The most important job for any owner-operator or small fleet owner is finding the best-paying freight loads to haul. For many, this task is the most difficult part of owning a trucking company. Unfortunately, many truckers and owner-operators go out of business because they don’t know how to find good loads. This article shows you how to get high-paying freight loads. We cover:
- Are load boards worth it?
- What type of client do you want?
- How to find shippers that pay well
- How to sell your services to shippers
- The U.S. government moves tons of freight
- Should you work with freight brokers?
- A simple strategy to find loads and get you started
- Avoiding cash flow issues from new clients
(Note: we do not provide trucking contracts. This article is provided for information purposes only)
1. Are load boards worth it?
Most new truckers make the mistake of getting loads by relying solely on load boards or jumping from broker to broker. This approach is not an effective way to run, or grow, a trucking company. Load boards are highly competitive and often pay the least per mile.
While some load boards can help you if you are just getting started, use them carefully. Otherwise, you could end up with loads that pay less than your cost per mile.
2. What type of client do you want?
Before you start looking for high-paying loads, define the type of client you want. This ideal client is determined by the industry you are supporting and the lanes you plan to work.
Many owner-operators skip this step – assuming that it is unnecessary. They know a good load or client when they see one, so why bother writing it down?
Knowing your target client gives you a clear perspective on what you want. More importantly, it helps you develop a plan to find them. This step is critical and takes only a few minutes.
Here is how some truckers define their ideal client. Obviously, add or remove items to suit your needs:
- A large, established shipper
- Pays well
- Pays on time
- Provides quick pays
- Has a good reputation
- Gives you loads regularly
- Provides shipments that match the lanes you want to drive
Obviously, no client is ever truly perfect, but you should be able to find clients who are very good and pay good per-mile rates. That is how you grow a trucking company and make it successful in the long term.
3. How to find shippers who pay well
Now that you know who your perfect shipper is, you need to find them. The tried-and-true way to find clients is to go to the places where they congregate.
For example, you can often find good clients by joining industry associations with local chapters in your area. By the way, we are not talking about trucking associations. There are no clients there – only competitors. We are referring to industry associations that your ideal clients belong to. That is where your business growth can come from.
a) Some examples
For example, if you are interested in getting potential retail store clients, find a local association of retailers and see if you can join them. On the other hand, a trucker looking for reefer loads has a good chance of finding solid clients by going to produce markets or wholesalers.
Lastly, if you want to move cars, explore joining organizations that represent auto dealerships. You get the point. Almost every industry has an association or a place where they gather. That is the place to be. Since few truckers actually take this step, you will have an advantage over competitors.
You don’t need to focus on the common industries either – take some time and examine which local industries could use your services and are under-served. Focus on those industries; that is where you have the opportunity to get the highest shipping rates.
b) A tip about industry associations
Many industry associations allow only companies that work in their industry to join. The majority also allow for “corporate” or “related industry” members. That is your way in. This strategy allows you to meet their members and see if you can help them fulfill their transportation needs.
One last point. Many industries organizations have publicly available membership lists that include names, contact numbers, and email addresses. These lists are also great ways to build a prospect list. Use them very carefully and be professional.
Once you have the list of prospects, the real work begins.
4. How to sell your services to clients
Now it’s time to do what most of your competition hates doing: you have to sell. Period. There is no other way around it. The process is fairly simple but it varies.
Call prospective clients and speak to the person in charge of shipping. Try to set up a meeting. If that attempt fails, send them a letter. Your objective is to determine how they select the carriers they work with and get on that list.
Simple? Yes. Easy? Not a chance. But here is why you have a good chance of success: while your competitors are chasing loads using load boards, you are doing the hard work and securing prime clients to give you high-paying freight loads.
5. The U.S. Government moves tons of freight
By the way, don’t neglect moving freight for the U.S. government. The government can be a great client who provides regular work and reliable payments. Getting government contracts is not easy, but it can be worth the effort.
For example, consider pulling freight for the US Postal Service. As long as people send mail, you will have work. Alternatively, find a way to get on the GSA list or look for opportunities to move military freight. Note that military freight may require special clearances, but some truckers claim that it pays well. A good place to start is Sam.gov.
6. Should you work with freight brokers?
Having a few freight broker contacts helps keep your trucking company moving during slow times. However, working with a freight broker comes at an expense. You are sharing the revenues with them, so you will likely earn less than if you were pulling loads directly for shippers.
Keep in mind that finding good and reliable brokers to partner with can be as difficult as finding direct shippers. However, direct shippers will likely pay you high rates per mile.
7. A strategy to find loads and get you started
The best long-term strategy to build a profitable trucking business is to find your own shipping clients and work exclusively with them. You should focus your efforts on this objective. However, it’s not your only objective.
Meet with freight brokers and determine which ones could make good prospective partners. Working with brokers can help you fill up your schedule during slow times.
Lastly, if all else fails, consider using a load board. Just remember that load boards are very competitive so you won’t get paid as much as direct shippers and brokers. Load boards can be a good solution for the short term while you build other, more profitable sources.
8. New clients can affect your cash flow
Growing your client base also grows your revenues. However, it may also bring some financial challenges. Shippers and brokers pay their invoices in 30 to 60 days. However, truckers often need funds sooner. They need to pay for salaries, fuel, and repairs. These situations can create a cash flow problem for the operator.
One way to solve this problem is to use freight factoring. This solution provides an advance on your slow-paying invoices. Many factoring companies also provide fuel advances, which help cover the initial fuel expenses associated with the load. Both factoring and fuel advances provide the funds you need to run the business and take on new clients. For more information, get an online quote or call us toll-free at (877) 300 3258.
To learn more, read “What is Freight Factoring?“