New $75,000 bond?

Exactly, that is why I asked if he owned equipment, I would be willing to bet that my operating expense has DOUBLED over the last 5 years.

Between fuel going from $2.00 per gal. to $4.00 per gal. Steer tires from 225.00 to 500.00 a piece, maintenance and parts costs have gone thru the roof, and don't even get me started on all of the state taxes from states THAT YOU ARE NOT BASED IN.

On top of that the cost of new trucks (if you have to run cali.) that are FAR more expensive to operate and maintain than the pre emission trucks. All this time freight has not gone up that much, and in some cases, it's gone DOWN quite a bit.



Stan

 

It's not that easy I've had my brokerage for two years and have maybe only made $4,000 total also the reason I'm letting it go. I only use it to move my over flow and most loads I've only made $100 off of but my CPA charges me more than I've made to send out 1099s etc.
i had someone come in months ago that had experience with brokering loads he lasted four weeks! In that time he made over 800 calls and sent 160 E-mails pricing lanes and giving bids out of all that he never took on any new work. Just because you know someone needs a load moved dont mean your going to be the guy that gets it.

Id love to park my truck and be home every night and spend time with my family If I could make $1,000 a week after my cost I would start tomorrow but its not that easy. Some customers I have it's taking me years to get my foot in the door and have lost a few to hiring O/O that didn't do there job

"There's no such thing as customer loyalty anymore" price sales!!

That's a fact I'm good at what I do I go far and beyond to take care of my customers but if someone would do the job I do for 2/3 the price I charge I'm out! This week I lost out on some loads for a customer that I'm smoking hot under the collar I've moved these people's loads for seven years they hired a new guy from another shop he is in good with a broker/trucking company and guess what happened my rates got cut $1.50/mi I can't move loads to ND for $4,000 but when your paying your drivers $.36 a mile you can do that I can't these people have 36 trucks CSA scores suck and the two drivers that were there today couldn't even speak English but for $1,500 a load they don't care.

 

But your point is not based on all the facts. Yes, there are people like me that would not have even seen a $10/week increase in the bond. But less than 10% of the current brokers with $10k bonds (data only counted active brokers) will qualify based on the asset requirement model. If you do then it is cheap. You are basically paying for process fees.

The other 90% has to try and qualify under a risk pool. And while it is supposed to be guaranteed they haven't put a cap on it. It is kind of like a car dealer saying that they will finance anyone but fail to mention you may not be able to afford the payment and conditions.

But again we get away from the key issue. A government mandated bond is just another government overreach into our businesses. And it provides a false sense of security.

If you feel that you need to do business with people that have bonds then make that a condition of who you work with. But why are you allowing the government to set false credit standards for you?

 

That was the point of my sarcasm. It isn't easy. Actually, it is really hard. A lot harder than holding a steering wheel and calling down brokers off of some load board.

If anyone of these drivers that complains about what a broker is making could figure out what the percent of profit is on the margin a broker makes and then see if they could apply the same numbers to their operation. Most that complain about what a broker is keeping is absolutely clueless to what a broker does make, what it takes to be successful as a broker, the level of risk involved and to top it off couldn't stutter out the words needed to make a sales call to get direct business.

Time and energy would be much better spent understand the market forces that drive rates. Most are fighting a false demon and could prosper if they took the time to understand the industry they are in.

 

Bill, if transportation was anywhere near a free market, I'd agree with you. Instead, it's a heavily regulated market classified as a utility, in the same realm as electric companies. There are quite a few other industries whose brokers are even more regulated that require knowledge based licensing and have criminal prosecution for grievances. Real estate, insurance, mortgage and stock brokers would all LOVE to just file a $75,000 bond and start up shop. We can dream of free markets, but that isn't reality. The lack of prosecution for fraud in this industry is lacking as well. If the Feds came after bad freight brokers like they go after bad stock brokers, there would be no need for a mandatory bond. Instead we have companies like Eleets and Truckers Express going under owing millions, and no one goes to prison.

 

This is definitely the problem.