“The brokers make too much”

Please remember. It is all theory. Practically, trying to implement it, could indeed create a legal havoc and unforeseen repercussions. So maybe it is best to leave it alone the way it is.
However, I will not be convinced that the transparency, as an idea, is something wrong and harmful.

I don't want to go to regulating brokers commission cap discussion any more here because the very meaning of the commission cap is often misunderstood with regulating how much brokers can make in total. I can only imagine legal difficulties of trying to implement such a law too. I would not touch it for practical purposes.

 

ok I am gonna preface this by saying that yes there are some "bids" that are rigged. But my comments are about legit "bids." You do understand the reason why they have sealed bids for government construction jobs. Right? First to keep a crony from getting it. Second to keep Mega firms from underbidding start up firms. At a loss. Just to get joe start up out of business.

Broker loads are pretty much the same thing. Similar to a closed bid. Broker says I can get you a load for XXX.XX on both ends of the deal. To the shipper and the trucker. It is then up to the Shipper and Trucker to decided if they want to pay that much or be paid that much. respectively.

If you make the broker put out that for a 1350 load he/she's making 500. Well really it won't matter. Because then Mega Broker is gonna come in and say Shipper I can get that load out for you for only 1200.00. Thus you'll only have mega brokers and carriers. Thus the O/o will be stuck with the rates given. Because they'll work with each other to keep the rates at their benefit. Sorry Transparency won't work. Nor is it required. As was pointed out earlier. We don't ask Wal-Mart to tell us what they paid for that clock from China before we buy it. We buy it because the price is right for our needs. If the broker's price isn't right for your needs. Pass on it and get the next load.

 

There is a dog on a leash that licks some and bites others. I dont know which one i am so i want it to stay on the leash.

Thats my theory of government. The chance of a lick isnt worth the risk of a bite. I will do just fine with neither.

 

Cant beleive this horse is still breathing.

 

There is no possible way for you to know how many competitors you actually have.

Nothing controls a bidder better than inventing a competitor to outbid or underbid. You ever watch the mental state that comes over the shmucks at a live auction in a gridlock? Theyre so eager to win they bid it up to retail.

Well freight is the inverse and brokers are an auctioneer. Do i hear 900.. Ive got 9 how bout 875 875 going once going twice i got 875 do i hear 850

Then someone in the back yells 700 and the gavel drops. SOLD!! To the fool in the back who subsidizes freight shipments out of pocket thank you sir, ive got 60 more of these loads to move!

You would be much better off knowing your own costs per mile and what other profitable trucks charge on a lane, than to focus on what a broker makes.

A wise bidder goes to the auction saying i will not bid more than 60% of retail for an item or whatever he decides. And if he cant get it for less, he keeps his money in his pocket. The fool gets red cheeks, wins the high bid @90% retail, then remembers 10% auctioneer fee and 6% state tax on a used item with no warrantee.

Figure your costs and stand firm on your rate. If you take dollar freight you are now tied up for nothing when the $2 call comes in. Double burn.

 

What about $5/mi East and $1.5 to $2/mi back? Would that change your tune? lol

 

It wouldn't, this kid is like 20 years old, but already has his mind made up. Read my conversation with him starting at age 49, it's about the same exact topic
Some numbers for new O/O

 

That's getting there.