“The brokers make too much”

Maybe there is a certain misconception as to what the brokers need to be regulated for. I dont think nor say that their profits need to be capped. Their cut per load needs to be capped.
Yeah, for some 15% is not fair, for others 50% is not fair, but I do know, at least intuitively, that running below costs is also not fair.

Yeah, nobody is telling you to take that freight or be in this business but somehow I have a feeling that all of those who say that, with their customers or not and, at least for now, secured gigs, started to feel heat under their feet on the account of possibly losing their business, would change their tone quickly. They would also look for fairness.
Such as human nature.

 

65% of the load sounds like a great deal.

https://m.facebook.com/story.php?story_fbid=4317857671573202&id=100000470347965

 

Indeed, maybe I missed my calling. Perhaps, had it not been for celibate, I should have become a catholic priest, but I could not possibly feel good about myself, if I were a broker, giving a truck owner operator a load that pays 1 buck per mile. That's just not for me.

 

ya a slap on the wrist isn’t really making it illegal.

would you be against having brokers registering like a clearinghouse type site? So if they get busted for double brokering they are now marked for life as a bad broker?

How about a state licensing system for brokers?

would any of these suggestions be a problem?

 

Lets say a broker has 10 loads a day, Mon thru Fri that pays 2k each. Lets say the broker is only taking 15% for themselves. That's 3k a day, 15k a week, 780k gross a year. Now how many guys behind the wheel are doing this?

A broker can make #### good money and not have to be a leach. Not saying that all of them are leaches. I still talk to my buddies out in Salinas that are #### good brokers for Publix. I've also got a family member that does it and they can hold their head high.

For most people that drive trucks. Someone is trying to limit what they can make. HoS is limiting drivers from what they can make. Trucking companies are limiting company drivers miles and CPM they can make. Guys leased onto carriers are being limited to what they can make. Brokers are limiting what O/O can make by not being truthful of the rate and their actual take.

Yes, the ultimate goal is to have contracts, but until then you work your way up the ranks. You shouldn't have to be paid like a worthless SOB in the meantime. Drivers are the ones putting in the work, footing all the big bills to accomplish this. They should be paid like so for all that.

 

That's crazy right there.

 

Here’s how broker commissions work on average, now there are other ways but mainly it’s this.

remember % May very.

the ones I know are on a 60/40 split with the firm, they get the 60 firm gets the 40.

now they are exceptions to the rule as some places I know do 75/25 in favor of the firm and and any other combinations in favor of the firm.

some firms do straight up hourly with commissions but with quotas to meet.

it’s basically a sales position, get the most form the shipper pay the least to the carrier.

take for example using the math provided in the link in the above post where the broker says they keep 65% and pay 35% to carrier.

the commission structure we will use is:

60/40 split in favor of firm.

$1000 load was given to carrier for $350

Firm makes $650 and splits it with with the broker.

Broker gets paid $260 on the load.

Do 3 a day and your pulling about 3.9k a week.

but wait what if we throw in a double broker? This complicates things but broker makes more with double broker. How?

do same math.

$1000 load given to double broker for $600 , the reason is the original broker will get a kick back from double broker, let’s say $125,

so original firm now makes $400 splits it with broker $160


Now the kick back at $125 from double broker puts him at $285 compared to the original $260.

3 a day puts hit at around 4.3k a week.

an extra 400 and multiply that by 52 comes to about 20k cash tax free.

now multiply this on a higher paying loads and you will see why it pays for brokers to double broker loads just to make more.

 

If it takes for them to be successful by ripping people off,1 dol per mil style, while keeping other half for themselves , then in my book, they are not much better than the "Marchant of Venice" by Shakespeare. I have no chance to compete with people like that. Greed is not in my blood.
Such businesses are of no interests to me.

It does not hurt to show them a path towards redemption. That is human decency.
Amen.
P.S
Granted.
I know that not all the brokers are like that.
Very good brokers are out there and blessed are those who found them.