Already Have Freight

Discussion in 'Freight Broker Forum' started by MTSinKY, Feb 27, 2017.

  1. MTSinKY

    MTSinKY Bobtail Member

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    Feb 27, 2017
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    Would any of the Brokers on here agree the hardest part is obtaining your freight? I have been a driver for 27 years. I have the chance to get in on the ground floor of a in house brokerage at my place of employment. We will be moving our own materials and passing the freight on to the customers. One of the questions I have is, what is a fair amount to take for doing the brokerage. I would like to hear from brokers and truck owners alike. Thanks
     
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  3. boredsocial

    boredsocial Road Train Member

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    Apr 13, 2014
    Louisville, KY
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    Is this a question about what you should make or a question about what you should charge your customers? Or are you trying to find out what you should pay trucks?

    In house brokerages usually don't pay very well. Putting in house brokerage people on salary is pretty standard. 50-60k after all bonuses and incentives is pretty normal.

    I can't tell you what to charge your customers. Charge them what you can pass through without affecting the volume of business you get. 15% is a good rule of thumb for captive freight like this.

    You should pay what you need to pay to get a trucking company that fits your requirements and actually wants the load.
     
  4. MTSinKY

    MTSinKY Bobtail Member

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    Feb 27, 2017
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    Thank you for your reply. I already have my salary and commission in place. I was wanting input for the % amount that brokers take for themselves. Being a driver myself I want to be #1 honest, #2 fair. Thanks again for the reply
     
  5. boredsocial

    boredsocial Road Train Member

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    Apr 13, 2014
    Louisville, KY
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    Profit margin isn't about honesty honestly. You owe trucks what you promise to pay them, and you owe them fair compensation for things that go wrong if they weren't disclosed as risk factors when they took the load. How much you charge the customer is none of their business.

    As a broker your primary duty is to the customer. Your job is to take care of your employers freight as reliably and cheaply as you can. That won't lead to you screwing anyone... The trucking companies take care of themselves just fine. As long as you aren't paying bottom of the market rates to crappy carriers and inflicting poor service levels on your internal and external customers you're doing a good job. Don't make this gig harder than it is by making it more complicated than it is.
     
    MTSinKY Thanks this.
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