To succeed in any business, you've got to know what's important to your customers. Let's break it down:
Shippers: They're concerned about cost, but that doesn't mean you must have the rock-bottom price to win the load. Shippers want to move loads for a low price to maximize their profits, but they don't want to spend their day shopping either. They also appreciate someone they can trust to get the job done right at a fair price.
Small shippers more commonly work with freight brokers. Larger ones typically broker in-house, and/or may have their own trucks. But many times, these shippers have more work than they can handle and still work with brokers. It is worth your time to build relationship with these companies. Show the shipper that you can provide great service at a great price and you'll have a long-term client.
Carriers: They want to move loads for the highest possible price to maximize their profits, but don't take their first quote as final. In most cases, you can negotiate with the carrier. However, you need to realize the sharp increase in fuel prices and other operating expenses have hit the industry hard. This has lead to many small carriers going out of business resulting in lesser "capacity" of available trucks in the market than previously. Remember, carriers need to cover their expenses and make a profit to survive. So be fair to the carrier, always pay on time and make a good name for yourself. These companies are your business partners and you need their trust and reliability--just like they need yours.
As a broker you should have 3 primary types of insurance to protect yourself. After all, if something goes wrong, you don't want to be held holding the bag. Cargo Insurance: If the shipment is lost or damaged, and the carrier's insurance company refuses to pay, then it pays the shipper. Contingent Cargo Coverage: This second level of insurance protects you in case the carrier goes out of business, or their insurance company becomes insolvent. If this happened and you didn't have contingent cargo coverage, guess who has to pay? You. Liability/ Errors and Omissions Insurance: Despite your best efforts, it's still possible to make mistakes. This protects you and your business in the event that YOU screw up.
Keep in mind that everyone you deal with is working to create profit in their businesses. Your need to negotiate a good deal for yourself, but also make sure it is a good price for the shipper and for the carrier. If the carrier realizes that he isn't making any profit off of a load, he may not want to work with you in the future. Similarly, if you rake the shipper over the coals just because he's desperate, he too will do business elsewhere next time when you might need him. By keeping track of your profit margins, along with your days-in-collection on the receivables from shippers, you'll be able to know what deals you can and can't afford to make.
It's the 21st century, and you need a good website to effectively promote your business. When done right, your website will be your single most important marketing tool. But when done poorly, your website can actually work against you.
So resist the temptation to create it yourself or to pay your nephew $300 to do it for you! He might be a nice kid and might be "good with computers," but unless he's a seasoned professional website developer, forget it. This cannot be stressed enough. You're better off giving him the $300 to wash your car. Just about anyone can build a cheap website, but it takes a seasoned professional to build one that brings you business. Remember, your business is your livelihood and this is not the place to skimp. Find an experienced, professional website developer. Or better yet, find an agency that understands marketing, advertising and search engine optimization. The goal is to develop a quality website that effectively "talks to" your target audience (shippers).
A major misconception is that if you build a website, business will come streaming in. Nothing could be further from the truth. People need to know your website exists. Your website needs to be built for search engines to easily find. It needs to be actively marketed to the major search engines and on other related websites as well. The web address needs to be on all of your marketing materials and updated continually. That is the key to a successful website. Sound complicated? It is. But fortunately, there are website companies out there that do all of this for you. It's worth the cost and will prove to be the best advertising money you spend.
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