Small carriers and contractors negotiate freight rates differently than major carriers. Smaller carriers feel larger carriers have more bargaining leverage when negotiating freight prices.

Large freight companies have many resources to make smart judgments. Most large carriers have a pricing department, shipper and freight broker ties, market data, and can refuse freight. Big freight carriers (those with more than 10 vehicles) have tremendous negotiating power, although they’re only 75% of the market. Use these RFP strategies to compete with major freight carriers.

Know your costs. Costs affect pricing. Gas, taxes, insurance, office expenses, default or factoring fees, and more Know your costs to make competitive pricing. Beware of fuel’s influence on your business. To estimate costs, divide your annual spending by the number of kilometers travelled.

Service-oriented Be careful while seeking freight accounts. Don’t keep a bad account. Both need a good relationship. Reduce late or hard-to-manage accounts. This ensures your accounts send freight. Tell shippers your pricing policies and profit margins.

Trustworthy Always satisfy customers. Exceeding expectations may help you develop a positive reputation, which can help your firm expand and gain trust. Freight shippers or 3PLs may use smaller carriers for shipment. You may be able to offer specialized services as a small freight company. Pay the driver and transportation firm if a small carrier provides extra services.

Refuse money-losing freight. Understand your expenses, but make sure you can deny money-losing freight shipments. Successful freight companies reject money-losing cargo.