I think I'll upset some people with this one.

Getting upset about what brokers make is like working for a company making $0.xx/per mile and finding out the company is making more on the load.

If you're being paid what you want, I wouldn't see the problem.

 

Realtors have fixed rate commissions for selling real estate. I would like to see brokers do the same thing. There is full disclosure on the part of realtors with homeowners. Realtors used to make 6% for residential and 10% for commercial listings. Realtors seem to do well as a group with their fixed commission rate. But, they usually work for the homeowner. Brokers in the freight business seem to work for themselves. I am not sure that most should even really be called brokers, if you compare the two. They neither represent the shipper or carrier. They do get freight from the shipper, but take freight and set the rate. With real estate brokers the homeowner sets the rate (sales price of the home). Buyers (carriers) often receive rates based upon their negotiating skills rather than a rate set by the shipper. Full disclosure has never been made by most freight brokers. Having fixed rates of commission would give brokers much more credibility with carriers and shippers. On the other hand, it is up to each carrier to understand freight lanes, market demand and their cost of operations. For some time I have felt that the relationship between brokers and carriers should change. I would prefer to see brokers act more like manufacturers reps than the current relationship. Brokers would be free to represent as many carriers as they could service and be paid by the carrier instead of collecting from the shipper and then paying the carrier. If brokers were more like manufacturers reps then they would be paid by the carrier. All billing would go through the carrier and it would be the carrier who paid the broker. It would accomplish the desire for some for full disclosure and would likely result in higher rates for carriers. Commission rates would likely be more uniform and there would be no need for brokers to have authority. It could benefit the smaller brokers who are required to post a $75,000 bond. With brokers representing carriers there would be no reason for a bond. Control would shift from the broker to the carrier.

 

I guess you missed what I was saying in my post, it is a waste of time worrying about what a broker makes. the fellow who wastes time and worries about what the broker is making is doing just that wasting time and being unproductive.

what is missed by these folks is if they truly knew their lanes and rates, if they had better negotiating skills, if they knew better seasonal shifts in freight and rates, where the dead spots were and weren't, then they would not be concerned with what the broker is making, they would have a much better handle on if they were getting more of what they feel they were worth.

that's the problem, many don't want to put that effort into it, they simply think they should be given a rate that will ensure their success without much effort on their part.

and why should someone be that concerned about what the broker gets? most o/o should spend far more time knowing their costs, finding ways to lower their costs, and be more efficient with their resources, etc. instead just wailing away about how much the broker gets.

but I guess its easier to worry about the broker instead of improving ones skill set.

I also think people give brokers to much credit for rates, does not anyone think a shipper says that's what were paying and that's it.

 

Simple.. It's called buyers remorse, it happens all the time. If you feel like you got a fair deal at that time.. Why worry later after the sale?

 

It is really the carrier who sets freight rates. When a carrier takes a load he is setting the rate, even if he takes whatever is offered. If you don't know your operating costs and accept a rate where you cannot make a fair profit, it is your fault. The big problem is when you start out. You most likely have not taken time to calculate your cost of doing business. So, you won't know whether you are making money or not until after the fact. Once you have been in business for a while, you will have historical date (the best type) to use to check whether you are making money or not. If you are thinking about buying a truck, do your homework so you can know what you need to haul a load. Spend time learning lanes and freight availability.

There are a few brokers with whom I won't do business, but for the most part, I don't have a problem doing business with brokers. The alternative is to find your own direct shippers. Even the largest carriers do at least some business with brokers. For the most part, I don't worry much about what brokers make. I know what I want to haul a load and have spent time learning freight lanes and rates. I know that I will deadhead rather than take a load under a certain rate. Some won't. There are those who will haul at any rate rather than to sit for a day or deadhead. Each of us makes our own decisions concerning what rate for which we are willing to haul a load.

I don't see things changing much with respect to brokers/shippers/carriers. So, you need to deal with the way things are rather than what you would prefer. I posted earlier in what would be an ideal for some. I don't really expect things to change in the near future, but I do think it is a valid option. If you deal with brokers you should understand that they are providing a service and are entitled to earn a profit for their efforts. I don't know anyone who is willing to work for free. How much a broker makes is not something under the control of the carrier. There is no reason to worry about things in which you have no control. I would rather spend my time and energy on managing and building my own business than worrying about what someone else makes. If you are a good negotiator you can lower their commission by getting the best rate possible.

 

u used the word "tires" the plural form. but removed the tires brand, size & load rating of the tire...myself, i dont have an opinion...is it alot?

 

u do understand this thread really isn't about tires?

 

Lots of stores do this, they call it price gaurantee, as long as it in a certain time frame

 

("...The word analogy can also refer to the relation between the source and the target themselves, which is often, though not necessarily, a similarity, as in the biological notion of analogy. Analogies differ in two ways, some are written as similes and others are metaphors. A simile is an analogy that compares two things using the words "as" or "like;" however, a metaphor is an analogy where two unlike things are compared but have something in common.

Analogies play an intricate role in the solution of problems such as perception, memory, decision making and communication. Thus understanding the meaning of an analogy is key to the success of the analogy in communication. In some cases an analogy will be understood by most people that speak the same language, within small social groups of people, or by people living in a certain region or country...")

Myself, having some knowledge of a Tire, i was hoping this abridged language could be brought into clear focus before jumping off this springboard with a point that would, keep to the subjects focus, bring about new insight & all while engaging the conversation; The Title, "I think, I'll upset some people with this one...". i.e. Mostly people get upset thru poor construction & abridged language. When their idea, albeit focused for their own understanding wasnt fully developed to engage a broader audience.

 

im TIRED of all the people who don't understand this post, so let me TREAD some light on it. Hope this helps.

There was a gentleman named Stone. He was a worker at a tire shop. They had to Fire Stone. It's just another bridge Stone will have to cross with his wife.
Later the next morning Stone was sitting at breakfast with his wife reading the morning paper. He came across a tire sale ad. Stone says 'look, there's a tire sale down the road from us' to that his wife replies 'what do you need tires for?! You don't even have a car' Folding the paper, Stone replies 'You don't hear me complaining when you say there is a sale on bras!'

Hope this post helped. If not can someone RECAP it for those who still don't understand? Boy, typing this much sure is TIRING.