How do brokers justify 30-50 % percentage

We aim to average 15% annually. While I don't personally think that 30-50% margins are workable in the long-term and only really serve to drive carriers out of the business which leads to tighter margins when capacity tightens up, the truth is that a broker is entitled to the difference between what a customer will pay and what a carrier will accept; the actual percentage is irrelevant.

 

Well, I average about 12-15%. I'm sure that there are some guys who are getting 30-50%, but that's nobody in my office. That does not lead to repeat business, and it doesn't engender good relations with your carrier base.

 

Remember brokers split the profit with the firm.

So 30-50 might be the split on what’s left after carrier is paid.


I know of one double broker who makes 60% on what’s left after carrier is paid. He’s a rare breed and can get loads that pay higher then most drivers on the same load. He just knows how to do it. In fact he makes more then what the original brokers make.

 

Because we have a double super secret website that we all go to each weekend to set the rates for the next week. That decides how much of the money we get to keep. We have to be very careful that some fake broker doesn't let our secrets out. But sometimes it does happen, then they have an unfortunate accident.

 

It's going to be a 100% charge against the estate of a dead broker to be transported as cargo...

 

To the OP..... If you "ALLOW" a 30 to 50% margin to a brokerage...Then thats your fault

Learn freight lanes- Learn What Customers CAN and WILL Pay Directly to carriers and 3pl's.

If A Broker got away with 30 to 50% with you...He was able to smell Blood when you picked up thew phone

I Rarely use 3pl's anymore....Only when My Inbound Customers aren't shipping at the point my truck is there.

I Won't allow them much more than 8-10%...Because I Know what Customers and Lanes Pay Plus/Minus 10%.... Sure I Get Told No a Lot- Because brokers feel the need to Hold the Purse strings because they Lead your truck to freight. Plus,Plenty of Cars to ride in.........

I Lose a Lot of Time Negotiating with them also-Just to Squeeze the Towel dry.

OP, Get your own customers- Less Work in the Grand Scheme ..

 

How do some drivers justify 5.00 a mile...how do some shippers justify 1.00 a mile.....my dad tough me that value is relative what you offer is only worth what someone else is willing and able to pay for it.

 

Nobody averages 30 to 50 percent on the average of all loads. I highly doubt anyone is getting 50 percent one a single load. Just because they made 35 percent on one load doesn’t mean they didn’t make 0 percent on 3 others to get them moved.

Like has been said most brokers hope to make 15 percent but many I’d say are around 10. If your not happy with the pay say no and keep calling on loads. If you think brokers do nothing and are just leeches then go get your own freight and try that task on for size.

 

Look, brokers talk to each other . The make agreements on how much they will pay going in or out of some areas and they follow through.
O/O si not talk to each other . They do not make agreements on how much they will charge for their service . They DO NOT follow through.
So what you expect? This is capitalism. And capitalism with out integrity and compassion it becomes worse and that communism.