Well 1st of all we are talking about the broker being transparent with their transaction with the shipper. We haven't discussed what anyone's costs are.
But I would bet you any day the week if you took the average owner operators expenses and compared them against the broker you would see a massive massively lopsided situation.
I can tell the broker what the cost of insurance is the cost of engine replacement the cost of tires the cost of insurance, tags, 2290, and he can tell me the cost of replacing his computer once every 3 years and his reclining chair.
That is an easy argument to win 7 days a week.
Government regulates everything else time to regulate rates.
Discussion in 'Freight Broker Forum' started by Nobroker, Apr 28, 2020.
Page 11 of 16
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
-
If you truly believe this is a good idea I have no words for how short sighted that is.Rubber duck kw Thanks this. -
For the sake of argument, let's leave the government involvement in capping the brokers' cut, alone.
It is a given,
1. "How much a broker has it on it or should have on it" - transparency - is a valuable information asset, aiding the profit maximization strategy. Every owner operator, who is in possession of it, has an edge over other owner operators, who don't. The mere efforts to obtain it are completely justified. I don't see anything cunning or immoral in wanting that information.
2. Knowing your minimum rate per mile equals knowing your costs. Based on that information, the strife for a desired rate is built upon. The desired rate, on a given lane, is not necessarily an outcome of "what a broker offers me" minus my costs but rather "what a broker can pay me" minus my costs.
The two points are very complementary and innocent as such. While it is arguable, that the effort of establishing a common minimum rate per mile, is a daunting task, the transparency of a shipper to broker pay, is not. As a matter of fact, you can pay to get that sort of information on DAT.
I don't see anything detrimental, to the livelihoods of owner operators or brokers, in the very transparency. The transparency, in itself, does not prevent brokers from maximizing their profits, it would sure make it more difficult for them but at least nobody will accuse them of thriving on o/o's ignorance. Now, if they get to keep 65% from the rate, and everybody is able to see it.... they might feel ashamed a bit, or else they can always somehow justify it. After all, not all the trades, in this World, have to be glorified.
Another discussion is whether or not the transparency should be required and imposed on.
It is no brainer that I would benefit from it. Therefore, I vote for it.
Is it not, in a capitalistic spirit, to say that, a good businessman cares only about himself alone, someone else's interests are none of his concerns?Last edited: Apr 30, 2020
brian991219, Dino soar and chimbotano Thank this. -
-
I still can't grasp the idea of being concerned with what someone else makes.
Sirscrapntruckalot, ZVar and Rubber duck kw Thank this. -
-
alds, Sirscrapntruckalot, ZVar and 1 other person Thank this.
-
Well said!
Any broker will do anything to make as much profit as he can from his transactions. But , in order for a broker to do that, someone has to accept it .
So, it is your #### responsibility to say NO to cheap loads rates, period!
Unfortunately, we as independent O/O are not united .the cost of living goes up and up and up and our rates continue going down. So, it is our ignorance that is keeping it this way . -
If you take the load for a $1000 and the broker made $5000, do you think you are somehow entitled to some of that money?
This is a free market, capitalist system, not socialism.brian991219, Sirscrapntruckalot and Rubber duck kw Thank this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 11 of 16