“The brokers make too much”

Discussion in 'Ask An Owner Operator' started by Long FLD, Apr 24, 2020.

  1. 062

    062 Road Train Member

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    No on a business side of things. This isn’t a personal deal, it’s a business deal. Leave the butt hurt feelings of someone getting over on you out of it. If you feel compelled to take a load for less than what you feel is a good rate, then you need to figure out why you’re doing it.
     
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  3. TallJoe

    TallJoe Road Train Member

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    You asked him a specific question of why he thought it was all right to get $1600 if he could take it for $900.
    A valid question it was but it should be between the shipper and the carrier to decide.

    Ideally, a broker should step aside and wait for them to agree on a price. At the end of the transaction, the broker gets his cut.

    Since the carrier and the shipper don't talk, the broker role is rather to relay the negotiation than do it on their own, leaving the carrier out of the loop.
     
  4. longhaultransport

    longhaultransport Light Load Member

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    This whole transparency thing sounds ridiculous.

    How is knowing the profit a broker gets going to change anything?

    You either take the load at the posted rate, try to get a better rate, or move on.

    If driver A will haul it for X, why would he give the load to driver B at a rate higher than X?

    Knowing how much profit he is going to make changes nothing. The rate is set by the O/O

    You want someone (the government) to force them to pay you more? Good luck with that.
     
  5. TallJoe

    TallJoe Road Train Member

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    At least, it would put the stop to those mis aimed protests.
    Only fools would protest about supply and demand.
    Brokers, if honest, would be happy too. Nobody would call them scumbags any more.
     
  6. 062

    062 Road Train Member

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    I don’t know what your personal experience is with brokers, but the ones I’ve done business with bid on the freight. They sell their services to the shipper by saying that I can cover X amount of loads on this lane. Most of the the time it’s a flat rate. Brokers are not negotiating with the shipper on every load.
     
  7. Long FLD

    Long FLD Road Train Member

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    And if the shippers wanted to deal with thousands of truckers they’d cut out the brokers and save on their shipping costs. Part of what they’re paying the brokers for is the convenience of knowing their loads will get moved without it being a hassle for them.
     
  8. TallJoe

    TallJoe Road Train Member

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    Why do you say he did it out of his ignorance?
    He did it because there was 10 other truckers ready to take it for $950 and had he waited longer, he would have gotten nothing.
    What would wisdom, the opposite of ignorance, help here?
    If I were to book loads based on my wishy profit margin numbers, I would be at home since Chrstmas.
     
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  9. TallJoe

    TallJoe Road Train Member

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    I know how it works in real life. I am not trying to argue that.
    We, in this thread, are discussing possible solutions. Possible fixes. Options.
    I just stated what my view of a perfect broker would be.
    No more, no less.
     
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  10. Long FLD

    Long FLD Road Train Member

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    So how is someone choosing to do it for $900 the broker’s fault? If there were 10 trucks like in your example the broker could start at $1600 and those 10 guys would lowball each other until someone finally stepped out and wouldn’t go any lower.
     
  11. TallJoe

    TallJoe Road Train Member

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    In this thread, I argued about the brokers greed and overstepping their role, then possible fixes for that. I never said that it was the brokers fault that there is too little freight and too many trucks.
    In other words, I am not the guy with a sign "No more chep pallets".
    I might be the guy with a sign. "Brokers, stop stealing!", if I must be the protester.
     
    Last edited: May 5, 2020
    062 Thanks this.
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