Negotiating is one of the most important skills a trucker can possess that will improve his financial position or his work environment. But it’s one of the areas where most drivers are the weakest.

Here are some guidelines every trucker should follow when negotiating, whether for better loads, better per mile pay, better dispatch, better job, or contract.

No matter what you’re negotiating, being prepared is the first step.

1. Know all the facts. This includes any financial information and   knowledge about the people with whom you’ll be negotiating.  
2. Know the answers to any questions you’re going to ask.
3. Be prepared to back up any statement or answer you have with   the facts.
4. Check all emotions and attitudes at the door.
5. Set specific goals that must be met in order to continue   discussion.
6. Have a final destination mapped out.
7. Always have an exit strategy if objectives aren’t met.
8. Don’t give up something without getting something of equal or   greater value in return.
9. If you have to give up anything, always make it seem painful to   you.
10. Have your entire negotiating strategy written down and in   front of you during all negotiations, and include all   supporting documents and facts you plan on using.
11. Practice, practice, practice—know your material before you sit   down at the bargaining table.
12. Listen more than you speak.

Rules of Engagement when dealing with brokers and shippers:

1. Know your current break-even point; not last week’s, last   month’s or last year’s.
2. Establish a hauling rate range based on your break-even point.
3. Know the load potential of the area in which you’re negotiating   and the destination where the load is going. (Loads to truck   ratio.)
4. Don’t ever allow the broker or shipper to establish the rate. It’s   human nature, when you’re paying for something, to quote the   lowest price possible. Brokers and shippers are no different.
5. Know the facts of the load before providing a rate. The more   detailed information you have, the fairer rate you’ll quote. The   when, where, how long, and what is expected are necessary to   establish the correct figure.
6. If the broker/shipper gives you a rate before you’ve had a   chance to figure yours, simply continue getting your load facts.   Once you have all the required information, calculate your rate,   and politely provide them with your hauling fee, explaining   this is based on the actual cost of providing the service.
7. Never provide them with your lowest rate; make them work to   get any rate lowered. They must provide you with a reasonable   incentive, such as multiple loads, return tonnage, etc.
8. Negotiating hauling rates works with the law of gravity—it’s   easy to lower a rate; next to impossible to raise one.
9. Always do a credit check before agreeing to haul a load for a   new customer or broker.

Here are additional rules to adhere to as you negotiate:

1. Never ask how much the load pays.
2. Verify your load information is correct.
3. Have a negotiation strategy laid out.
4. Know the absolute rate you must have, and never let your focus   drift from it.
5. Quote a hauling rate that includes all required miles, days,   fuel costs, tolls, special services, etc. that is well above your   break-even point.
6. If they accept your rate, you’re home free; but if they balk at   it, be prepared with a counter-offer.
7. Be prepared for the unexpected. Anticipate.
8. Know your worst-case scenario, and know when to say ‘no.’
9. At all times, have your break-even figures in front of you.
10. Be prepared to say ‘no,’ and walk away.
11. Always keep your cool.
12. Always be polite and courteous. You never know when you   might need them again.

The trick to effective negotiating is always keep your cool, listen to what they have to say, answer their questions completely and honestly, but don’t volunteer any more information than they need.

For negotiations to truly work there must be a desire and effort on both sides to be fair and equitable. But remember, don’t always assume this is the other side’s position; be sure they work to earn your respect, as you’ll put the effort forward to earn theirs.

Remember, it’s your company, your truck.

Timothy D. Brady is

•  A 20 + year moving & storage veteran.
•  AMSA’s 2002 Super Van Operator of the Year HHG.
• The “Trucker’s Business Advisor” on Sirius Road Dog Trucking Radio’s “Open Road Café.”
• Author of several top-selling trucking business books.
• A columnist  for several trucking industry publications.
• An instructor for trucking business workshops through a partnership with a major university and local community college.
• Join him for his next I.C.E. (In-Cab Education) ® Workshop. For a workshop schedule go to www.truckersu.com
• Available for speaking engagements and to conduct workshops for truck drivers, trucking companies and trucking industry personnel.

Contact him at tbrady@writeuptheroad.com or call (731) 749-8567.