Let’s cut right to it:
The #1 mistake dispatchers make—negotiating rates with brokers.
Let me explain...
Sure, getting a higher rate feels like a win, but here’s the truth: focusing only on rate negotiations isn’t going to make a big difference.
The real secret? Positioning your carriers in hot markets—that’s where 90% of your revenue comes from. Negotiations? They only account for about 10%.
So, how do you start positioning your carriers and ensure you’re capturing that 90%? It comes down to a few key steps:
Step 1: Understand the CPM (Cost Per Mile)
- Before you negotiate any rate, you must know your carrier’s CPM.
- Access the Trucker Calculator software to track revenue, manage expenses, and calculate your carriers’ CPM. Click here to access the Trucker Calculator →
- Input all expenses: fuel, insurance, maintenance, driver pay, etc.
This number is your baseline—anything above this is profit.
Without knowing your CPM, you could be taking loads that barely cover costs, or worse, running at a loss.
Step 2: Negotiate Beyond the Rate
It’s not just about the rate—look at everything surrounding the load.
Ask these questions:
- Is there detention pay?
- What about layover fees?
- What type of product are you hauling?
- What’s the deadhead distance?
- Is the shipper/receiver consistently late to load or unload?
Details like these impact your bottom line just as much as the rate itself.
Step 3: Position Your Carriers in Hot Markets
This is where the real money is made—90% of your revenue comes from placing your carriers in hot markets. And here’s how you do it effectively:
- Use DAT Market Conditions to identify where demand for trucks is highest.
- Focus on the Hot Market Map, which shows areas with strong load-to-truck ratios. This tells you which regions have more loads than trucks, meaning better rates and more opportunities for your carriers.
- Look for trends over time and note any shifts in market demand—this allows you to proactively position your carriers before these markets cool off.
- Pay attention to upcoming seasonal trends, where certain regions may see spikes in freight demand based on the time of year or industry events.
Once you identify these hot markets, consistently position your carriers there to take advantage of
higher-paying loads and steady work. This strategy will drive the majority of your success, far more than any individual rate negotiation ever could.
Of course, this is just one small piece of the puzzle...
If you want a personalized roadmap to build a profitable truck dispatching business and secure your first carrier within 30 days, I’m offering a FREE 1-on-1 Dispatch Coaching call with my Dispatch Specialists.
These spots are limited, so don’t wait.
To your success.
- Gurpreet Gill
P.S. Book your call now and comment "I Booked" once you’ve scheduled it. We might have a little gift waiting for you 🎁.