Negotiating better rates for pricing LTL (or Less Than Truckload) cargo shipments can be tricky. It can also be the difference between a supplier choosing you or choosing your competitor instead. In business, negotiating skills really matter.
Here’s how you can negotiate better rates for calculating LTL pricing.
LTL Pricing: Negotiating Better Rates
It’s About Market Research
As a business owner, you should get used to doing the right amount of market research before you make any important move or vital decision within your business – and this especially includes negotiating your rates. See what your competitors are charging; you don’t want to aim too high or too low than the market average.
Ask the Right Questions
It’s vital to ask the right questions when you’re negotiating better rates.
- Find out what your supplier is paying their current carrier; or, offer the suppliers that have already signed contracts with you a discount – this can keep loyal customers coming back to your business.
- Find out how much your supplier currently needs to ship, and ask them if their current supplier is meeting their needs; a supplier will usually be quick to let you know if there’s anything your company can do for them that anyone else’s isn’t.
There are several factors that go into calculating LTL cargo rates, and you should consider these when negotiating your rates.
The cargo’s classification (scored from 50 to 500) usually has an impact on the overall price of the cargo; the amount of liability that comes with carrying the cargo should also factor into your rates – and you should have insurance for this (you can also sometimes offer cheaper rates if you change your insurance plan).
LTL pricing is also usually calculated by density – that is, how many cubic feet the shipment will take up. This takes some math, but it makes working out a quote much easier. You’ll also want to consider the distance you will travel for the cargo.
The Junction LLC
As a leader in the transportation industry, we demand excellence from our entire team. Our team at The Junction LLC strives to deliver the best possible customer service and is driven by a desire to solve our customer’s toughest transportation and supply chain needs.
Our team is dedicated to serving our customers and will take the necessary action to deliver our customers’ products safely, efficiently, and on-time. This is our promise to you!
Nationwide Services include:
Trucking & Freight Shipping Services:
- Time sensitive shipments
- LTL (Less-Than-Truckload)
- FTL (Full Truckload)
- Flatbed LTLRGN (removable goose neck lowboy)
- RGN (removable goose neck lowboy)
- Maxi’s / A-Train / B-Train
- Heavy Haul
- Over Dimensional
- Dry Van
- Dry Van LTL
- Refrigerated LTL
- Power Only
- Our sister companies can also provide warehousing in our food grade facilities, cross-docking, and contract warehousing.