Hi guys,
I was wondering why would an o/o deal with a broker when they can just higher a marketer (on a % base) to do the same thing but actually work on the drivers behalf to insure good rates and loads?
Manny-
Broker vs marketing
Discussion in 'Freight Broker Forum' started by Man_opoly, Mar 14, 2016.
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You are describing a dispatcher, not a marketer... O/Os deal with brokers so they have access to loads they otherwise wouldnt have access to.
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But I would think that a marketer (or dispatcher) who was hired by an o/o or 2 and who had good report with large companies would be able to get the same type of business and better rates dealing directly with the larger companies or am I missing something?
Manny-Last edited: Mar 14, 2016
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Manny I believe what you are describing is correct. One time a fellow called me and said he would do just that. Being a one man band a salesman (marketer) would be very beneficial. He asked me who or what businesses I serviced. He was to call on similar clients. It all sounded good. He had a very impressive web site and was going to put me in touch with the people to develop one for my self, all for a very reasonable rate per month. Only thing was he did not have a office in Peach Tree Plaza in Atlanta. He lived in Chicago.
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You are correct, there are solo dispatchers who handle several o/os and can find them loads... but even they will use brokers to find loads for their drivers, and they probably aren't easy to find.
People use brokers to get access to freight they otherwise wouldnt have access to. Some larger shippers just don't want to deal with smaller operations, so they work with only large carriers and brokers.Man_opoly Thanks this. -
I was thinking about this the other day and stumbled upon someone on Linkedin that acts like a transportation service sales agent for a few carriers he represents. He used to work in sales for a few mid/large size trucking companies, so I guess he took some of his direct accounts and started his own gig. He most likely charges a fee obviously, thus connecting his own clientele with a few carriers.
Lite bug Thanks this. -
brokers are very crucial to the industry you cant throw them to the dogs they are professinal marketers, negotiators, salesmans, and deserve the miney they earn.
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Sammybp you are right. However they are not employed by the carrier.
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No, I think brokers are just glorified marketers and opportunist who exploit situations to make profit off someone else's abilities, unlike salesmen who actually sell something like a tangible product or service. I know the difference as I am one... Even though I came from the medical field the concept is still the same (make the most profit off someone else's ability/gains)... I would think if I worked directly for/with a few o/o's that would benefit them and I'd still make a profit by just taking a percentage off the top and not have to worry about changing market rates as the best rate would already be givin and I wouldent have to worry about manipulating rates to match what's being offered (that's just more work). I've seen and been told current rates offered that are going out and I'm just floored... I think the main reason I'm considering dealing direct is I don't need to worry about bond ins. or getting my own authority since the drivers will already have one so that's less cost and paper work I have to worry about, plus the o/o's would see what is getting billed... I already have access to some nation wide companies, so getting their freight is not even an issue for me... So I guess this would just come down to marketers vs brokers and who o/o's rather work with...
Last edited: Mar 16, 2016
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Sounds like you want to skirt the rules and not have a $75,000 broker bond. What you are suggesting here is to offer a service exactly like every other broker out here offers. You have no assets and will get access to the exact same leftovers and excess freight that every other broker gets access to. After the direct carrier(s) has covered what they wanted. That stuff never pays a premium unless trucks are tight. Your freight will be subject to the exact same market pressures as everyone elses. You might have a handful of accounts that pay well and do so consistently. You will have to earn that kind of business because no-one gives it away.
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