Becoming familiar with the lanes you run and knowing what kind of rates you can squeeze out of them is a very important part of landing and keeping new and existing customers. When I started out on my own authority six months ago I was very familiar with the lanes that I now run regularly. What I was not as familiar with was what to charge to run those lanes as the trucking company itself. Running them for years as an owner-operator leased to a carrier did however give me a good idea of the work involved and gave me familiarity with many of the large local warehouses, but did very little to reveal any transparency of how the rates were being calculated.
I will be the first one to admit that I probably took some hauls in the beginning for rates far below the average going price. In all honesty, for a starting owner-operator on their own authority, stumbling through the beginning with low rates can be a good way to find new lasting customers in a way. If you think about many of the every day items you use around the house, in your garage, or even in the yard, you most likely will find a few items you bought only because they were “on sale” or “clearance”. I learned through my stumbling that "Coupon Special-like" introductory rates are a great marketing technique that can be applied in trucking as well.
Coming in low on rates in the beginning, compared to some of the already existing local carriers, allowed me to get my foot in the door. Mostly anyone can tell a customer over the phone that they are the best thing since “sliced cheese”, but until that gloating person has hauled a few loads, there is no true way for that customer to know the real level of service quality to expect. I learned of this recently when I was able to increase the rate on a dedicated haul that I do because of the work involved for making these loads happen on-time every time. The customer didn’t even flinch at the increase to a premium rate because I had now already proven myself as a dependable carrier. After giving an introductory rate on that haul at first to be competitive, I was able to adjust it to match the proper price for the amount of headache these particular loads bring me after a couple month of consistent performance.
In doing business this way I have learned not to step over a penny to pick up a dime. Instead, I grab all the money I can along the way, scooping up the penny and the dime in one handful! However, remember a quick tip in pricing for any trucking company…If they jump at your price too fast it probably means you're coming in low and if you don't get a call back, you are probably too high or they found someone else to do it cheaper! Just remember not to be afraid to haul the cheaper load with hopes of getting that "gravy" load later on. Patience, performance, and adjusting the rate at the appropriate time can lead to happier customers, ultimately providing you with a more consistent freight base!