Industry thoughts

Discussion in 'Freight Broker Forum' started by Ericiot, Oct 10, 2020.

  1. Ericiot

    Ericiot Bobtail Member

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    Oct 10, 2020
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    I’ve been looking into brokering for about a year now. Been a dispatcher for 3 years (working directly with the companies drivers as well as owner ops and other company’s drivers). However, the more I look into it the more I find myself raising an eyebrow at things. One of the first things I thought of, after an interview I had to become an agent, was “if I was a broker, why would I need to be that rich?”. This thought came after some things the broker said during the interview, and after witnessing how he handled a situation with an agent when it came to how much to pay a driver. So basically after years of my current job, witnessing things at that interview, and doing some digging into brokering, I can say that I have a very pro driver outlook on everything. They’re the ones out there getting the job done and are the ones having to pay for things like fuel, maintenance, and any dead miles. If I ever became wealthy from brokering, it would be from volume. Not from taking ridiculous cuts from the invoice or charging bogus fees. The 2 things I looked more into today were factoring companies and “quick pay”. A factoring company almost seems like a necessary evil, and it would be amazing to somehow avoid this as it seems to convolute the process of things and takes away from a more simplistic and direct way to get things done. But even as a broker if you were going through one of these companies it still doesn’t seem right to charge a “quick pay” fee to the driver. Especially if you’re already taking such a large cut.

    Just some thoughts, and would like to hear back from anyone about this. If I can figure out how to avoid factoring companies, my goal would be to disrupt the industry and make a lot more drivers a lot more money.
     
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  3. wichris

    wichris Road Train Member

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    Until you find that unlike all the drivers you know that are perfect, there are many that are far from it. You will have losses that are not covered, customers that don't pay. Then you will realize that all that money doesn't just go in your pocket.
     
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  4. Dino soar

    Dino soar Road Train Member

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    There's nothing wrong with making money but some Brokers are just obscene.

    Now you probably interviewed with one of the broker versions of a mega trucking company that really doesn't care about anybody or anything but profits.

    There are good Brokers that are out there. And even aside from the amount of money that is kept, the good Brokers make sure that if the driver has any problem, like let's say the receiver refuses to unload or there is some real issue, whether it's detention or layover or whatever it is, the good brokers will jump right on that and take care of the carrier.

    I'm guessing about this because I'm not a broker, but I would imagine most places that want to take someone in and train them are probably just doing it to try to make as much money as they can and if you survive or fail they really don't care because you're either going to make them a lot of money or you're gone.

    I don't know how you get your foot in the door but I'm sure there are brokerages that are good places that are good to the carriers that you can work for.

    Maybe if you found a carrier that takes care of its owner operators you could work there for their brokerage since you have dispatching experience.

    Or work your way into that.
     
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  5. wichris

    wichris Road Train Member

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    High volume, low profit is dangerous. If there is a problem your customer will hold any monies due you to pay for it. They don't fall under the CFR's/hold a bond. If you're factoring you'll be paying that back. Buy an all inclusive policy and it will cost 2-3% of gross sales.
     
  6. dog tired

    dog tired Bobtail Member

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    Oct 9, 2020
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    You
    You will need a tremendous amount of capitol to start your own brokerage. Had a relative and a friend try to start a brokerage and found themselves hiding from a lot of PO,D drivers because customers are very slow to pay and truckers need their money fast. Good luck.
     
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  7. Ericiot

    Ericiot Bobtail Member

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    Oct 10, 2020
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    very solid reply, thanks. I got my foot in the door through an old coworker that ended up working for the guy. His company isn’t huge or anything, but it was all done in a small office building with about 20 people. He just came off kindof strung outish, and the way he handled that situation wasn’t really that great. If i were to give the agent thing a try, i feel like I would still be day dreaming about how much better I would want the process to be handled. There unfortunately seems to be a broker vs driver tension from time to time when I’m skimming through boards. I just want to somehow moreso streamline everything, remove additional fees, and get rid of the middle man of the middle man (factoring). An easier process for all parties involved, and more money in the drivers pocket. And of course if a driver I’m working with is ever passing through, lunch is on me lol
     
  8. Lite bug

    Lite bug Road Train Member

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    Who is a driver? How do brokers work with drivers? How is a broker going to be sure a driver is going to retain more income? I may be missing something, I believe a broker works with a carrier to move freight.
     
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