It’s an interesting question for any high growth freight brokerage. It’s also a fun question to speculate on whenever and wherever you’re talking shop.
Where are the growth plateaus or milestones? The points when brokerages face the reality that what got them this far won’t be enough firepower to get to the next milestone.
A good rule of thumb for these milestones are when revenue doubles. Let’s say $10m, $25m, $50, $100m, and then beyond. The game changes at each of these points and high growth brokerages realize this.
Looking at the data, the inflection point for seriously considering buying or building another TMS is pretty clear. Only 7% of brokerages under $50m run a proprietary TMS. This triples though for brokerages between $50m and $100m.
What does all this mean for your sales strategy?
Mid-cap ($50m to $100m annual gross revenue) freight brokerages are prime buyers of new tech. They’ve most likely outgrown their tech solutions and are feeling intense pain as customers and prospects demand more capabilities.
This means the sales cycle for these brokerages shorten as they are open to switching sooner rater than later.
It’s all about flexibility. Buying or building is an important question. 75% opt for buying though and are looking for solutions that will carry them to $100m, $200m, or as higher. Growth at this level hurts and most will likely not want to upgrade any tech again for a long, long time.
So, make sure you’re positioning your tech for the long haul. Stop-gap solutions will be a tough sell for this segment.
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As a reminder these are just some of the searches you can perform to find and close your next massive deal!
Keyword Search
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Tech stack for each freight brokerage including:
TMS, Visibility Tools, Quick Pay Terms and Vendor, Rates/Pricing Tools, Onboarding, and more!
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