Can I Make The Brokers Be Transparent?

you are right. i misread your post. Real estate brokers always get 5% cut out of every transaction. that particular market, real estate, is real transparent. It would be easy if the FMCSA said, okay Brokers only get 10% by law. That would be the end of the suspicion of shady brokers, for the most part.

 

each party member would be the shipper, broker and carrier. It's pretty simple.

 

Broker might think it would be great if the fmcsa declared all truck drivers can only earn 40k per year.

Do you really want the government dictating your profit margin or maximum gross income?

 

When dealing with government regulation written in legalese, nothing is simple.

 

That's a good point but I have to wonder. If a flat 6% take for every real estate transaction is good enough for real estate brokers then why not freight brokers also? You have some very successful real estate brokers out there living large on that cut, sometimes half of it if they split it with another agency. And there is no cap on the price of real estate. Someone defend the freight brokers here and explain why that wouldn't work in transportation cause I would like to know.?.

 

If it was a fixed % they'd be constantly going back and forth with the shipper, which is exactly what the shipper doesn't want to do for every load. How would you negotiate rates you pull? I'd be willing to bet you are actually taking money out of the brokers pocket in order to keep broker's customer happy and none the wiser.

While we're at it, why not regulate what the agent gets and what the brokerage house he works for gets? It's a free market.

 

Well, the same thing could be said about the real estate market as well according to your argument. It seems that brokers who do real estate make plenty of money if they hustle.

I can imagine brokers in freight could make loads of cash if they actually sold on volume, instead of margin. I do understand you concern though. The problem is transparency and brokers do not provide what their cut is for the most part. It seems like the Government might have to step in and referee this problem, unfortunately.

and the part about government regulating maximum gross income is a red herring and completely non relevant to this discussion. there has not been precedence of government regulating maximum income, unless that government is Soviet russia or NOrth korea.

 

I am not buying your argument. IF the brokers rate was fixed at 10% brokers would have to hustle on volume and getting many customers as possible. It means brokers actually have to WORK. new concept hey.

And with the new theoretical law being practiced, a 10% Commission, if the broker always went back to the shipper to increase rates and negotiate, that problem between the shipper and broker is up those parties. No one is crying a river for the broker in that case.

A 3000 dollar load from a shipper would get a 300 dollar cut for the broker and 2700 for the carrier. It sounds about right. Brokers don't have the overhead that carriers do and they can always find more shippers or even double broker loads if they want to. IF the FMCSA mandated brokers receive a 10% commission to every load, there would be transparency in the transport business. Novel idea right.

 

Doesn't seem very American to regulate what someone's pay is. I guess there aren't very many Americans left in this country anyway.