¶ Intro / Opening
Welcome back . It's another edition of the Final Mile . Your questions we're going to answer them on today's show . If you're new , continue or I shouldn't say continue . If you're new , check out all of our other stuff . If you've been with us for a while , continue to share us , leave those comments , reviews and check out the Freight
¶ Welcome to The Final Mile
Broker Basics course . If you are looking for an educational option for you or your team , team and check out the sponsors down below to help support the channel . Ben , we're going to get right into it this morning . Man , all right .
First question and I think this came from , I think someone just emailed us or did a form on our website which you can do right at Freight360.net . They said here's my question . I've got about 10 customers , but they're all very small . The largest one might give me three loads a week at most . I'm trying to scale past the 10K a month mark .
I've quoted for one or talking brokerage profit there , or brokerage revenue , some people call it . That's what you're retaining after you pay your carriers , right ? So we're not talking 10K and customer invoicing , we're talking after we pay the trucks . Here's how much we're able to work with
¶ Scaling Past 10K Monthly Profit
as a brokerage . So 10K a month , I think is a great benchmark for folks to you know , to kind of aim for that's . You know , I would say you made it per se . If you get to that point , first thing I would say is great job having a diversified book with 10 customers , three loads a week for one . I think you know .
The positive there is that if you lose any one of those customers it doesn't ruin your business . But how do you get bigger customers ? There's probably two ways to look at it . How do you get more business out of your existing customers so they become a larger part of your book ? And there's also how do I get customers that just do more business .
There's really no change to your prospecting methods other than the types of companies that you're targeting . Ben , you've had kind of a benchmark of loads per week that a customer is shipping for them to be a good candidate . What would you say as far as the size of customers for this person to prospect ?
And then I'll kind of talk about how to leverage what you're already doing . But what would you say as far as size to be prospecting ?
Pretty much like . This was what TQL taught years ago and I think it always kind of holds pretty true , as if a company again there are exceptions to all of these .
It does not mean this always holds true , but it's like a rule of thumb If a company's not shipping at least 20 to 25 loads a week , they're not going to rely on a broker too often because they can coordinate with trucking companies . They usually sometimes have enough lead time to get the load so the trucks can reposition themselves for the shipper .
So they'll occasionally have a load that they need covered because they come up last minute . And those are probably the three loads a week that maybe this person's getting right . The other ones are probably going directly to trucking companies or they could be going to other brokers . But I mean most of the time . That pretty much holds true .
And if you think about it , if you're a one person cradle to the grave brokerage , if you're booking five loads a day , five days a week , that's 25 loads . One or two loads every other day falls off which requires you to scramble to recover that load .
That's what the shipper's doing , except the shipper doesn't have the ability to access that in the open market as quickly as you do , which is why those loads come to the broker right . So again , there's lots of other variables of planning . It's like the staffing at the shipper .
If there's three people there and they're moving 25 loads a week , like maybe they still don't need a broker that much because they've got enough people over there to call trucking companies . But usually a company of that size , shipping that volume , probably has one person and that's really where they'll need to rely on a broker for time to time .
Trucks that get held back , delayed incidents over the road you know traffic , whether they need somebody who can get them capacity in a short period of time , frequently enough that it makes sense to work with them .
Yeah , absolutely . Now the , as far as you know , what can they do to leverage their current book of business ? We've said this before . I probably don't say it enough . If you don't ask , you'll never receive most times from a customer , right ?
So whoever's given them three loads a week , I would and and your other nine customers , right , I'd be asking them about other opportunities that they've got , other lanes that they're running , because you're likely not moving 100 percent of their business If you are here's here's a trick to that .
Right Before you move past that point , I want to interrupt you . But , like , how you ask that question matters , right . If you're just saying what other freight do you have , that is clearly a self-centered question , meaning it's like , hey , I'm asking you what else I can have , what other freight do you have that I can run for you , right ?
However , if I give them a reason why they should tell me this , the whole thing changes . Hey , I know you have these facilities in these cities . We've got guys delivering for other customers that are in these areas pretty frequently . Do you guys have any other lanes during the week where you might need some capacity ?
Because , like I , literally already have drivers in some of these areas . Maybe we can match up some of the dates and times where I can either get you some better service or maybe some better pricing . Is there anything else you guys are moving that we can discuss to see if it makes a fit ? Now I'm giving them a reason why they should tell me about other
¶ Strategic Customer Prospecting Techniques
lanes instead of just asking what else I can have and what else I can price and what else I can get out of the situation .
Yeah , the other way I would do it too is just ask for general feedback on how you're performing service-wise for them . How are your rates looking , how are the drivers you're sending in doing , how's the interaction at the dock , any issues with paperwork or pickup numbers being confused ?
And when you sort of get that feedback , then you can , you know , assuming it's good feedback hey , you know how am I stacking up against your other providers ? Right , and you could crack the egg open on . Actually you're doing a great job .
I just I wish I can get so-and-so over at TQL , you know , to have the same kind of service you do , or whatever the case might be .
Well , and that gives you a clue into what else might be there . If you're talking to a customer and you can get them to tell you how many other brokers they work with , and you're getting three loads a week and they're telling you in one way or another they're working with four other brokers regularly , that's 12 loads , right , yep ?
Just take what you're getting to multiply by the number of other brokers are working with . It's not going to hold up 100% , but it gives you some insight into probably how that person is divvying up what they have and actually what they do have , that you might have an opportunity to service better .
Now , as far as you know , finding other shippers , the internet is like your best friend in this case . So if you know that , I'll just make this up , if this is a if your three load a week customer is like a small widget manufacturer . That's just a local , regional type production .
You can go to like chat , gpt or Google and just say like hey , who are the midsize widget manufacturers , united States or you know ?
Replace widget with whatever commodity and Google right up top now has like the Gemini AI thing or you know just sort of standard search or chat , gpt or any of the LLMs out there will help you or any other prospecting tool that you're used to using . Just look up the same type of commodity or manufacturer and search a higher revenue size .
So that will you know that will tend to get you the results you're looking for , because the key here is , if you're succeeding in a certain area , lean into that . There's no reason for you to pivot to a totally new commodity or equipment type or region if you're already doing well and have a carrier network that works well with those commodities .
I did this yesterday . So we've got a pretty large project over a long period of time where all of the material we're shipping is going to a specific type of project and all of those projects are managed by certain types of companies . Just to throw out an example , like let's just say it's like a construction site , right , if you know the construction site .
Or like use oil rigs . Like okay , my niche is shipping crane mats and pipe to oil rig companies , right ?
What I do is look exactly for what you said here's my company , put all the details in into ChatGBT and give me like a comprehensive list of companies that compete in the same commodity and service the same industries that are of similar size is where I always start . You can always go bigger and smaller , but I always start with what is working .
And then what I do is , like you need a piece of information to use in those calls to help speed up the trust , right ? So then what I would do is I would call , like the project managers for the oil companies the ones that are on site or managing the actual oil rigs and ask them hey , name , drop who I'm working with .
Hey , I'm shipping crane mats and pipe for ABC Pipe and XYZ Crane Mat Company to a bunch of sites out in West Texas . I know you guys are in that industry too . Just out of curiosity , could you point me in the right direction ?
Who handles like coordinating with your vendors when you guys need crane mats for your oil rigs and when you're getting new sites off the ground ? Those people don't get prospected much because they don't ship anything . Their vendors do . But you can call the people that are actually purchasing the stuff from your customer .
But you can call the people that are actually purchasing the stuff from your customer . They'll tell you who else they buy from . Then you get their name and their company name . Then you call the other companies in your niche , like the other Craymac companies in Texas , for instance , just to make one up and you go .
Hey , I was talking with Brian over at BP Oil . He manages a bunch , brian James . He runs a bunch of the oil projects out for BP in West Texas . He said he sources most of your crane mats from you guys . We ship a lot of the crane mats out to these other projects for XYZ Crane Mat Company .
Just out of curiosity , are you guys have any projects coming up ? This is something that might be a good fit , because we've got already carriers that are kind of lined up servicing that area . Now I've connected all of these dots and guess how quickly that conversation turns into something . Now they're like receptive they probably know that company .
If they don't know that person , they know . There's a small group of companies that put oil rigs up . They know who their competitors are when you name drop your shipping for their competitor and you're in contact with their customer . Now all of a sudden , in 30 seconds they start talking to you .
Now they're not going to give you a load in 30 seconds .
but now it's opening up like , oh , you know your shit , you know who the players are , you're in the mix . You kind of understand this industry . Here's what we're running into . We don't have any lanes right now , but we've got a big project coming up in a few months .
Reach to me in a few weeks and let's see if there's something that we might be able to line up . That's how you can like expedite that whole process from . I've got trucks in the area . Can I talk to who's in charge of shipping ?
To playing like expert level , to get directly to these people , name dropping who you need to to be able to get that conversation moving a hell of a lot faster .
Yeah and further , because I always like dig on the whole phrase . I have trucks in the area .
That's a way of of saying that without saying it , without saying it all right . One of the things I wanted to add real quick along those lines is uh , a lot of people forget to look up associations for those industries .
So , like for me , micah , the meat importers council of america right , that's an association most people don't know about , but that's where all my customers are , um , and not only do they give out articles on , like the industry , so you can learn more and have that expert level information when you go to prospect , but then you have a list of prospects as long
as you're updating those things . So when you're a prospect Trade show , associations , just trade associations in general .
Yeah , those are great and sometimes , like you know , people will email you and say hey , do you want this list of all these attendees at this conference ? I'll sell it to you for blah , blah , blah . You can usually find it for free online somewhere . So , yeah , good , good addition , all right . Our next question I got a load from a customer .
How do I find a truck ? Now I won't go too deep into this one , but some of your general carrier sourcing tools the obvious one for a new broker is the load boards . So , posting a , posting a load and
¶ Finding Carriers for Your Loads
you know , that way you can field some inbound calls . You can also search for posted trucks . The load board , I would say , should be your , your last resort , just based off the fact that you have limited information on them .
Building rapport and relationships with carriers over time is going to be your best bet , but again , if you're brand new , you're probably going to be using load boards . There's other tools as well . You can use any of the carrier sourcing tools , like Highway . You can source carriers that way .
Dat's directory will let you know fleet size , equipment type and their domicile location . People do it in our Facebook group literally all day long Any of the tools I'm missing ? I mean , there's a whole bunch of paid for capacity tools out there , but they're all marketplaces essentially . Is there anything that I'm missing there , ben ?
No , I mean there's like parades out there , fleetworks , rmis Highway , they all have some carrier sourcing feature . I mean you could also do it through Google .
Genlogs 2 is a great one , if you're a Genlogs customer .
Yeah , but I mean honestly , if it's like your first load from your customer , probably go to the load board because you probably have a limited amount of time , like that's where I would start .
Yep , all right . Next question as a broker , can I move Canada to Canada loads ? Yes , this question actually came up . Somebody asked me this earlier this week and it's interesting because I remember years ago I was like I don't think we can do that , and then I looked into it . I'm like , actually you can . The only limitation on it is Canadian carrier .
Yeah , cabotage laws .
¶ Cross-Border Shipping Rules Explained
So like you can't send an American carrier that's in Canada , well , first of all , you can't send them into Canada to haul a intrastate Canadian load . You need a Canadian only or a Canadian domiciled carrier that can do that , and that's all cabotage . Domiciled carrier that can do that , and that's all cabotage .
The same thing happens with , like , airlines , cruise lines and motor carriers . So it's all . It's all to prevent foreign . It's basically to prevent foreign labor from competing against the country's internal workforce . If I can you know , break it down ? Barney style is that . Would you explain it any other way ? Cabotage , how that works .
That's correct . I would make it even simpler . You can use the trucking company based in that country to move it in the country , pick up and delivery . If it goes to another country , it can only pick up or deliver , not both .
So Canada if it's a Canadian carrier , they can pick up and deliver in Canada , or pick up in Canada and deliver to the US , or pick up in US and deliver to Canada . A US company cannot run Canada to Canada and a Canadian company cannot run US to US . Same thing for Mexican carriers .
Yep , very good . Last question Can I move international loads With just a brokerage authority ? No , you can't do the import or export .
Same answer to the first question that we just answered is true Meaning like international to Canada and Mexico yes , to any other country , no .
Very true . Yes ,
¶ International Freight and Licensing Requirements
we have the USMCA where you can do cross-border stuff that way . But a question came up to me earlier this week . Someone wanted to import something from I think it was Sweden , and what I said is , when that container hits the US ports , the drayage moves and the inland repositioning or inland transit is where we come in as brokers .
But we cannot clear customs on and you know we can't do the import or export portion of it . What I ? I actually have someone at our company who is both an agent for our brokerage and he's an agent for a freight forwarder . So he is able to do both parts of it .
But the import and the export part of it and I think it's India to US , us to India that actual import leg or export leg does not run through our brokerage . It runs through his freight forwarding company that he works under their license . I had a guy in the past at another company who did the same thing .
He worked as an agent for a forwarder in New Jersey and a broker agent for a company in Buffalo and the domestic stuff ran through the brokerage . The international stuff ran through the forwarder , again with the exception of US , mexico , canada , again as a broker . We're not doing the customs clearance for that .
That shipper still is going to probably have a customs agent that's handling their paperwork and the clearance . But you can coordinate the truck for that case .
Yeah , you need a forwarding license or an NVOCC . There's two different licenses One is to move things domestically , like you said , and the other one is internationally . Your free brokerage license does not cover international .
Correct Good questions , keep sending them our way and we'll keep answering Final thoughts , ben .
Whether you believe you can or believe you can't , you're right .
And until next time go Bills .
