Becoming a freight broker is an easy and relatively inexpensive way to start a business. From there, however, you are faced with a steep learning curve, stiff industry competition, and thin margins—a perfect storm for two-thirds of new brokers who fail in their first year. But not all is bleak.
Assuming you have registered with the FMCSA, secured a surety bond or trust, and established the legal structure for your business – the road to success still lies ahead. To help you along the way, we have put together these seven tips for becoming a successful freight broker.
How to become a successful freight broker?
As you know, Freight Dispatch Company in USA charge more than the cost of the truck. This is the margin they use to run their business and make money. This margin is usually 18%. However, spreads may vary by market.
However, if you follow the tips in this article, you will have the best chance of success. Remember, not everyone is cut out to be a freight broker, so “learn before you learn” and learn about the industry and the jobs before starting your own business.
Prioritize Relationships
Untested brokers must develop a certain level of trust with their clients. It is challenging because building these relationships takes time and requires strong communication skills, but the rewards are worth it. This is your classic pose. Once you have approached a client, keep the door open and increase their trust by communicating promptly and being honest and delivering consistent results.
Your clients will measure your reliability as a broker by your ability to consistently get their goods from point A to point B on time and at the best price. In short, it is the cornerstone of your business. They directly affect how successful you are, so prioritize relationships with them and look for those excellent opportunities that miss them.
To get started, start by calling a salesperson at a material handling company, forklift company, etc., and ask:
What is the media important to them?
- What can you do to get more opportunities with their company?
- Can you cite their next article?
- Most importantly, once a prospect agrees to use your brokerage to ship their goods, be ready to deliver.
Tip 2 – Respond Quickly
Freight forwarding is a fast-paced industry and people are busy, so please respect their time. When you receive a request for an estimate, please use the same medium (phone, email, etc.) to respond as quickly as possible with a reasonable estimate. Remember, you are not the only broker they are sending requests to.
When replying, keep it short. The customer starts by searching for football stadium numbers. You can learn more about it later – once you have locked it down.
Prompt customer service demonstrates your reliability and willingness to get the job done while showing that you respect their time and business.
Tip 3 – Get a complete picture of your freight broker’s costs
Time is of the essence in this business, and the faster you can get a quote from a potential client, the more you can book them and the less chance of cutting your revenue into a bad call.
Gaining industry experience before becoming a broker is helpful, but not required, if you understand the costs inside and out.
Tip 4 – Learn something new every day
The more knowledge you provide, the more likely your customers will trust you with their needs. It is a huge, fast-paced industry. The more you know, the faster you can provide high-quality estimates – giving you more opportunities to book leads and increase your profits.
Remember; you are not only a broker, but also a salesperson, negotiator, and communicator. Make sure to hone these skills by reading books and articles and checking our blog from time to time to absorb every bit of knowledge you can acquire. You’ll find it easier to develop and hone your competitive advantage, which will better position you for success.
