Brokerage Opportunity

Ok, you had an idea, and that's to be commended, I don't ever criticize just for the sake of criticizing, but the idea doesn't work. Why? Because of the human element, you have failed to understand that there is a human element involved that cannot be eliminated. There are two kinds of freight, contract, and spot market, and I think that's where your confusion comes in. Contract freight has the rate set, and so could be regulated by a system such as the one you've proposed, and in fact there are already such systems in existence.... All of the mega carrier's utilize freight optimization software....

Spot market freight cannot be conformed to this kind of system, why?

1) There is no "set" rate, the rate is determined through negotiation.

Your "vision" relies on a standardized rate that can be mechanized and distributed by an automated system.....

There is no "standardized rate" in spot market freight that would allow you to tailor a computerized distribution system for the purposes of load matching....

 

Hopefully I can explain it for you a little better.

In order for your system to "work" you would need to have all of the loads that your system is going to use already "booked" and the rates already "set".....

In other words you would have to act as a clearing house for loads that you had obtained personally off of the spot market, and you would then be, in effect, double brokering these loads...

Now, what happens when you fail to get these loads covered at the rates at which you bid them?

And how would you get this vast number of daily loads?

And how would you set your rates with the brokers from whom you are acquiring them?

As far as freight matching systems go, the load boards already in existence can be custom tailored to fit search specifics.

But the load isn't covered until the prospective carrier calls the broker who is proffering the load and the two parties reach a "deal".....

Two humans communicating and interacting to reach an agreement cannot be automated.

Hope that helps.

 

Alright, I'll be your Huckleberry. $200,000. $125,000 up front and $75,000 when you make your first million. 120 days consulting time. I'll be your consultant... these are my terms.

Stop discouraging him... he has an idea that will make me some money.

 

Do you already have a brokerage opened? What do you bring to the table besides software that I can purchase?