One of the benefits of being an Owner-Operator is the ability to run your business as you wish. Running loads and getting the best freight rates are critical to generating income and your overall success. But how do you know which loads to choose, negotiate, and ultimately book?
In this article, we sit down with owner-operator, Corey. Corey has a wealth of knowledge, experience, and perspective around just that - choosing, negotiating and booking loads that keep his business afloat and earn an income to support himself and his family. As he says, it's the "meat and potatoes!"
The Case for Shorter Runs
Corey grew up experiencing the trucking industry through his dad - also an owner-operator - and he is now experiencing it for himself. He has 7.5 years of driving under his belt and has been an owner-operator for 5.5 of them.
Corey self-dispatches, which means he is solely responsible for finding and securing his own freight. The interesting thing about Corey is that he doesn't actually enjoy driving. He is in it for the business opportunities. This provides an extra incentive to be as selective as possible about the loads he runs.
Unlike many OTR drivers, Corey prefers running shorter distances of around 200-300 miles per day. Corey likes running the Northeast - from Maryland to upstate NY, and everywhere in between (especially Pennsylvania). This is where he's found the sweet spot between fuel prices, freight rates, and the short types of runs he loves.
There are many benefits of short runs:
- It allows him to maximize home time with his family.
- It keeps miles off of his truck.
- He is rarely up against the 34-hour reset.
- The final mile pays the most money.
However, short runs also mean that Corey spends a lot of time finding and securing loads. So how does Corey do it?
Finding the Load
Many factors determine which loads are right for you: freight rates, fuel prices, shipper and broker reputations, personal preferences, etc. Corey starts by observing the load boards in advance of when he's planning to run. This could either mean a few hours or a few days, depending on his capacity. He first pulls up the TrueNorth app, which compiles the main load boards into one platform. Here are a few things that Corey makes sure to do each time:
Have a Good Filter
Filter through all of the noise by what you're looking for, which could mean geographic area, distance from current location, type of freight, broker, etc. Or, if it's easier, you can filter out what you're not looking for.
Corey filters by loads within 50 miles from his current location and refreshes and checks it every 5-10 minutes. He'll also review the heat map, a color scale reflecting the different markets across the country based on capacity and rates, to get a sense of his best business opportunities.
Monitor the Market
The spot market changes by the second. Sometimes, being there at the right one to get the best load makes all the difference. And to know which is the best one, it's a good idea to get to know the market and see what it's doing at any given time.
Let's say Corey is heading to New York the next day. He will look that day to get a pulse, see the trends/rates, and make sure he has seen and knows all the options before booking. It's all about "being able to adjust on a whim because things change instantly. Not being dead set in my ways allows me to pivot as needed for the health of my business."
Identify the Information Gaps
Often, the load post doesn't contain all of the critical information. Corey's process is to call the broker or customer to fill in any gaps.
For example, Corey was recently in Atlanta on his way back home to Florida. Many load postings in Atlanta simply say Atlanta, rather than the specific location. That information is crucial. As we know, Atlanta is a massive metropolitan area, and you could end up on the other side of the city. Corey says, "it's worth taking the extra 5 minutes to find out the zip code to know what to expect. If not, it can mess up your day."
Other information that may be missing includes whether it's a distribution center or warehouse, when the shipper opens/closes, and how strict they are about on-time appointments. All of these can factor into whether or not you should take the load.
Negotiating the Load
Once Corey has determined his best option from the load boards, and feels comfortable/satisfied with it, he contacts the broker to:
- Find out that missing information
- Negotiate for a higher rate
- Develop a relationship with them
Reach out Directly to the Broker
Corey contacts the broker based on the guidance he sees in the post. He prefers to get the broker on the phone whenever possible, however, some indicate the broker prefers email only, in which case he respects that.
Corey shares, "In my 'notes' app on my phone, I have a pre-written message that I can send quickly to brokers that only like to post their email instead of their phone number. Whenever they reply back to me, it has their contact information [in their signature]. They also then have my email and other contact information on file so they can easily come back to me if I'm not willing to budge on my rate."
Gather and Record Additional Detail
According to Corey, ‚"You can never get too much information about a load." Corey introduces himself and starts to build a rapport. He gathers all of the information that he needs to know as much as possible about what to expect if he commits to the load.
As Corey's on the phone, he records essential information about the brokerage and the load in his notebook, including the name, contact info, and delivery details, to form a strong relationship and reach out to them in the future. He prefers to keep a physical notebook so that he can easily refer back to it and so that he doesn't have to risk being in an area where there may not be reliable internet access.
Corey keeps his cost-per-mile, or minimum amount that he needs to make to cover his costs, in mind at all times. This helps him determine the rate-per-mile he needs to be profitable and whether he should accept a particular load. As you can see above, he compares these numbers by examining the number of deadhead miles, the revenue, his cut of the revenue, and his cost-per-mile, for every load he is considering. This information will inform his negotiation strategy.
Try to Get a Higher Rate
Once Corey learns that additional information about the load, he puts his negotiation skills to work. When it comes to the rate, Corey lets them do most of the talking. Corey shares, "I never give out the first number.‚" This is for two distinct reasons:
- It's possible for different brokers at the same agency to post the same load. Person A may have the load posted for $500 cheaper than person B.
- The price may have gone up in the 5 or 10 minutes since they last posted the load. Some of these loads are high priority in the spot market. When brokers are more desperate to move freight, the price has to go up. It's a beautiful system, you just need to know the market.
Your ability to negotiate depends on the market you'e in. This ties back to knowing the Heat Map, because if you're in a hot area with more freight than trucks, you have all the power to negotiate up. If you're in a colder area with more trucks than loads, understand that you need to get what you can get to get you to a hot area.
Based on the load, there are also small things you can try to negotiate. For example, if the delivery time is not until tomorrow evening and will eat up Corey's entire day, he may ask, "Can you add in another $500 to compensate for that time?" The broker may say "I can't do $500, but I can do $350." Well, that's not as high as you were hoping, but it is still something. All it takes is asking.
Corey believes that few things are as important as staying flexible, on your feet, and reacting to whatever comes your way.
Always Remain Professional
Brokers deal with huge amounts of freight on a day-to-day basis. Try to develop a relationship with them and conduct yourself professionally. Be articulate to get your point across to the broker that you go above and beyond to make sure you stay in good communication and are respectful in every way. The saying that you get what you pay for is true. And you never know who you're going to come into contact with again, so be sure to leave a positive impression.
When working with so many different brokers all the time, especially given the short runs he likes to do, Corey tracks his interactions with brokers in his notebook. In doing so, he's able to distinguish between the brokers with whom he loves doing business with, and those whom he may avoid in the future. Of course, he wants to do good business with good people, and sometimes, he is willing even to take a slight pay cut to get to work with them.
Booking the Load
After Corey gets all of the details of the load, negotiates, and is satisfied with the terms, he will go ahead and book it. He sends the RateCon to our dispatch team, who also reviews it, and ultimately, signs it on his behalf to make it official. At TrueNorth, all Owner-Ops have full transparency into their own RateCons.
The last thing to do is actually run the load! And then, of course, repeat this process by starting back at finding your next load. 😃
Final Thoughts
Everyone has their own way of doing things based on what works for them. And this is a beautiful thing. We hope that learning about Corey's process can help provide additional insight and context on the way he does it. And may even inspire you to try something new and different that could work for you. After all, we're all in this together. Sharing and learning from one another can help us find and capitalize on the best business opportunities.
How do you go about finding, negotiating and securing freight? We would love to hear from you!
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