesty is key in negotiation, your word while you're negotiating is like your credit.  You are agreeing to do this load, never book a load without every intention of doing it, never give a load back to any broker unless there is no other reasonable option.  If you have to give it back, do it as quickly as you can, giving the broker as much chance as possible to cover with another carrier.  These are words to live by, this is someone you want to do business with again. 

There are 15 strategies in "Negotiating with Freight Brokers & 3PL's"  They are most effective if you follow the "rules of engagement" so to speak, which basically means treating a broker like you would your best customer.  So when we talk about introducing a third party into the negotiation,  I mean actually consult with a third party.  Feel free to introduce this third party at any time during the load booking process.  I find it most effective to introduce midway throughout the negotiation.  It's your call, in the beginning or middle, but I advise against doing it near the end.  If introduced early it can ease the tension with booking the load.  Use statements like, "my boss probably won't let me do it for that, but I will ask him" or "we pay these operators percentage and I don't think he will do it for that".  You want to create a camaraderie here between you and the broker.  You are working together to get this transaction done and convince this third party.  You are building a relationship.  Introducing the third party late in the negotiation can be seen as a cheap ploy.



Stage  - 3.  Acceptance and Settlement.  A Transaction is Born!


Once you read my book and employed these strategies, you will see your rates climb and climb.  It is very important to get your load confirmation while you are on the phone with the broker.  I always have them email the rate confirmation while we are on the phone.  We hold ourselves to high standards of honesty and we expect the same from the broker we are dealing with.  Most brokers in this industry are honest and have high standards, but there are pretenders.  Especially when faced with the fact that he or she is paying you more for this load than they have ever paid before.  This rate you have achieved by superior negotiating may be followed by a phone call from the brokers boss, trying to explain that the person made a mistake etc.  Do not waiver, the broker was authorized to negotiate this load with you, and that is that.  You have the rate confirmation, end of story.  Sometimes as soon as you hang up with the broker another carrier(who hasn't bought my book) will call and haul it for $100, $200 less than the rate you just negotiated for, and the temptation to rob you of your hard fought gain is too great.  Feel free to scoff at this comment, but those who employ these strategies know.  It has happened to me thousands of times.  You must back up this rate with the service or it is only a one time rate.  Give the broker his or her moneys worth.  Call him when your truck arrives at the shipper.  Call/email him when he is loaded, don't wait for the broker to call you.  Email him the next morning when the truck arrives to unload and again when he is empty.  This leaves a lasting impression and will build a solid relationship.  Don't ever gloat, you are getting paid a premium rate for you premium service.  You are getting paid for the service you offered and you walked the broker through the reasons while you were booking the load.


Why is negotiating and haggling such an unpopular concept and dreaded process in this great nation of ours? The term "haggling" alone brings to mind nefarious individuals in the back room of a used car lot. Why does it only exist in certain industries? It has almost disappeared altogether in the retail industry, is rapidly losing popularity on new and used car lots, one of the last bastions and havens of the skilled negotiator. "Boy, I say Boy", it is alive and well in our industry! Our profits are defined by it more and more everyday. How do you train your planners, dispatchers, brokers?


 Popular reading for both Brokers and Trucking Companies -

Negotiating with Freight Brokers

DVD,BOOK,CD or Package

Please join our Discussion Groups on LinkedIN.  Both "Negotiating with Freight Brokers" and "90 Days to 75% Retention".







18 Wheels of Justice Series available at: http://www.18wheelsofjustice.com/


Sunday, August 5, 2012

The Joy of Negotiating - Stage 2

Welcome

 Stage two of the Process, the Art.
(For Stage one, please see Friday's Post)


 The best negotiators tend to be the best listeners.  The person with the most to say usually has the least to offer, and typically attempts to hide this fact with banter and a hollow pitch.   
  The most important thing to remember is that all negotiations follow these stages in this order.

1. Pre-Negotiation.  "Framing and Setting the Stage"

2. Deadlock, Stalemate and Arrested Development

Now, it is fine to overlap these stages, to take a step back and fine tune the framing you did earlier.  There is much, much, more framing that can be done depending on each particular situation,  however, I would just like to give a general outline here.  The fun in negotiating is that everyone eventually develops their own style and approach that tends to mirror the individuals personalities.

One easy way to remember the stages is "FAT".  Framing. Arrested Development. Transaction.  This is a very interesting stage because it is necessary, a negotiation doesn't exist without it.  We must pause and realize this is happening.  Dead silence, a moan, a sigh... the longer the better!  Don't lose your nerve here, patience, patience,patience...Now,  I prefer the term  "Arrested Development" over stalemate and deadlock.  Stalemate and Deadlock sound unpleasant.  It sounds like an argument, a fight, a disagreement that has no solution.  Arrested Development to me, is more of a long, slow, speed bump to be smoothed over.  This is an issue that can and should be resolved like gentlemen!  Let's pull together, stay friends and find a solution together.  We've come this far.  Well, seems like we have an problem here, I wonder what, if anything we can do? 
Let me talk to... I need to discuss this with...  A Third Party...  This is one of many negotiating strategies to use during this stage, and popular for good reason. 

Now, if you have been following our LinkedIN group, I talked a little about my old boss, Ben.  I started to become fascinated with negotiating while watching Ben in action in my teenage years working part time for a small brokerage and trucking company.  He gave me this advice which has stuck with me and is still sound advice.  He said, "Boy"(with a foghorn leghornish flavor) "I say, Boy, there are three things you never, ever do alone, if you want to survive in this business.  You never drink alone, never talk to a banker alone, and never ever go BARG-nin(negotiating) alone."  I never bothered to ask him about the first two, but the last one about "BARG-nin" is gold.  Now this uncomfortable silence, this arrested development, seems impolite in most every social situation.  Not to a negotiator, this is where its your time to shine.  For brokers 100% of your profit lies in your negotiating skills, for most carriers it's 30%-50%.
During the Arrested Development stage, friendship is forged between you and the broker, if you have framed properly, politely and honestly, you are solving this situation with his load.  And this "situation", not having a reputable carrier on his customers load, is detoriating rapidly hour by hour.         

Why is negotiating and haggling such an unpopular concept and dreaded process in this great nation of ours?  The term "haggling" alone brings to mind nefarious individuals in the back room of a used car lot.  Why does it only exist in certain industries?  It has almost disappeared altogether in the retail industry, is rapidly losing popularity on new and used car lots, the last bastion and haven of the skilled negotiator.  "Boy, I say Boy", it is alive and well in our industry! Our profits are defined by it more and more everyday.  How do you train your planners, dispatchers, brokers?

Don't miss Sunday's Post - A true story on when, how and why negotiating, haggling and "barg-nin" started disappearing from our culture, along with...
Stage  - 3.  Acceptance and Settlement.  A Transaction is Born!

Thank you.  Please sign up for email subscription, it's free, and our blog is also posted directly on our website now at 
18 Wheels of Justice     




 Popular reading for both Brokers and Trucking Companies -

Negotiating with Freight Brokers

DVD,BOOK,CD or Package

Please join our Discussion Groups on LinkedIN.  Both "Negotiating with Freight Brokers" and "90 Days to 75% Retention".






18 Wheels of Justice Series available at: http://www.18wheelsofjustice.com/


Friday, August 3, 2012

The Joy of Negotiating

Good Morning and Welcome.

Joy can be found in every endeavor with an understanding of the process.  I think if there was a way to divide our country into two types of people, the most effective and decisive way would be to divide them into the two categories.  Those who enjoy to negotiate and those who don't.  I don't think there is anyone on the fence.  People either like it or they don't.  I think the best sales people tend to be "people pleaser's" and are easily offended and uneasy when a relationship they have developed with a customer or broker turns to a negotiation over a specific load, lane or contract.  They tend to view it as something they may have done wrong in the relationship.  It becomes uneasy very quickly.  Do your best make the other person comfortable with the negotiating process. 


 The best negotiators and sales people tend to be the best communicators.  They know what they want the end result of the conversation to be and they know how to get there in an easy manner.  The conversation begins and ends with a purpose.  The higher rate is not slipped in near the end of the conversation, it is addressed and debated during the entire conversation in a polite and consistent manner.  In the spot market, the last thing you want is an auction or bidding type of process where numbers are simply thrown back and forth, it's ineffective and makes you seem greedy and doesn't promote a relationship. 

This is true from a carrier, broker or customer standpoint.  If you have a customer who is constantly beating you down on your prices, you eventually lose interest, knowing another a cheaper carrier will ultimately get the business.  Let them have it, eventually they will learn the true cost.  The most important thing to remember is the design of every negotiation.  All of them follow this pattern:

1. Pre-Negotiation.  "Framing and Setting the Stage"

Know what rate you want before you discuss the load, this stage is not about the rate,  you want to ask many questions and listen for items about this particular load that will merit a higher rate.  This is "Framing".  You are bringing up the value of your truck for this particular for this particular transaction at this moment in time.  Does the load have to pick up by noon, and your truck is empty, 50 miles away at 8am.?  What are his chances of finding someone else more suitable? and so on.  Have your list in front of you.  This will all become very fluid and fast with a little practice.  If he asks what rate you need, don't answer,  if he offers a rate, don't acknowledge it!  You don't have all of the information you need yet.  Each load you haul is sacred, you only have ONE load you can put on your $100,000+ asset(and don't forget the $200,000 you have spent to find and keep a driver for this asset).  Most of all, take your time.

Saturday's Blog - 2. Deadlock, Stalemate and Arrested Development

Sunday's Blog - 3.  Acceptance and Settlement.  A Transaction is Born!

Thank you.  Please sign up for email subscription, it's free, and our blog is also posted directly on our website now at 
18 Wheels of Justice     




 Popular reading for both Brokers and Trucking Companies -

Negotiating with Freight Brokers - Purchase below!

DVD,BOOK,CD or Package

Please join our Discussion Groups on LinkedIN.  Both "Negotiating with Freight Brokers" and "90 Days to 75% Retention".






18 Wheels of Justice Series available at: http://www.18wheelsofjustice.com/