Brokers offer transparency. Imagine that!
Discussion in 'Ask An Owner Operator' started by TallJoe, Mar 23, 2023.
Page 26 of 35
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Real estate is apples to oranges. For the comparison to trucks to be similar the seller would have to agree to sell the house for a certain price, once that agreement has been made then the seller would step out. At that point the broker would put the house on the market and hope to get what the market will bear as that’s where their profit would be. And the original seller would have no idea if the broker made or lost money because they’re out of the deal and their house is gone and they already have their check.Oxbow, Jubal Early Times and Siinman Thank this. -
Oxbow, Jubal Early Times and Siinman Thank this.
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I don't think very few that want this realize how much of the things they buy have a broker between the manufacturer and the consumer.
For the most part, only the very large buy direct.Oxbow, Jubal Early Times and Siinman Thank this. -
What I am looking for is to eliminate parasitic burden in otherwise simple equation: I haul, shipper pays, broker gets his commission. Yes, if the commission affects the livelihood of either a shipper or a carrier, they become parasites. The idea is to channel as much from the shipper's transportation budget as it is possible. Their role is to find the cheapest, yet reliable carrier. That's where the market equilibrium determining the rate should be found.
BTW: They are accusing me of calling for governmental control, while they themselves benefit from it to a certain extent. HOS, Safety Ratings, mandatory insurance requirement, different sorts of freight permits are all variables imposed by the government which shippers don't want to deal with and therefore they resort to brokers by delegating this, otherwise artificially made, burden on them. Just like ELDs justify their existence in the name of safety, whereas without the mandate they would seize to exist. -
There is a seller and a buyer, and a middle man in between. The parties are negotiating the price of commodity that has more or less established or predictable value by adjacent dwellings in the area and the last thing on their mind is to worry about what the broker's commission is going to cost them, because that can be more or less predetermined by existing standards.
Everybody knows their place in a row. -
Siinman and Jubal Early Times Thank this.
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88 Alpha, Long FLD, Siinman and 1 other person Thank this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 26 of 35