Counter-offer calculator

How it is calculated

1. Walk-away minimum = (loaded miles + deadhead miles) x your cost per mile. Below this, the load costs you money.
2. Target = walk-away x (1 + your margin).
3. Target loaded RPM = target / loaded miles, the number to compare with the post.

Worked example

COUNTER-OFFERNO. 0061

EXAMPLE

500 loaded + 60 empty

560 mi

x $1.90 cost per mile

$1,064

+ 20% margin

$1,277

Target loaded RPM

$2.55

Ask for$1,277

The post says $1,100. That's above the walk-away but under the target. Counter at about $1,350, so meeting halfway still lands near the target. If the broker won't go above $1,064, pass. Every call after that is easier, because you already know your number and don't have to work it out under pressure.

How to negotiate freight rates: the call

1. Confirm the details first. Weight, dimensions, pickup and delivery windows, stops and detention terms. Surprises after you agree cost you.
2. Ask what it pays. Let the broker name a number.
3. Counter with a reason. "I'm 60 miles out and it's 44,000 lb. I can do it at $1,350."
4. Hold your walk-away. If they can't meet it, thank them and move on.
5. Get it in writing. The rate confirmation must show the agreed rate and terms before you dispatch.

Word-for-word scripts are in hotshot rate negotiation scripts.

Good and bad results

If your target RPM is far above what your lanes pay, your cost per mile or margin may be off, or your lanes may be the problem. If it's well below posted rates, you have room to push harder. Either way, the walk-away line stops the worst habit in trucking: taking a cheap load to avoid sitting.

Negotiating freight rates every load

Negotiating takes time on every load, often several calls. Rates in the market move daily, so last week's number doesn't always hold. Check what your lane pays with the rate per mile calculator, and compare with the hotshot rate calculator if you run a hotshot.

Mistakes that cost money on the call

• Naming your number first. Let the broker go first when you can.
• Countering without a reason. A reason makes the counter easier to accept.
• Forgetting accessorials. Detention, layover, extra stops and tarping should be agreed on the call, not argued about later.
• Agreeing before checking the broker. Credit and days to pay matter as much as the rate.
• Taking a cheap load out of fear. Sitting one more hour for a load at your target often beats a full day at a loss.

A dispatcher who counters

We counter every load against your floor and your target, and we pass on loads that won't meet it. You see the final rate before you say yes, and the broker sends the rate confirmation straight to you. See hotshot dispatch or any of our equipment pages.