Share what you know about dealing with brokers

This ought to be good!

There's be guys here "professing" that brokers regularily take 50% of the gross and 100% of the FSC.

I'm setting up my cooler and bag of popcorn. Better entertainment than I would pay for.

 

First, don't worry about what the broker is making. Just life it is none of there business what you are making, I it is none of yours what that are making. You need to be good with your rate. Don't be one of those drivers that wastes time on what you can't control.

Rate negotiation is all about remembering that the whole conversation is about gathering information and negotiating. A question like "trying to get your driver home" is a probing question by the broker to see how desperate I am.

Regardless of the true answer, how would you answer this?

And your answers and questions need to sound like a flow of a conversation, if possible (sometimes broker is too busy for more than basics.) But you will see early on the difference between an interrogation and a conversation. Be polite, be funny and remember that the insulting rate is not personal.

 

Account near me was just lost by one of the big carriers because all loads are no tarp but they tarpped everything. $150in contract for tarping and paid drivers 50.

The smart driver checks before doing what dispatch says.

 

To answer your first question, I know of brokers who will only make $25-50 per load and others who will take 50% of more of a load, providing they can get away with it. Each broker is different. If the load is cheap then there is a good livelihood that the load has been double or triple brokered or the broker is taking too much of the line haul.

Getting a better rate will depend on your negotiating skills. If a load is going to a bad freight area then the broker may be willing to pay a higher rate to move his load. The difficulty of a load, multiple stops are all reasons why a load should pay more. Having a good reputation and safety score are also reasons why someone would pay a better rate. If you haul a lot of freight for a particular broker, they might pay you a higher rate or offer better paying freight to keep you as a primary carrier. Each situation is different. I have a minimum haul rate, especially to bad freight areas. I won't take a load for under my minimum. Whether I get 100% of the fsc really doesn't matter to me as long as I get the rate that I want. It is only smoking mirrors when it comes to the fsc. It is still the same rate whether the fsc is broken out or is included in the rate quoted. The only time a fsc should be considered is when you have a longer term contract and it is used to deflect wide fluctuations in fuel prices.

 

That can get a bit difficult to negotiate.

If a shipper is paying for "exclusive" use of your truck and they seal the door(s) then what? What happens if you are detained making your additional p/u or del and it puts your primary shipment late?

If the broker is insisting that the truck is "dedicated" or "exclusive" then the rate must reflect this. If it doesn't then you either leave the freight behind or renegotiate the rate.

 

If I take a load that includes "exclusive use" of the trailer, then I don't put anything else on the truck. If I make an agreement then I stick with it. If something happens and you are found out then it could cost much more than you would have gained by putting a partial on the load. I believe that when I give my word it should mean something. If I don't get the rate that I need with a load and they want exclusive use of the truck then I either negotiate a better rate or don't take the load. I have built up a good reputation in this business over the years. People with whom I have done business know that when I give my word that it means something and that I will do what I promise.