John Thomas on Freight Brokering

Are You Simplifying This ..... ?

Time and time again I find people who think they can just go to the loading boards and find all the loads they want. Well, if you are in trucking, yes, this is the way you would do it.

But you are a freight broker.

About the only loads posted on the loading boards are being posted by other freight brokers. You don't want to go to them for loads --- you want to go directly to the shippers and get your own loads.

Then other people tell me about at least one other loading board where shippers post their loads. But, guess what? The loads are usually priced to go directly the carriers. You would have trouble finding a decent profit for yourself and still able to pay a competitive rate to the truck.

The basic problem here is that many people think this business is just a snap --- a piece of cake.

Not too many things in life are a snap. And you are just being ignorant or deluding yourself if you think you can find loads from these loading boards much like picking apples off the tree. It just doesn't work that way.

My point is, you had better get prepared to search for shippers --- you own customers. Sometimes it's a painful journey. But that's the only way you want it because if it were easy, you'd find this industry more cluttered and competitive than it already is.

You need to develop success strategies for success that you and only you know how to use. We can help.

Freight Broker Loads: They Are Out There .....

Earlier today, I had a call from Eric L. from South Carolina. We finished training last week. He was a go-getter, I could tell from the start, and he called to tell me about his first two loads.

One, is giving him a 28% profit margin and the other a 12% profit margin. This is great. He is thrilled.

The loads are out there.You just have to go out there and get them.

Freight Brokering: How to Keep from Freaking Out

I have a few clients who, after finishing the formal part of training, sort of freak out at the thought of a customer actually giving them an order.

This is normal for some people.

And if this is a roadblock for you, read on. Here is how to help overcome this potential roadblock.

After formal training, you will want to go through a mock situation.

Usually the first thing you will do is to call shippers. So, you would review the materials on finding shippers and getting set up with them.

Then the next thing you will do is to take the order. So, you would review the materials on taking the order.

Then the next thing you will do is to post your loads on the loading boards. So, you would review the materials on posting loads, calculating rates, etc.

Then the next thing you will do is to expect getting phone calls from carriers who are interested in taking your load. So, you would review the section on prequalifying the carrier and booking the load.

And, so the process goes on and on until you finally collect your money from the shipper.

The point is, don't try to think about the entire process all at once. You can only do five or ten things at a time, not twenty or thirty (just kidding).

But, if you discipline yourself to take one step at a time, you will very quickly get into a routine where you will not only not freak out, you will be working smoothly and efficiently without a lot of stress.

5 Steps to Freight Broker Success

The freight brokerage business is not necessarily complicated. You don't need
a lot of formal education. You DO need to know, however, the essential steps that will
get you organized to operate successfully.

Go here now to find out: Freight Broker Success - 5 Steps

Communications With Your Driver

Every freight broker who assigns a load to a particular carrier, assumes a high level of responsibility for each load. The freight broker is required to at least know where the cargo is during transit and if there are any potential problems. After all, the shipper is entrusting the freight broker with their cargo.

One particular oversight that may occur is when the carrier does not call-in to let the freight broker know when the load was loaded and when the load was unloaded.

This does not mean when the carrier arrived for pickup or when they arrived for delivery. It means the actual loading and unloading of the cargo.

When a carrier neglects to communicate, they are often noted for their deficiency and the freight broker may pass them up on future loads.When the carrier does notify the freight broker on getting loaded and unloaded, the freight broker should note this and document this in some form whether in their software or manually in a log or spreadsheet.

It's only right for everyone to recognize the importance of good communication. As insignificant as it may seem, getting loaded and getting unloaded are very important to the freight broker.

Small Freight Brokers Vs Big Competition

Some people ask how they are able to compete if they are up against some real giants in the industry. They rightfully wonder if there is a chance for them. After all, a new, one-person freight broker office is pretty, pretty small - to say the least.

But, guess what? You don't need to play this game as if you are inferior. Here is why. There are many freight brokers out there who are either getting very expensive or getting sloppy with their service or both. I've heard that some of the larger brokers, especially, are really expensive.

There is no problem with trying to maximize your income but if you begin working outside the budget of your shipper customers, they will start looking elsewhere.

And this is where YOU, the small freight broker, just might get a chance to get some loads - even against all odds.

If you are a small freight broker, you have to know what you are doing and you have to work, giving exceptional service. If you continue in this, you will guarantee yourself a niche.

So, don't cower and think you are inferior to anyone. Get out there and do your stuff and do it right over and over again.

Freight Brokers: Why and How to Calculate Miles

Many freight brokers do not have a truck or a fleet of trucks. And, yet, it's a good idea to calculate the miles on each load that is given to a carrier.

The basic reason for the freight broker to calculate miles is to know in their mind before they post a load how much per mile are they offering the truck.

If the rate is too low, the freight broker may want to decide if they want to work as a "cheap" freight broker or do they want to hold out for better rates. After all, better rates offered to the trucks means attracting more loyal carriers.

There are free resources on the Internet for calculating miles. Some of the loading boards will automatically calculate your miles for you when you post a load. It's not necessary to have "door-to-door" mileage. A good measure of "practical" miles is enough from city to city. Be sure to calculate "practical" miles rather than "quick" miles.

So, you don't have to be a truck driver to need information on how many miles you have on a load.

Booking the Load: How Freight Brokers Do It

"Booking the Load" is a common phrase among freight brokers when they begin the process of "hiring" a motor carrier. Usually, as soon as the carrier says, "I want the load", the booking process begins.

The first thing a freight broker will do will be to check out the carrier's authority, insurance and maybe the safety records. I have heard many stories of freight brokers not knowing how to do all this - or they neglect doing it. In fact, there are insurance companies selling insurance to freight brokers in the event the freight broker gets caught with their pants down in the booking process.

What a shame. It takes less than 5 minutes to check out a motor carrier and there is no excuse for not doing so except for lack of knowledge or indifference.

If a broker fails to check out a carrier and document it, the broker faces the possibility of being "negligent" or providing misleading information. Either case, it's likely a broker won't last long in business.

In our training, we go into detail regarding all the steps required to properly book the load with the carrier. (There's a certain sequence required as well). We also go over the legal implications for not doing so.

Freight Broker Success Strategies .....

There are many, many avenues to success in any business and freight brokering is no exception. Likewise, there are many avenues to failure. But let's focus on the "success" aspect.

There is a four-step formula that will work if the business owner applies his or her creativity along with a systematic approach. The most interesting part of this is that if you stick with step one and follow through, then the following steps help reinforce and establish step one.

It's sort of like a snowball effect. You get things rolling at first with very humble beginnings, you push and push, and eventually you have this gigantic snowball.

So here are the four steps:

1. Lead Acquisition - the art and science of acquiring potential customers,
2. Integration - Aligning your services to your customer's needs,
3. Systems - the art and science of creating effective procedures, delegating when possible, communicating effectively and taking the time to do proper planning, and
4. Scalability - selling to new audiences or offering new services to existing ones

These are real general, broad stroke beginnings but if enough thought is given, each individual should be able to come up with some very specific tactics.

Freight Brokers Giving Quotes

Often times before a shipper will want a freight broker's set-up package, the shipper will want the broker to give quotes on one or more loads. In some cases, the freight broker has no idea unless they use a rate service. Other times, the freight broker will have trucks and will have no problem coming up with a quote or quotes.

When a shipper asks for quotes, the real questions are:

• Is the shipper actually wanting to offer you the load?,
• Are they using you as a "sounding board" with not much of a chance to give you the load?, or
• Are they throwing your quote into a large pool along with hundreds of other quotes?

Only time and experience will tell you.

If you are currently brokering, what is YOUR experience with giving quotes? Let's hear from you.