Negotiations

Negotiations are an everyday task in the business as an Owner Operator. Part of what can make or break an O/O is the ability to negotiate rates. Haggling over a price can be a nightmare at times. Once the conversation about a load turns to something just about the money; you’ve most likely lost. At that point you have left money on the table and you are taking a hit to your profit. When starting negotiations you should always know your personal and your company’s strength/weaknesses. You should be able to sell yourself for the load as a service provider and justify a better price than offered. While in negotiations you should always ask a few questions to receive basic information about the load. You should always know what your cost per mile is, how long the load will take to finish, how long the dead head is for this load, and what the capacity to load availability ratio is in the delivering city. These key pieces of information will help you to decide whether or not this load is worth negotiating over. Another thing to keep in mind is whether or not this load will open any more opportunities, such as more loads with this broker or loads out of your new loactions.

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