How do brokers justify 30-50 % percentage

Wow, @Nobroker continues to impress.

 

Interesting thread, love the back & forth conversation.

my thought regarding what a broker is being paid? I don’t care! I know what my cost are, I know what I need to operate my truck, pay my bills and feed my family. My overall cost are $1.58 cents per mile, any amount per mile above that is money in the bank!

So now that I know what I need to make, I know my lanes and what they I’ll bid on loads accordingly. If a broker likes the number we agree to, then great! If I like his/her number then great! If we don’t like the numbers, we’ll then no problem! It’s called free marked capitalism! That means I don’t care what a broker profits, just like I’m sure they don’t care what I profit! If I want to make more than I can go out and find my own customers, it’s called contract freight. But somedays the spot market is wonderful, currently refer rates have been running between $3-4.00 a mile. And out of that I don’t care how much the broker made, they pay me because I provide a safe & friendly service.

Ultimately If your worries about what what a broker makes and you want regulations & rules for them, then you the problem in trucking not the solution, you should probably go find a new occupation. And don’t forget the most important part of dealing with brokers, it a secret power you have to keep your self from taking freight you don’t like, it’s called saying “No thank you”

 

I have a whale in the produce industry as a customer. We move over 100 of their loads a week on avg. I sit and talk to 100 drivers a day myself. There is absolutely no way my customer, who is one of the larger produce companies nationwide (every grocer in the country sells their stuff) has the time, energy, or desire to talk to 1000 carriers a day to get their produce to where it needs to be. IT would be impossible and too costly to do. Thats where we as brokers come in. They dont mind paying me an extra 200 - 500 to deal with all the idiots calling in. Easier to deal with 10 people who then deal with all the carriers. Cheaper too.

 

Oh my.. that made me chuckle.
My company does brokerage as well.
There is so much wtf I don't know where to begin.

If you don't like the rate, don't take the load. Otherwise, learn more aspects of the business so you can haul direct for customers.

 

Brokers are your customer, not your enemy. The driver parked beside you in the truck stop hauling cheap freight is your enemy. If we didn't have brokers and shippers/receivers had to deal with different drivers on each individual load and negations, the logistics of it all would be an absolute nightmare and you would be waiting twice as long at their facilities. If you feel that a broker is trying to take too much of the pie, then don't take the load. There are plenty of others out there to choose from.

 

If I get what I need to run my company, why should I care what the broker makes.