Ok first let me be up front about who I am, I am a " broker" for a 3pl. I do not like the way things are done in this industry, to much dishonesty on all sides. There are alot of brokers who should be paying drivers more but are not. ( a 450$ profit on a load is complete greed in my opinion unless it is a very special situation) There are alot of drivers who could run for a lot less ( I had to pay some chicago russian driver 1900 to run a dry load from chicago to cedar falls ia 300 miles, because he knew i was in a bind and was desperate. ( lets keep in mind the shipper was only paying 450$ because " price is all that matters" so i wont be seeing a paycheck next week due to BGD transportations wonderful ethics. My point is this, this entire industry is a cluster of dishonesty in my opinion , I want to do something that I havent seen done ( maybe some brokers do it i dont know im only a year into this) I want to be transparent with everything, I want the drivers to see what I bill my customers and my customers to know the drivers pay and my cut of it, I would do this by having charging the same price for every load. an example, for every 500 miles ( or days worth of driving) on top of the truck rate wich i will bill on the market rate wich in my opinion should never be less than 1.50 a mile anywhere. my service fee is $150, $200 for Reefer loads ( of course I only take home 25% percent of that so i make either 25 or 50 dollrs a load. My goal is volume, if i move 30 loads a week after taxes ill make 50k aa year wich is fine considering i grew up in a foster home with nothing i dont need to be rich. My customers would be billed the truck rate and my fee seperatly and drivers would see the full rate as well. Could something like this be done or would I just get backdoored? Yes this is being posted in multiple sections, I want as many opinions as possible.
I need drivers opinions on something please thake the time to read
Discussion in 'Questions To Truckers From The General Public' started by infj1986, Jun 4, 2010.
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You'd get undercut by other brokers but if you keep going with it, you'd get companies and drivers that trusted you and would call you first for loads. As long as you've got something to move and pay a decent rate for it, someone will jump on it.
simplyred1962 Thanks this. -
yeah I figure on some loads Ill get undercut by cheap brokers however the customer base Im going for are shippers who have alot of product they need to ship, need it done smoothly and do not have the time to search for a truck that is a few dollars cheaper. If thats is the way they runthings let them pit the cheap greedy brokers against each other like dogs over meat. Im paying trucks what they are worth and my profit is no secret to either party. It would seem that if a shipper wants stability and simplicity this would be a great system...Im surprised 50 people have read this and only 1 responded
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Basically I need some advice on how to do this, what are fair rates in certain areas to trucks ( within reason)
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You would have to figure out how much it really costs per mile to run the truck.This includes truck payment, insurance, permits and registrations, fuel, maintenance, etc. What the average miles run per truck each week, break down the average per mile your load is paying and then find out how much a driver would need to net after all expenses to make it worth his or her while. And be sure to figure in how long the driver will have to sit under that load before the consignee will take it. Time is money to us. Then from there, you will be able to figure a fair price for the freight. It's complicated. Some o/o's are happy with $1.50/mile including fuel because their truck is paid off. Others will need more money because they have that payment.
Regarding region, look at how much fuel costs in the region you are considering, road taxes and whether there is available parking for the truck...and whether the truck stop charges to park. Most of us know you can get a really good rate going into a crappy area like New York or Florida, but it will be balanced out by a crappy rate coming out. The name of the game is to earn money. If the driver or o/o isn't earning anything for him or her self, they can't run their business any more than you can if you give away the farm. It will take some time and experience to determine what the fair rate will be for any given load.
Good luck to you. -
The fact that you are willing to see things from the drivers perspective is commendable. I am replying from a trucking company point of view. $1.50 backhaul is almost unheard of unless it averages out that way on a short haul (minimum charge). I have noticed broker rates increasing over the last couple of months. We are seeing averages of $1.20 to $1.30 per mile. These rates vary depending on regions. A standard rate would be great since our operating costs are roughly the same no matter what part of the country we are running in but you can still expect cheaper rates from the East Coast back south and of course out of Florida. That is why most carriers know they must get a fair headhaul rate to accomodate the cheaper backhaul rate. I like your business plan and wish you success.
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I appreciate the response Harvester, I am somewhat new to this Industry ( 1 year) although I have 3 relatives who are drivers who I am very close with so I learned alot from theyre perspective, I took a job as a broker because I had to feed myself, it offered a liveable salary so I took it, since then I have been shocked at how much dishonesty there is in this trade, I feel like creating a transparent rate system could really work well if I could figure out average rates that would satisfy the majority of shippers as well as drivers. If I can figure this out I would start doing it immediatly.It guarantees the shipper that theyre will always be a truck available, and it pays the drivers a fair amount, Unlike most backhauls.
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as an example, right now I have a customer who wants loads from Orlando FL into Chicago, IL. Dry vans Only. I feel like this is a perfect opportunity to do something like this, but as crazy as fl rates are I have no clue what a truly fair rpm would be
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One thing that a broker may or may not be able to do is eliminate the term backhaul from this industry completely.
A load is a load and must get from point A to point B regardless of where those points are. There should be no difference in the rate simply because it's in one region or another. The only exception should be for things such as tolls, fuel prices, etc.
Just because my truck crosses into another region of the country doesn't make it any cheaper to run per mile.Chain Drive Thanks this. -
I don't see any reason to even let a broker know you're trying to get a backhaul. They have no business knowing where you live or where you want to go.
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