Insider Secrets to Successful Freight Brokering

Freight Broker Benchmarks

Years ago, I spent a lot of time analyzing stocks. At one time, I had over 40 specific items that I looked at to try and identify a stock that was on its way up. Out of the 40 or so items, I narrowed my focus to probably about fifteen.

These important items were benchmarks against which I analyzed the stock in its historic framework and I also compared a company's benchmarks with other companies in the same industry. The time and effort paid off.

Nearly every successful business owner has his or her focal points or benchmarks that are used to determine how they are progressing. The gross profit margin is one of the four benchmarks that, in my opinion, is important.

The gross profit margin is a percentage of what profit you have after you pay the truck divided by what the shipper is paying. Thus, if the shipper is paying you $1,500 for a load and if you have a $225 profit after paying the truck, your profit margin is 15% ($225/$1,500).

We go into detail on these and other benchmarks in our training. Further, we have benchmarks to evaluate truckers as well.

If you don't have benchmarks to monitor your progress, you are just winging it. To learn more about the various training programs, click here to see some of the topics that are covered: http://www.atexfreightbrokertraining.com/programtopics0905.shtml

Lin Me Your Ear for a Second

I don't normally follow professional basketball (but I am an avid NCAA fan). Nevertheless, can anyone ignore what is going on with the Jeremy Lin thing and the New York Knicks?

This guy is a modern day sensation in the extreme.

Here is my take on it - Jeremy is probably a foot and a half (or more) shorter than his co-players. Other than that, the most striking impression is his shear, undaunted boldness in his performance.

He knows how to execute! He is definitely "in a zone". But he has been in a zone for seven games and there seems to be no end in sight. Many players get into their zone for a few minutes or maybe during a particular game.

But Jeremy goes on and on.

I sometimes like to compare business with war and sports.

All of these need to be conducted with decisiveness, agressive action and, above all, perfected execution.

If you haven't experienced these, get into a business and find out what it's all about. Go here to learn more: www.atexfreightbrokertraining.com

Are You Easily Influenced?

You will hear some negative comments from time to time while working with shippers and carriers. If you are like me, you might be influenced at times.

For example, when I hear someone make a negative comment about a restaurant, I tend to avoid that particular restaurant. Is this wise? Not really.

Another example, when I was brokering, I'd get negative comments about "rip-off" brokers or bad destinations with no back hauls. And so on and so on.

What do you do and how do you overcome this?

You don't just ignore these. And you don't blindly believe these.

In my training, we go into more detail on these issue moreso that what can be revealed in this blog post.

But, just ask yourself - are you easily influenced? Or, do you respone in better ways?

Which Freight Broker Skills Do You Possess?

Freight brokering does NOT require a lot of formal education. However, a broker does need to develop and hone several skills.

Order my free eBook, "7 Skills of Highly Effective Freight Brokers" by going here: http://www.atexfreightbrokerhomestudy.com

Just enter your name and email address. Immediate download available.

Freight Brokers and Truckers

There are several important points that need to be made concerning freight brokers and truckers.

First, many truckers think that just because they are in trucking, they can easily become a freight broker. While this may be true for some, it is not industry-wide. Trucking and freight brokering are related in some ways; but in others, trucking and freight brokering are completely different.

Every so often a trucker will call me and say, "John, I have been in trucking for 15 years and deal with freight brokers. But I really don't know what they do or how they go about their business".

The smart truckers who want to supplement their trucking business by becoming a freight broker realize that they will have to learn some new stuff.

Second, as a freight broker, getting customers is one thing; finding trucks is another. Truck capacity is low. It is sometimes hard to find a truck when you want them and where you want them.

Smart freight brokers will put as much time and effort in locating available trucks as they do in finding customers. The best way to attract trucks, of course, is to offer loads that pay well. Many, if not most, truckers will go anywhere if they are getting good rates.

So, find good paying loads, yes. But strike out in other ways to get set up with as many truckers as you can.

Check out the follow article to learn how freight brokers work proactively. Go to: http://atexfrei.ipower.com/proactive.shtml

 

Who Asks The Questions?

Generally when you approach a potential customer for work, you would expect them to ask a lot of questions. Afterall, why would they want to do business with you if they don't know you.

For example, when you go shopping for a big item, you may have many questions to ask the seller or vendor. You want to make sure you are getting what you want.

But is it the same in freight brokering?

Actually, No. You, as a freight broker will be asking the shipper a lot of questions. Here is what is important about this. If you do not ask good questions, you will come across as being a wanna be at best or a dunce at worse. Shippers will have you fingered in just a few seconds if you start out wrong.

Asking intelligent questions of your shipper will mark you as a professional. We go into considerable detail on these questions in our training.

Do You Use Kaizen?

There is a Japanese concept called "Kaizen" whcih simply means working or living in a way where you are making constant improvement. Of course, in order to make any improvement at all, you need to know where you are at the moment. You need some sort of "baseline" from which you can measure your improvement. So you can start writing down where you are.

I like this Kaizen concept better than the "goal setting" that you hear so much about. For years I have heard about setting goals within different areas of a balanced life. Maybe there is no difference between Kaizen versus setting goals. But I am more motivated when I think of Kaizen.

Of course, you could always wait til you are in the twilight of life and then start making your "bucket list" like Jack Nicholson and Morgan Freeman did in the movie with the same name.

But my personal Kaizen method consists of making a spreadsheet with maybe 30-40 different things that I want to do or improve upon. To the left I give each item a number from 1 to 10 with 1 having the greatest priority and 10 having the least.

To the right I have four cells. One is labled "Not Started", the next is "Started", the next is "Almost Complete" the last is "Completed". And I fill in colors for each item I want to work on, depending how I am proceeding.

At any point in time, I can add and delete items. I can then select and sort the entire list based upon the priority.

This works for me. It is a visual illustration showing me what I want to improve or do and how far along I have gotten. Sometimes I don't start and complete an item for months and months. It is usually a low priority item. Other times, I quickly add and remove items that are of high priority and that are completed.

Whatever works, works. Good luck.

 

You Have Probably Heard It Before .....

When it comes to performing and performance, you no doubt have heard some say, "Execute! Execute. Don't try to hit a home run. Just concentrate on execution!"

Then others say, "Establish your goals. Think about results! Go for it!" So which is it? Who is right?

Well, maybe both are.

I tend to focus more on execution. I like to know what is to be done and how. I figure, the results will follow. For example, after a farmer plants his seeds, he doesn't run out to the field everyday, fretting about whether his crops will come in or not.

No, he knows that if he does the right things at first, his goals will be achieved.

Freight brokering raises interesting situations with different people. Some only focus on "how much money can I make?" This is a legit question and, even though no one really knows, it is a real concern for some.

However, in my training, I focus on principles, strategies, techniques and tactics. Pretty much in that order. Knowing what to do, how to do it, in what sequence and why. This is important to me.

Principles don't change. Strategies may change but not haphazardly. Techniques and tactics may change often but should fall within the scope of a particular strategy or principle.

Does this make sense to you? Many people are falling for the end results. "Where's the $$?" Others get so entangled in everchanging techniques and tactics they don't know what they are doing.

So, here at ATEX, we first lay out some principles and corresponding strategies. Then we get into the techniques and tactics. At least, this is my approach. Success comes from "doing", not just thinking.

Freight Brokers: What Does It Take to Succeed?

There may be many paths to get INTO freight brokering. There is only ONE path to succeed. And that is PROPER EDUCATION.

There are no short cuts here.

I am getting a lot of phone calls from individuals who already have their authority, they have begun business and, yet .....

They have NO idea what they are doing.

They thinki it is easy. Even the smartest and hardest working successful freight brokers have paid their dues either with getting the right education or having the right experience.

I think I'm getting the over flow of the $99 specials. They have met their reality.

Get real, get educated. $1,697 is a measely price to pay compared to what you can pull in IF you see it through.

Contract Rates Versus Spot Rates

Why are some shippers wanting to lock in rates for the year with contracts? It's simple. They fear that rates are headed higher in the coming months and they would rather lock them in now.

Those brokers and shippers who don't work with contracts, work with spot rates. That is, the rates are negotiated on a daily basis. There is no contract except on an individual load basis and, even then, many shippers and brokers don't actually sign contracts for individual loads.

There is a lot to be said here about rates, contracts, negotiations, lane analyses and so on. One thing for sure: those in the know won't be letting you in. This is a tight-lipped business and you have to figure things out yourself. Or at least you have to have a good approach to be successful.

In my training, you are presented with several business models and tools to help you negotiate, monitor activity and analyze alternatives. Otherwise, you are just winging it. Don't do that.