Trucking: Bid Process, shipping manager, trucking companies

Question
QUESTION: Dear Mr. Bowers,

Looking into getting my own contracts from shippers. Do shippers put out "bids" and trucking companies bid on them? If so where would they post that. Also, what is the best way to bid on contracts? Is it just the going rate for example: $1.42 a mile and that's it, you don't want to undercut and lose money on your hauls. I really can't find anything on my end of doing research. Thanks again for your time.

ANSWER: Manuel, large shippers with big volumes generally put their freight out for bid to their select list of approved carriers, often on an annual basis.  The trick is to get on their approved list which takes a sales effort.  Starting out you are better off contacting small and mid size shippers in the areas you want to haul and find out where they are having problems that you may be able to help with.  Some will be up front with you and tell you what they are paying in certain lanes and others will make you bid blind.  A good website to check on market rates is http://www.truckloadrate.com/  It's $30 a month but in addition to market rates it also has a load board.  You can't build your entire business on this but it's a good place to start and supplement other sources.  To find out who the shippers are in your area look for state guides to manufacturers.  If you know what company you are looking for this website is useful: http://www.thomasnet.com/
To grow your business you need to market, prospect, and sell value.  If you can get the business without a bid you are better off.  best of luck.



---------- FOLLOW-UP ----------

QUESTION: Dear Mr. Bowers,

Thanks again for your quick response. Regarding shippers from your previous answer who would be the decision maker or who would I need to call upon? Warehouse manager, shipping manager not only to get on the approved carrier list but to actually get the business from. As always thanks for your great advise.

Answer
This is part of that marketing, prospecting and sales effort. You just have to start asking and build your network.  If you are on the dock you can ask the shipping manager who majkes the routing decisions.  Or you can cold call the main office and ask for the person who purchases transportation.  Again at the larger companies you will find a more formalized process and probably a centralized transportation or logistics department that issues instructions to their local facilities.  In the smaller companies it may be the owner, president or a VP who handle multiple functions including transportation.  Sometimes you may need to ask several people in an organization before you get top the right person, but persistence often will pay off in the long run.  Good luck.