$$$$$$$$$$$ help kill the broker$ $$$$$$$$$$$

The preceding says it all about running as a profitable O/O.....

 

The bond I have for my brokers license was for $25k.

If your allowing them to take 30% your the problem but I wouldn't do it full time for under 50% if I had to deal with truck drivers directly. I haven't taken a load at posted rate in over a year. Just took 2 loads yesterday (for 2 trucks) that was posted for $400 each plus 14% for 63mi. I got them for $600 plus 14%. All through a broker. Got the same load last saturday for $798 fuel included from the same broker. These weren't even permit loads, only 42k lbs. Why? Because she knows who to call when they need it done. You get the good rates with service not by going over their head.

 

Optimus.......If you're tired of brokers trying to low ball your needs $$$$$$$ wise.........learn some new words.


"I won't haul it for that rate."



Figure "YOUR" rate for everything and stick to it......

 

Brokers are not the problem. It is the truckers. I just booked a load for about $2.10/mile. Another trucker booked the same load, going to the same consignee for $1.60. The loads were identical. I don't really fault the brokers, most of the time. They could not sell a load for a cheap rate if a trucker refused to take it. There are some brokers who really like to take advantage of truckers, but again, they couldn't do it without the truckers permission.

It really doesn't matter whether the trucker got the load from a broker or the shipper. He would still not value his service. Truckers provide a valuable service. This country would literally stop were it not for the trucking industry. Yet, there are so many who place no value on their service.

The reality about dealing with brokers and cheap rates is that it is the trucker who takes a load that sets the rate. If he takes a load for a cheap rate, then he has set the rate at a low level. On the other hand, if a trucker refuses to take a load until he gets a fair rate, then he has also set the rate.

Whether you haul for a cheap rate or not is up to you. At some point you need to decide whether you want to be successful or just get by. Often it is a matter of survival. If you consistently take cheap freight they you have no one to blame for your failure but yourself. And when you take that cheap rate it makes it much more difficult for the rest of us to negotiate a better rate.

 

a few simple steps to world domination

the easiest way to eliminate brokers is to purchase the companys they broker for. next step when you get tired of paying for fuel you can buy a drilling rig and build your own refinery next you should also eliminate truck dealer profits by building your own trucks. i can share more secrets to success later but these first few steps should keep you busy for a week or two.

 

You may of had a $25k bond but you only need $10k the amount most cary,i dont allow them to take anything because in the last year i've only hauled one broker load and they took 10% which is fine with me but there are plenty out there taking the 25 to 30%, if your fine giving your money away thats fine but i will go direct and keep the extra money. I will agree its not all the brokers fault but there are to many out there that dont pay go under start up again and do the same thing. I started my own company to make money not give it to someone else to do the same thing i can. And for your last statement some brokers care about service and who they use but the majority only care about how much they put in there pocket and could care less who hauls it. Right now i know of a load a broker has that the shipper pays $600 the brokes has it listed for $450 and if you call the broker to get more money they tell you thats all there is no room to move so you keep sticking up for the brokers i know there game and will bypass them 99% of the time.

 

You guys don't understand. These guys have no control they're forced at gunpoint to haul the loads at the posted rate. It's the brokers fault that they didn't coddle them and personally take a loss so the trucker can profit. I guess there are still a few out here that know how to say "no"!

If you can haul direct great but like I said a lot of places don't want to deal with you. Also if a shipper uses one broker and that broker finds out you're trying to bypass them don't expect to ever haul out of there again. And if that's a local company for you and one you always haul for you may be screwed so choose wisely.

 

Well, go on ahead and direct book, haul and then direct bill your shippers. Come back in a few months and let us know how it's working out for ya'.

 

it works out just fine with a lot less problems than dealing with brokers and more money as well

 

If you have running capital, you would be fine. If you are factoring your loads, you lose 5% off the top. Most shippers get between 30 and 90 days to pay for the transportation. If you have a different deal set up with shippers you know, that's great. You have an excellent business mind. That's not the case for 90% of the people out here. They start out going independent without any initial running capital and it goes downhill from there. I have seen it first hand.

If you have a good broker who is fair about what is paid to the truck and doesn't scalp your FSC, you're in good shape and it's worth the expense sometimes to give them the paperwork and collections hassle. If you're running as hard as many claim to be, you don't have time for that stuff anyway.

When first starting out, lots of new people think volume is the way to go rather than taking their time for higher mpg, maybe not running as many miles, but running them smarter. Some think hard charging is the only way to get ahead. They don't realize that today, 6mpg is actually kind of crappy and they are blowing way too much diesel out their stacks. It directly affects the bottom line. More and harder miles also equals higher maintenance costs in the long run.

I wish good luck to anyone who wants to direct book and bill their shippers. But it isn't very often it turn out well for the true independent. It takes hard work, dedication and assertiveness. You have to first establish a reputation. That's the step many want to bypass. Being on time every time, pleasant, presentable and willing to do more than just sit in the truck while at the dock, even if all you're doing is chatting up the dock workers. It all makes a difference in the success or failure of an upstart company.

Again, good luck. But if you don't make it, you own it. There is no company or broker to blame.