Just a note on the thinking that broker have little/no cost. Not all of us wait to be paid by the shipper before paying the carrier. The money for advances,quick pay,ect doesn't appear out of thin air. Not all of us factor/finance so all that comes from our pockets. The carriers that walk away from un-insurable claims we eat(because the customer keeps whatever they owe us for the claim)
I have trucks also so i know the costs for that. Just a little tiring to listen to the no costs for brokering.
Please Explain This To Me
Discussion in 'Freight Broker Forum' started by BookingYou19, Sep 25, 2013.
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Also, I have seen the inside of trucks before, my uncle has hauled lumber for a long time in MN, so I know what truck drivers go through, he has filled me in on how hard it can be, but also how much of a breeze it is as well. I have no more trouble covering a load than the next guy in tough markets, it is because I have built a good base of carriers, who I take care of and they take care of me. I am not going to go into the risks, they are equal, both have different things they need to pay for, you risk nothing more than me, only your upside seems a little better. You act like the product just ends up with me for free and then I charge you guys to haul and count my stacks. We have to buy the product first bud! So a click of a mouse is a lot more dangerous than the turn of a key. Huge bummer for that broker. Im glad he was able to scrape up some respect from you. -
it's not quite that black and white, for example, the difference between 40k lbs and 45k lbs is much more to me than 30 to 35. flat running or mountains, etc. and as always, our relationship comes into play.BookingYou19 Thanks this. -
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To me it looks like this.
Broker being paid say $1000. Plan is to payout carrier $900. Initial plan is to load to max gross weight. Carrier picks up load, finds it is half the weight, and how estimates the truck expense to be only $800 because of some fuel savings. The carrier now accepts to haul it for $800 so he takes the same after expenses? So the broker then takes 20% instead of 10%?? Who has the larger variable expenses?? -
Yeah, now that's a "Road Trip". LOL Did I mention that we still had several hours driving to do to get to our destination? All I wanted to do was stop and collect my thoughts, but hubby kept going, as I'm shaking like a leaf from the whole ordeal.
What would have happened if he'd rolled that thing in front of us? He basically was using us as a shield to keep out of the LEO's eye shot.
You have no idea what these guys see everyday from their windshields, and how many of these "close calls" happen in just a weeks time for them, and they keep their cool, react to protect the public, themselves, the equipment and also the load and still manage to keep going as if nothing really happened.
Honestly, I couldn't do it.RedForeman Thanks this. -
Doing these tit-for-tat rebuttals isn't my usual style, but this thread got my interest.
Driver is just part of the job, typically the easiest. The point wasn't just having to take care of personal business in a sub-human manner. More about having to suffer that daily while running a business. It's very easy for you to draw a comparison to camping. Try actually doing it for days on end, then get back to us.
So why are you paying for all that? Are you just generous? Or are you having trouble doing the follow up? I can imagine some of that is taking the lower cost option. For example just paying for a $50 case of product versus spending the time making a dozen phone calls and filing reports that would consume a lot more than $50 of your time.
On the other hand, if you're paying detention and layovers that you don't get from your customers, is that a cost you endure to buy the business? In other words, is this something you recoup via a higher rate or volume (embedded cost) versus having it out there as a line item that is collected and passed through?
I guess what I'm trying to get at is: are these costs avoidable or planned? I would never expect someone to be stupid enough to just pay it out, no more than I would expect myself to just run a load for free.
The paragraph about chair breakdowns was only making the point that there are some not-so-easy and very cashflow intensive things about operating a truck that someone who's never experienced them first hand would ever have a clue about. If all you've done is register and insure your private auto and drive it to and from an office, that's all you have to go on. I get that.
Before getting into trucking, I had some experience around commercial equipment as well as a mechanical background. I only thought I had a clue. It's on a whole 'nuther level than a personal car, or even construction equipment. Until you have to go through the daily setbacks involved, law enforcement hassles, and stand at the cashier window paying a bill that turned out thousands more than you imagined it could be, you have no idea.
My points were that the job of brokering is less cash intensive on a day-to-day basis (not overall, as I already stated) and required less sacrifice of personal amenities or dignity. When I have a problem, I try not to put you (my customer) in a bind and respect the job you do. I only ask that you do the same when you come to me with changes.
All that said, the best brokers I deal with were either in trucking at one time, or are currently also carriers running their own trucks. With them, there is no doubt they understand what it takes to deliver the load and always meet me halfway.
What I'd challenge you to do would be to take a week on the road with your best owner operator carrier, if you can stand each other for that long. Get a taste for running your business over a cell phone and limited mobile wifi, in an office that is a little bigger than a refrigerator box and is moving at random times. I think you may learn a few things that would empower your own business by a large margin. Or maybe end up chopped into pieces and stuffed into random garbage cans in five states LOL.bullhaulerswife and barnmonkey Thank this. -
OK dont take it too far. No one is going to call for cheaper fuel. But if you dont think you should give up money for ti coming n grossly underweight, dont expect money when it comes in over weight. Why would someone be willing to deal with you if you arent willing to deal with them? -
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PS: Kudos for staying active on the forum and following up on your thread as you have. Whether we admit it or not, the insight is valuable. Don't take it too personal and vanish as many others before you have.
BookingYou19 Thanks this.
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