Low rates is there a bottom ?

Doesn't matter to me, if I get what I think is due to me for my work, the broker can make an additional $5/mi on the load for all I care. The brokers are not responsible for the rates dropping in this industry, it's the cheap idiot carriers moving stuff for them.

 

I believe that everyone that has posted is correct. Had the same problem in the repo business several years ago and it hasn't rebounded nor will it. When a company comes in and cut the o/o prices by half in most cases or more then every new or failing person jumps on because the larger company promises volumes of work, but it never comes. But on the other hand if a group gets together to get CPM back up to 1-1.50 per or higher than great all would benefit from this until times get tight and back to .28-.20 cpm . Terry has the right idea here, set your rate and don't waver from that if you can get more great but you have to deal with what you get. Also you are responsible for knowing what your exspences are and what you need to cover those and make a living. But just my .02

 

For those who are crying it is not fair, welcome to business, nothing is fair in capitalism! We get what we put into it, you want the lions share of the rate then go knocking on doors and make some direct customers. I don't like how Ready has stepped in between my business and Manheim, but I have adapted to it and am actively making new, direct customers every day with the intention of not being reliant on Ready or any other broker for my survival. My family, as well as 5 others, count on my success, so I do not have any other option but to figure out how to survive and remain profitable in today's business climate.

As for brokers making 40% of the load, so what, that is the price you pay for them doing the marketing and fronting you the money. Keep in mind, you may be paid by the broker or sublet carrier within a few days but they usually are waiting 45 days or more for their money, I know most of my direct customers are on a 45 day cycle. (about the only good thing about Ready, I get paid within 48 hours now, used to be 45 day cycle). And really, 40% is not bad, my marketing and collection activities cost me almost that much to capture and support my direct customers, so stop blaming everyone else and start being responsible for your own destiny. Plus, if you are getting rapid pay, fuel discounts, or even cash advances from these brokers or large carriers then you are really getting a bargain at 40%, operating the truck is only a small part of running a successful car haul operation, there is an awful lot of back office work and arse kissing that goes into securing these loads, unless you are dealing with one off spot market type work, and even there there is still infrastructure that needs to be supported to bring the work together into one portal for us carriers to access it.

 

I recently heard someone say that "fair in America means only a place where pigs go to win ribbons." This is the land of opportunity not fairness.

As for rates rising, of course they will. It's supply and demand.

 

I think you will find that brokers aren't as bad as you think if you use them to fit your needs. If you rely on them all of the time you're better off signed on somewhere. Knock on some doors and make calls and you'll have some customers in no time without relying on a broker. Also I always print "due upon receipt" on my invoices. Most everyone complies except the large carriers and brokers where 45-60 days pay are commonplace. I almost believe most brokers get paid upfront before they ever post a load. Then they have little motivation to post loads at higher rates to move them quickly. I may be wrong, who knows?

 

The rates will continue to the bottom as long as carriers keep taking them there. I have been both a broker and a carrier and trust me, if no carrier will haul a cheap load the broker will have to raise the rate. Supply and demand. Very simple. The broker makes nothing if the load is not moved. Problem is, what one man considers cheap another man says is ok. Im now leased on to a big carrier and haul nothing but new cars. Some say new cars are too cheap but I make a realistic profit and make a fine living with a $5600 truck payment every month. What gets me is how some of these so called "owner/ operators" complain about the 15-20 % or more that they have to give up to get loads. That percentage sometimes doesn't even cover the sales work. Set a minum price for yourself and don't go under it

 

Since you were a broker at 1 timer....

Exactly How much does it really cost in sales?? Doesn't cost me much..Then again, I don't "Wine and Dine" potential or current secured customers.....These Days,They Want Service, They Don't even want a Christmas Card....They don't even want you stopping by.

The Brokers that Spend thousands on sales paraphenalia and display a "Dog n Pony" show are just wasting time n Money.

You Don't "Buy" a relationship.. You earn them with service and Trust

So Yeah..15-20% is too much just for a broker to Lead someone to freight.

 

You really need to stop worrying about what others are making. Set your minimum and don't go below it.