Government regulates everything else time to regulate rates.

No one is forcing you to do anything against your will that is true.

If you are going to tell me that there are no brokers anywhere that Have taken advantage of carriers because they have no idea what the real rate is that is very unrealistic.

It's funny because new car sales really don't make dealers a whole lot of money. That's because it's very easy to go from dealer to dealer to dealer and have them actually compete for your business and it's very easy to tell what it cost them on a brand new car that is the same.

Used cars are where the dealers make all their money. When you see the dealer that has 5 dealerships on 75 acres of ground in the most expensive commercial area that's a guy that has sold a lot of used cars.

They make that amount of money on the used cars because you don't know what they paid for them and you can't compare one used car exactly perfectly against another.

Same with brokers. They make all their money because you don't know what it is that they're getting for that load.

So I guess if you were going to spend $10000 on a car and you found out that the dealer bought it for 2000 you'd be happy to pay that right?

If anyone said they were happy to pay that they'd be out of their mind. What if they don't know what the dealer paid- they happily fork it over and the dealer goes and buys another yacht.

Brokers are the same thing except that when you buy a car you buy it for pleasure or for whatever.

If you use brokers exclusively that is the way you earn every penny you make. Yet the brokers and dealers make their money the exact same way- Taking advantage of blind sales.

Ironically the brokers, just like the dealers that sell used cars are making massive and massive and massive amounts of money.

It is not by accident that the CEO of CHR made 8.6 million dollars himself individually without accounting whatsoever for profit for the company.

The used car dealers would be proud of him.

 

So say you get your way, brokers have to tell you how much they're making on the load, what then, you think they're going to pay you a larger percentage of what they're getting just because you know what they're getting? You'll still have brokers "taking advantage" of new owners because they'll be unaware of them having to disclose their pay.
You'll still have people taking cheap freight just to get moving. In fact they might decide to take a bigger cut because they've got the real risk of you knowing what exactly you can get out their customers, now you're making less money.

 

Well I'm not here to argue with anyone. I just don't see it that way.

If it was something federally mandated that all brokers had to be transparent every motor Carrier even new ones would know that.

It's best to know exactly what you're negotiating on to be in the best position to negotiate. I really would think that's common sense.

It would not be up to the brokers how much of a commission that they keep.

It would really come down to the free market finding its balance to where that would be.

Now don't get me wrong I'm sure there are carriers that are not too bright that for whatever reason would not negotiate well.

But I think for most people the common sense of knowing that a load was not double brokered and of knowing with the real rate is would seriously help negotiations.

On top of that I had a broker a little while ago tell me some of their customers only pay $35 an hour for detention. That's something that I laugh at.

Yet if it was mandatory that the brokers disclosed what the detention is and what the truck ordered not used is they would make the negotiations much easier.

Because not only do the brokers make money on the freight they make money on the detention and I'm sure even on the truck ordered not used.

 

It would still be just as much up to the brokers how much they keep, apparently people are incapable of turning down loads that don't pay now how is that going to change just because they know what the broker is making?

 

So you are fine showing the broker all your costs? After all transparent negotiating requires everyone to be transparent.

 

Hell, let's just go with the U-ship model. Broker puts out the absolute highest amount they will pay and carriers undercut each other, building animosity over time, until all the lowest bidders eliminate themselves through bankruptcy. Each load will only go from point of origin to one broker and on to the lowest bid carrier. There can and will be competing brokers but, again, the shipper will only use the lowest bid and only one broker will be allowed to look for a carrier. Loads that go to crap locations will eventually pay more and the gravy will eventually pay less.

Would that be transparent and free-market enough for you?

 

Why should I or anyone care what the dealer pays for a used car? It would never even enter my mind.

I am looking for a used car, I know how much I want to pay, what I can afford, and I find the car I want on the car lot, and I buy it. If I don't like the price, I try to negotiate a better price. If they won't come to a price we agree on, I move on to another one.

What difference would it make how much they paid for it? I wouldn't care if they got it for free.

Do you shop for your groceries this way? Wondering how much they paid for that head of lettuce you just purchased? You either think the price is fare, or not. If it's not, move on.

Same with rates.

Don't like it? Negotiate a better rate, or move on.

Why concern yourself with what others are making?

 

A car is a luxury purchase.

What you make in your income is your everyday daily income that pays for your survival.

Big difference.

 

For some it may not change.

But if anyone that really runs a business is going to Gross a $1000 on a load and pay fuel and tolls and insurance and everything else and you see the broker is making 1500 or 2000 if Anyone is OK with that well I Think that it is time for a mental check up.

 

That is not even remotely what I said.