The art of negotiation
#21
Rookie
Join Date: Dec 2007
Posts: 49
That is some decent info. I work for CH Robinson. When negotiating, when we give you a rate I wouldn't go more than $400 - $500 over what they offer you. When I give a carrier a rate I try to give myself $200 to work with. Like if I offer $400 I can pay $600 and be right at that break even point but shoot for $550. But if I offer $400 and you come back with $800 - $900 I might say I will check with the customer because I don't want to just say no and sound like an ahole but the truth is I am going to get on the phone and find another option because I don't feel like we would be able to agree on a rate. Probably 90% of our customers have year round rates in place with us and they dont give us more money. We do have some where we can go back to the customer for more money but I know with my customers that is a last resort. Our customers expect us to move their freight at the rates that are agreed upon at the beginning of the year. So if we go back to the customer asking for more money it looks bad on our part. I will usually take a loss on a load before going back to my customer. But it is the same both ways, you guys don't like to get low balled and we dont like you guys to blow our rate out of the water. But anyway, just my point of view, that is what I do but everyone negotiates differently.
#22
BANNED
Join Date: Apr 2007
Location: Long gone from here
Posts: 0
Originally Posted by CHRBROKER32
That is some decent info. I work for CH Robinson. When negotiating, when we give you a rate I wouldn't go more than $400 - $500 over what they offer you. When I give a carrier a rate I try to give myself $200 to work with. Like if I offer $400 I can pay $600 and be right at that break even point but shoot for $550. But if I offer $400 and you come back with $800 - $900 I might say I will check with the customer because I don't want to just say no and sound like an ahole but the truth is I am going to get on the phone and find another option because I don't feel like we would be able to agree on a rate. Probably 90% of our customers have year round rates in place with us and they dont give us more money. We do have some where we can go back to the customer for more money but I know with my customers that is a last resort. Our customers expect us to move their freight at the rates that are agreed upon at the beginning of the year. So if we go back to the customer asking for more money it looks bad on our part. I will usually take a loss on a load before going back to my customer. But it is the same both ways, you guys don't like to get low balled and we dont like you guys to blow our rate out of the water. But anyway, just my point of view, that is what I do but everyone negotiates differently.
#23
Wait a second! So, it is possible to get a decent rate working with brokers ONLY!!! You just need to know how to deal with these people over the phone without sounding desperate ... Jeez ... Someone said you'll go broke if you work only with brokers... I guess if I were to get my own trailer with chrome wheels I could start with brokers and then build up a few contacts among direct shippers. Is this doable or am I daydreaming? I'm thinking basic flatbed with no tarping or maybe to splash and get one of those good-looking-expensive-as-hell quickdraw tarping systems.
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#24
Guest
Posts: n/a
Originally Posted by tracer
Wait a second! So, it is possible to get a decent rate working with brokers ONLY!!! You just need to know how to deal with these people over the phone without sounding desperate ... Jeez ... Someone said you'll go broke if you work only with brokers... I guess if I were to get my own trailer with chrome wheels I could start with brokers and then build up a few contacts among direct shippers. Is this doable or am I daydreaming? I'm thinking basic flatbed with no tarping or maybe to splash and get one of those good-looking-expensive-as-hell quickdraw tarping systems.
#25
Member
Join Date: Dec 2004
Location: Shawano, WI.
Posts: 114
Originally Posted by CHRBROKER32
That is some decent info. I work for CH Robinson. When negotiating, when we give you a rate I wouldn't go more than $400 - $500 over what they offer you. When I give a carrier a rate I try to give myself $200 to work with. Like if I offer $400 I can pay $600 and be right at that break even point but shoot for $550. But if I offer $400 and you come back with $800 - $900 I might say I will check with the customer because I don't want to just say no and sound like an ahole but the truth is I am going to get on the phone and find another option because I don't feel like we would be able to agree on a rate. Probably 90% of our customers have year round rates in place with us and they dont give us more money. We do have some where we can go back to the customer for more money but I know with my customers that is a last resort. Our customers expect us to move their freight at the rates that are agreed upon at the beginning of the year. So if we go back to the customer asking for more money it looks bad on our part. I will usually take a loss on a load before going back to my customer. But it is the same both ways, you guys don't like to get low balled and we dont like you guys to blow our rate out of the water. But anyway, just my point of view, that is what I do but everyone negotiates differently.
#26
Originally Posted by ash_ca_la
If you want an easier tarping system, get yourself a tall side kit with tall bows
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#27
Member
Join Date: Jul 2005
Location: Los Angeles - Austin - Houston - Dallas - San Antonio - Laredo
Posts: 191
THX Bonnie for your permission on using your negotiating info.
http://truckinginhighgear.com/forum/index.php?topic=9 THX Steve for posting it here. And THX Classadrivers for this great trucking forum! I am researching 'everything' trucking. Would appreciate PMs on any great leads to unique trucking subjects/information from all forum members! We need a mentor (a couple three?)/consultant. What would such a fee look like? God Bless all!
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#30
Member
Join Date: Jan 2007
Location: Barstow, CA.
Posts: 141
Hey, Bonnie- Fancy meeting you here! One of the Mods pulled ALL of the stickys. However, I'm sure that this one will be BUMPED frequently..
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