Question for Brokers " What do brokers consider a fair rate per mile for freight?"

Discussion in 'Freight Broker Forum' started by robbiehorn, Feb 4, 2014.

  1. rank

    rank Road Train Member

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    I keep hearing that but I have yet to see anyone post the law when asked to do so. Could you please post the law that says double brokering is illegal.
     
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  3. Green-eyed Lady

    Green-eyed Lady Light Load Member

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    Congrats on you doing what was needed to change careers.
    It sounds to me that you are being as fair as is possible and still stay in business.
    My statements about Europe and Beemers and Prada are for those types of Brokers whom I've crossed paths with in my life and they have never driven a truck and they do only book a couple loads a day. This does not apply to you, but I was hoping that one of those types would respond to my post.

    It's hard to be cooped up indoors when one has experienced the open road, and yes, getting a load booked shouldn't require that much effort, but I know it does. I honestly don't know how O/O's can do that and haul the load also.

    I appreciate your integrity and your taking the time to lay it out for me that there are brokers like you who try and have our back out here.

    I would like to know what kind of arguments you hear from shippers when you try and adjust rates upwards.

    Keep up the good work.
     
  4. Green-eyed Lady

    Green-eyed Lady Light Load Member

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    If they get a salary they are only getting a 2-3% commission.

    Real Estate agents get 6-7% of whatever the property sells for, but they generally have to split that $$ 4 ways--Listing Broker and Selling Broker each take 1/2 and the Listing Brokers Listing Agent gets about 40% of his 1/2, and the Selling Broker gives 40% of his 1/2 to his Selling Agent. (There are many fingers in that pie and the expenses are not shared equitably by the parties involved).

    Dead miles = high rates = low commissions. Thanks for the heads-up on that paragraph.

    So if carriers would balk at low rate freights, then the shippers would have to raise what they pay? That's what I was thinking.
     
    Last edited: Mar 17, 2014
  5. Green-eyed Lady

    Green-eyed Lady Light Load Member

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    I agree. He should be the one teaching others how to do it so they would learn his ethics.
     
  6. rank

    rank Road Train Member

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    Last time I knew, there was no government mandate that set salary/commission ratios. There is no set formula. The employer offers whatever compensation package they can while still attracting people that can do the job. Sort of like a free market system. Kinda like the broker/truck arrangement too.
     
    truckon Thanks this.
  7. rollin coal

    rollin coal Road Train Member

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    As competitive as this business is I can't imagine there's a large majority of brokers out there taking vacations to Europe on a regular basis and purchasing expensive flashy cars with cash. Of the ones who are they're on top of their game and that's the reward almost anyone who takes the risk seeks. The truth is, much like trucking where everyone from the outside tends to think it's big bucks and easy money, is you end up having a lot of people attracted to brokering for the wrong reasons (mainly easy money) so they normally throw away hard earned cash on fly by night brokerage schools (so familiar like the cdl churn mills for unsuspecting sold on dreams of big bucks paid vacation sightseeing around the country) and then the reality of the business surprises them. No-one gives money away. Top producers and earners typically have a passion for their chosen profession - the fact they reap nice rewards is just a benefit of that passion. Not everyone will win. Unlike public schools where 1 kid in a class gets first place in an essay contest, another 2nd, and 30 other kids all get 3rd place to make them feel good there are always losers. And the best lessons in life come from losing.
     
    22dragoo Thanks this.
  8. skateboardman

    skateboardman Road Train Member

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    to bad the op got banned, I would love to ask him what "HE " thinks is a fair rate. I wonder if he has a clue to his cost of operation, his intended profit, thus giving him a minimum per mile to reach his goals. I would guess not. just like many who think it is the brokers or companys job to give them a rate to keep them in business, instead of knowing that number and running in lanes and areas for rates that will keep them profitable.
     
  9. trees

    trees Road Train Member

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    It becomes a violation when it violates the terms of the contract, or service agreement. (Rate confirmation) Most rate agreements contain language that prohibit double brokering...I know ours contains a forfeiture clause, get caught double brokering and you can forget payment....

    It's a civil matter, not criminal....unless there's fraud involved
     
  10. Green-eyed Lady

    Green-eyed Lady Light Load Member

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    Okay, okay...UNCLE!
    I started by replying to a poster who was saying the brokers keep all they can get.
    I've learned that's not necessarily true.

    The Europe and beemer comments I made were to illustrate the brokers I have known in my life and how they operated and then I get out here in the truck and see some really desperate people. I didn't like the imbalance.

    In my original posts I did state I was a numbskull trying to learn AND that I was sincerely trying not to start any flames and I meant it.

    Gonna back out of the room now 'cuz I got my arse whooped. :sad: :bootyshake::smt079
     
  11. rank

    rank Road Train Member

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    You violate the contract when you miss a delivery appointment too but it's not correct to say it's against the law. Suffice to say that nobody is going to jail or getting fined by Johnny law for double brokering.
     
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