Rate Negotiating

I got this question from one of my online students:

I need advice on rate negotiation. Should I go low when trying to establish a relationship with a new client?

Before quoting a rate do a little research on www.truckloadrate.com and www.carrierdepot.com. Also check out www.getloaded.com and www.internettruckstop.com

I don’t advise bidding low even for a new client. As soon as someone comes along with a lower rate, you’ll lose that client. Remember it takes 7-9 touches to get a customer.

Rates are based on how much capacity is available. LTL (less than truckload) rates are different than TL (truckload) rates because you will need to find a carrier with room on his truck for the shipment. You can't broker to Yellow or other LTL carriers. These are called common carriers. You need to work with truckload carriers. These are called contract carriers.

Give them a fair rate, learn a bit about their needs and stay in touch. The game is to be there when they are in a pinch.

Moving forward,

Jeff Roach