two brokers

If you call XPO asking about the load they'll probably be scratching their head wondering what you're talking about. Universal has the contract for that lane. Do you think they'really going to lose face asking XPO for help covering it? Of course not. That's their lane for their trucks. They have a brokerage if they need to find extra trucks. In a real pinch they might go to some expedite agents at CHR or TQL and say hey folks, find us a truck. I have gotten loads like this from the likes of TQL and CHR in the past several times.

It'll be professionals trying to cover it, not some idiot fresh out of college, and they don't blink when you quote after asking what it will take. Because what they do is tack on their finders fee above that. Are you cheap and afraid to ask for big bucks? They score big. They still score big even if you're not. That's how it works. Couple of years ago I used to bid on a lot of sylectus network freight. Kind of got a reputation of "vulture" gouging on rates. Which was a badge of honor. But of course that makes you the last one to get called on and causes grudges even. It was funny how a bid would get put in before lunch to one of the network partners then later in the day would actually be awarded the load from the likes of TQL for even more money.

Because these guys cringe or hesitate on a quote and then it costs even more later. The smart ones snatch a truck right up. The others hem, haw, cringe and wonder why any carrier would consider to quote such a rate. I put my quote out there and that's it. I'm sure that's in the comments on some of the 3 letters computer screens too. The direct shippers I've tried to get in with act as if I am from some strange planet. They never pay like that until they have to on the spot. They will pay one of their big carriers a rate like that but not little guys. Just how it is with vans. Not complaining. Actually find it to be a fun game to play.

 

RC, you should be ashamed of yourself with this "the way it is" logic ! Lots of people would say "the way it is" pulling a van you'll never average over $1.85/mile and rarely get home. We know that's not true, and neither is this. Why I am aware of at least three situations where a large company will use the little guy for their high dollar loads just to keep the big carriers thinking everything is covered. Anything is possible, you have to find the person who decides "the way it is". Sometimes you hit a dead end, that's true. I have a friend in shipping at a big yellow mining equipment manufacturer, he got a lecture and a slap on the wrist just for asking who books trucks. 0h well.
But this is what CAN happen. I had my eye on a shipper because I kept seeing loads out of a certain town in a spot where I needed loads bad. I never called, but a little detective work figured out the shipper. I waited until it became obvious they were having trouble moving loads one week. Then I sent a well worded email to the traffic manager. Now, I got a reply explaining they use a certain broker for all loads. This particular broker wasn't even posting on the boards, you follow what I'm saying ? So I could have called 7 different brokers on the board and never got anywhere. Instead, I had the shipper call the main broker on my behalf. Not only that, but I think he was madder than a wet hen they weren't getting him trucks and it somehow must have created the impression I have a relationship of sorts with the shipper. Because that broker sure was nice to me, too nice ! Since then I always offer 25% above their offer rate and get it immediately every time. That is 25% more than what the brokers posting the loads are getting, dig it ? Again, there are good reasons to care who you get the load from.

 

I think what we do is apples to oranges comparison and Danny you pulled a van for a while so you know how competitive it is. Always about price. Always. Direct van freight sucks unless you can cover volume. My whole operation is taking advantage of the market as much as possible as often as possible. Working direct for GM - not going to happen. XPO? They're huge like CHR - without a point of contact you're pissing in the wind there. Besides they call all the time offering up opportunity anyways. Any partner is a good one if they pay my rate on the spot, right? I don't see brokers as the enemy. They're not bloodsuckers. It's not always best, nor even always possible, to cut them out of the picture. And I can guarantee you there aren't any direct customers lining up to pay me, or anyone else, 25% more than what some of these brokers are. In fact if some of these brokers are making $50 a $100 off of my truck, at times, they would be doing very well. That's not brokers whining pulling the wool over my eyes - I know it to be the case in some instances. So I guess we will just have to agree to disagree.

 

I'm just explaining why I care where the load comes from, in general terms. I'm not criticizing or commenting on your particular situation. It's obvious you have a good read on that scenario. I guess the only point I disagree with is this concept that your too small to deal, you can't play stuff. It's tough for anyone to get a foot in the door at all sorts of places big and small. You think that someone from CH Robinson can just call up a global corp. and they say, "oh, sure you are from such a big company that I would love to talk to you !" Big, small, doesn't matter. What I've found is you just have to approach people the right way. It's really not uncommon for someone even with hundreds of loads to have just one that causes most of their trouble. Could be a problem reciever, could be a load drivers run out of hours, whatever. Sometimes an independent O/O is the perfect solution, even for the largest shipper. Look, I have authority and I'm not afraid to use it. I don't expect you to understand this but there are just certain advantages to dealing with the guy who has 100% control, even if it's just one truck. And also 100% accountability. I can offer something that even a VP of Schneider cannot when it concerns one truck.

 

Danny, that's a tad offensive. I have the exact same 100% operational control as you. I am a free agent who can work with anyone I choose brokered or direct. The buck stops with me. The office does invoicing, compliance, and forwards customer calls to me daily at all or whatever hours I choose 7-24-365. No-one asks me what I am doing or why I take or reject any load. I take full responsibility for everything booked, anything that goes south, good, whatever. I negotiate and book everything on my own. I can offer a customer anything you can and more that you can't.

My point to you that you can't consider because you are so proud of your name on the door.. There is strength in numbers. Ask any of the fleet owners in here about how much easier it was to command rates when they 25 or 50 trucks compared to being 1, 2 or 5. They bring some clout to the table and yes even some flexibility. Can cover a couple dozen loads or more a day. Problem load their truck drivers don't want? No problem their brokerage can deal with that one. Authority works for some and doesn't for others. It is not the end all, be all and really has nothing at all to do with whether or not anyone is capable of dealing with the extra paperwork involved. An open mind and solid negotiating abilities will always win out over anything else regardless who's name is on the door.

 

Chris,

Of course there is strength in numbers. That's my whole point, there is strength in numbers and a guy like me can in no way compete on that field. That's why I play a different game entirely, I focus on what I can offer that the big volume guys can't.

I understand you have found a niche within their game and good for you. But it seems you keep telling me what I can't do, you keep saying it's impossible for me to do what I do everyday.

Concerning a name on a door. I'm sorry if that's the way I come across. The truth is I chose the name on my door very carefully. I thought about something more corporate sounding like First Class Logistics, XYZ Transportation. Something along those lines would have been effective with a certain group of people. But I wanted to appeal to other small businesses, I wanted to come across as friendly, non-pretentious, and appeal to traffic managers who may have worked their way up from blue collar jobs. That's the people I seem to have easy repertoire with, and people who are frustrated with phone menus and talking to a different person for accounting, dispatch, sales, etc... being put on hold and 20 different email addresses. That's why what's on my door is there.

Anyways, this conversation is over for me. My point was simply it is important to understand how the loads come about, even understanding how customers place orders and how a line item for transportation is generated when sales quotes a customer is helpful. You are missing out on a whole lot of useful information if you just focus on the rate you get on a load. And I will stand by my argument that I want to eliminate middle guys and get as close to the person actually in charge of the load every time I can. If you want to read that statement as some kind of attack on your ego, I guess I can't help that. But it is not intended to be, it is simply what has worked for me based on my experience.

 

I think some guys focus too much on middle men as if eliminating them is the answer to everything and rates will magically get better. More often than not it just ain't so. Time and time again I have proven to myself and a few friends close enough to my operation that a person can beat direct rates and averages by a long shot. I've seen them do it to. Consistently. It's less leg work imo. It needs saying again good negotiation skills and instincts are critical. Middlemen are a convenient bogey man.

 

im all broker... I aint complaining .. not yet anyway. for me its simple. pay the rate I want and I move ur freight. u don't pay it, I wont move it. broker or direct