This is the worst question you can ask when talking to a freight broker or shipper �because it puts total control of what they�ll pay on the load into their hands.
Picture this: You have a wheelbarrow filled with dirt at the top of a hill, or you have the same wheelbarrow at the bottom of a hill. Obviously getting that dirt-filled wheelbarrow to the bottom of a hill would be a lot less work than trying to push it to the top.
Now think of this wheelbarrow as your freight rate: do you want it at the top of the hill, or in the ravine at the bottom? If you ask, �How much does the load pay?� you�ve just put your rate wheelbarrow at the bottom of the ravine, hoping you can push it back up the hill where you want it. If you don�t ask the question, it�s on top of the hill from the beginning. All you need to do is control your descent.
To keep your rates from dropping too far down the hill, you need to know:
Once you have this information, you�re ready to work toward keeping your rate wheelbarrow as near the top of the hill as possible.
The point: it�s much more difficult to move a hauling rate higher than it is to lower one.
But, if you allow the shipper or broker to quote you a low rate or you fail to have the correct data concerning the rates and other freight in the area, you have created the task of needing to push your rate higher.
To ensure you receive the best rate, you must know the market forces that can affect your rate and have the information at hand:
If they accept your rate, you�re home free. But, if they balk, negotiate.
In other words, keep your freight rate wheelbarrow under control and as close to the top of the hill as possible, and you�ll receive the revenue you need to make a profit.
Good loads and good roads, everyone.
Timothy D. Brady
Brady is a 25 +year trucking veteran owner-operator /company owner
Contact him at www.timothybrady.com or call (731) 749-8567.