What Is A Fair Cut For The Broker?

Discussion in 'Ask An Owner Operator' started by Renegade92, Jan 7, 2023.

  1. Renegade92

    Renegade92 Light Load Member

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    More like 10% vs 13.6%. I think the point he was trying to make, is that the smaller the broker's cut, the better.
     
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  3. gokiddogo

    gokiddogo Road Train Member

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    I'll try it again..

    I'd be even happier to do the load for 495 if the broker charges the customer 500.

    Are we catching on yet
    T=$ broker pays truck
    C=$ customer pays broker
    T 900 C 1000
    T 950 C 1100
    T 495 C 500
    All 40,000 from 123 fake street to 456 easy street
    Which one are you choosing and why?
     
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  4. Banker

    Banker Road Train Member

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    As long as I don’t let others see or have a say in my profit margins, I don’t expect to see or have a say in others profit margins. I know what I need/want to haul a certain lane for and I won’t haul it for less than that. What the load costs the customer is not my concern. What it profits me is my concern. You may have a different opinion and that is your right.
     
  5. Banker

    Banker Road Train Member

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    How is it different? Not trying to be a dick, just curious how it is different. We all may have slightly different business models, freight, rates and so forth, but profit should be all of our’s number 1 goal if we are successful long term.
     
  6. Siinman

    Siinman Road Train Member

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    Agreed I could care less what anyone else makes. I just need to be able to hit my numbers or more. No reason to care what anyone else makes or loses. Had conversation with one of my brokers a while ago about this. He said he wins more then he loses and that is all he cares about as well. have to keep the doors open and make it worth while just like any business owner should be doing.
     
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  7. Banker

    Banker Road Train Member

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    Every business has “Ebb and Flow”. Those that don’t save and plan during the good times aren’t going to be prepared for the bad times. Both good and bad times are always coming eventually, we don’t know exactly when or for how long. I don’t remember hearing spot market hauling owner ops complain when a load of toilet paper was paying KRAZY MONEY. Surely they didn’t think that was how loads of toilet paper always pay.
     
    Last edited: Jan 8, 2023
  8. GreenPete359

    GreenPete359 Road Train Member

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    I have never utilized a broker as an O/O with the exception of my short stint with Landstarve.

    I and many other o/o’s in my area are able to secure work for our single truck company’s. We all pull the same freight for the most part. I have customers who have tried using a broker in the past to consolidate things. They all say the same thing, it was a nightmare. You never know if the the truck will show up early (freight not ready), late, or not at all. Drivers who don’t speak english, litter on their property, cause property damage because they don’t know how to drive, are ignorant & hard to deal with, are unkempt, etc…

    These customers will use a broker to ship out farther than they can cover rate wise for us to run. For arguments sake say over 500 miles, or when they have overflow more than what they can cover with the local trucks. Otherwise they are happy to have the same faces providing a known service where they have no worries about damages, late delivery’s, or upset customers.

    you have to be reliable and have work ethic tho. There is no telling a customer you’re not available because you want to lounge around the house on a Tuesday.
     
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  9. Renegade92

    Renegade92 Light Load Member

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    Texas
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    Can you please re-explain the following: "These customers will use a broker to ship out farther than they can cover rate wise for us to run.".

    Are you saying that for the longer runs, these customers can't afford you? Your mileage rate tends to be more than they would pay for a broker to handle it?
     
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