DONT CALL BROKERS

I agree to an extent about posting a truck. It's always great to have an incoming call and book 3 to 4 times or more than what a lane ordinarily pays but anyone can do that. How many of you have called just to inquire on a load and done it? Also, sometimes no-one will call a broker about a posted load. You're the only one who has called on it.

That gives you the same power over them as if they had called you. They're not going to outright tell you no-one has called them but they'll cue you in they want to cover it real badly all the same. If someone calls me and I book their load for $1,500 or more than what they say they wanted to pay, that's fine and dandy, but I think nothing of it. Ordinary and routine. But if I call them and do it that still makes me grin.

 

But if I call them and do it that still makes me grin.[/QUOTE]



That's called "needin' to get her done" then, lol.
I had one call me about 2 months ago, I refused the rate but they called back and begged me cuz it was military and needed it desperately. I soaked em another good bunch of money and they accepted it and said they only made $20.00 on it. I know THAT particular one was true because the official CBL (BOL) states the total amount right on it in black & white.

They called me again Thursday and had another one to do. This time they weren't so desperate and offered $200.00 LESS than the first one I did, so I passed. She said they didn't have that much in it this time. Why do they think we're stupid? I might LOOK it...but...

 

I hate brokers who are shy about the fact that they work for money. I really do. I've had coworkers act like they make no money on every load with both customers and carriers. Really tilts me. Stop being ashamed of charging a fee for the service you provide. It's not that small of a service.

I also dislike the whole 'I don't have that much in it' approach in negotiations. I'll pay what I have to pay. Let's talk about what everyone else is paying, or what trucks are willing to run it for. You know, relevant stuff. Why is how much I'm making any more your business than how far your deadhead is mine?

 

It probably wouldn't be that much of a big deal about how much you're making...if the average broker understood what it takes for US to make our part. You have a phone, fax, computer and maybe a scanner. So do we as a matter of fact. I know what those fixed costs are to operate those pieces of equipment, and it certainly is far less than what it takes to operate a truck and trailer with all the necessities. Now I understand you're bonded...another cost. Still, a far cry from what our operating expenses are overall when broken down annually.

Another example here. An hour ago, got a call from another close trucking company friend who him and I share our work together as we have a mutual trust. He just booked me a military load Tuesday going 197 miles for $1900.00, a legal RGN load.

Got a call (as I stated above) Thursday from a broker to do one for $600.00 on 315 miles which I refused with good cheer. Especially since I'd have had to deadhead 180 mile to get it. (But I respect the fact that you don't consider my deadheading any of your concern of course.)

Well, I'm not a calculus major or anything, but I see a pretty large spread in these two examples. I like example #1 a lot better than example #2, so I actually accepted that one, and I am impressed with the numbers and the quality of the brokers that offered it. This is the only point I'm trying to make is that even though the market is flooded, you may want to look at the quality of people that you deal with once in a while over bottom lines. You might be surprised at what you can accomplish and in a much easier environment if you choose the right people, agree on a little better compensation, and get things done in a professional manner. "You get what you pay for" is the age old saying that stands true.

And I guess in my point in life here where I am at, a little longer in the tooth, I can also point out that I don't work for the BROKERS, so they shouldn't be setting prices in my opinion. The shippers should, and the broker should earn a fair percentage on their service, not anything more. One too many times I've caught them skimming more than they deserve from the customer's complaints of how much they were charged to move something.

 

Many,Many Customers of mine Certainly want to know How their Transpoartation Costs are Distributed.....
Brokers Have Become Very "Comfortable" Over the years knowing A High percentile of Carriers and Owner-ops Will Not insist on Transparency with Freight Rates...

Knowing That, Brokers Will Eat as Much Cake as they can..

As Far as I'm Concerned.......8-10% is more than a Fair % for a 3pl.

 

I would like that margin to be as little as possible too but it is someone else's business to give them their margin, I should not care how much they are paid. What I disagree the most is when they try to delegate most of the liabilities to carriers. Many of them want you to sign creative waivers such those as in case of overages, shortages, missing seals, late deliveries, damages, non- or late paying customers etc. - it is all on you and nobody but you. That's seems too easy a life for them. Get you cut, no matter what happens. Also all this non-solicitation clause is pretty B.S. and anti - free market too. If they are so needed and valued by their customers, what do they worry for?

 

Let me just be clear that I don't think my profits are anyone else's business. As for my overhead, you have no idea what my overhead looks like. Freight brokerages have much more in common with accounting/legal firms than trucking companies in the sense that they have a lot of payroll and finance costs... And if we do our job wrong we lose serious money either through direct losses or losing customers that cost a lot of resources to get. You also don't see the whole picture. A lot of the time when brokers are making high margins it's either because the work required a TON of arrangement and or risk (heavy haul, higher end produce like berries) or because the broker gave the customer year round rates (and makes good money part of the year and #### money or loses money the other part), or the customer has 'good lanes' that brokers can make money on and 'bad lanes' that brokers don't want and the broker took some combination of those two things for an average profit per load they felt was fair. Or I just found someone who has no idea what they are doing and got a good rip... Sorry but I went out and found that customer that overpaid me. I owe you what the market says you are worth. I am not obligated to pay you more than the market rate (which is whatever I can get a reasonable truck to do it for) to move my load no matter how much I'm getting. Trust me when I say that there is plenty of good AND bad to being a broker.

Also you guys are completely wrong about us setting rates. Trucking companies set the rates period full stop. If you don't like the rates and all the loads disappear the other trucking companies set the rate lower than you would like. Sorry about that. I feel the same way frequently when other brokers work for 50-100 bucks a load when I think we should be making at least 200 to be worth dealing with the produce headaches. And it's my right to set my personal rates like any other free human being. Sorry if you disagree, but I don't really care if you do.

 

If you're late (assuming reasonable transit time was given), are short vs what is on the BOL's, have transit damage, or do something stupid you should pay for it. Non or late paying customers is complete horse #### and is 100% the brokers responsibility not yours. The non-solicitation clause is incredibly fair and is totally in the spirit of the free market. You are using a product (the salespersons time to land that account) and do not have the right to steal it because you used it one time.

Ditto for ######## claims the customer puts on for no reason. The broker should do everything in his power to NOT have to reduce the carriers rate for any reason. I've only had to deduct less than 10 trucks this season out of ~500 so far and I tried to talk the customer out of all but one (8 tipped bins because a driver with an open alcohol container got into an accident... I'm not a miracle worker) If a broker is making deductions from more than 3-5% of the loads he runs for a customer (unless it's something weirdly claim heavy like cars or something) he should either eat most of those deductions or find a new customer. Claims have to be legitimate or it's the brokers job to stand up to the customer. Part of being a freight broker is accepting a significant portion of the risk of bad actions by both the carrier and the customer.

EDIT: Let's be very clear, if there were no non-solicitation clauses I'd be selling YOU customers and you'd be paying for them by running 2-3 loads for free before being allowed to work with them to your hearts content. Would be a totally different business. Or I'd be selling whole carriers to customers for indefinite use and would be charging recruiting level commissions.

 

I am not talking about obvious carriers ### ups. For instance, every Coyotes ratecon has a clause in which it says that if the seal is broken, the claim can be filed against the carrier, without any necessity to investigate the condition or integrity of the product. I know it is up to me to sign it or not. But this is the staff that pisses me off.

 

My companies carrier packet is seven pages long including the ad for factoring on the last page. I'm not looking to defend silly #### like that lol.