Share what you know about dealing with brokers

Being ethical, regardless of contract, will carry you far. Forwarded a load that we would not cover because of rate to another local driver. Found out Wednesday while loading he was trying to undercut rates on what I already haul exclusively. HE WILL NEVER GET ANOTHER REFFERAL FROM ME. And I know what he will haul for and have a lot of loads that fall between his rate and mine. And this customer will not call him unless desperate. Her words "I thought this was a friend?"

 

There is a company that I have done business for many years. The only thing that even resembles a written contract consists of about 2 sentences. It states that I agree to keep insurance and that he agrees to pay me. No minimum is mentioned nor is the percentage that he will pay me noted. There is also not a back solicitation clause in the agreement. Due to the relationship I would never attempt to go in and solicit directly any shippers for whom he has referred me. He takes a flat 10% off the top and he will write me a check the same day he receives my bills. If I happen to hand deliver them, I will have a check in my hand in a matter of minutes.

I also have a handful of brokers with whom I have done business over the years that I will pick up a load without having a written rate confirmation in hand. We discuss the terms and I have never had a problem with them. There are only about 3 or 4 that I would do business in this manner. They would also send a rate confirmation without worrying about it if I don't send the signed rate confirmation right back to them.

There has always been a certain level of trust that is required in this business. It comes mostly from those who have been around for many years. If you don't intend to keep your word or honor your agreement then it would be better to not sign it. Although this is a large industry, it is a very small community in many ways. It can take a lifetime to build a reputation but only a single incident to destroy it.

 

Ok Im still new to this finding my own loads thing but if I call a broker about a load and he tells me its paying $2.00 a mile @ 1500 miles is he including fsc? How should a conversation go if I called on a load? ( what to say and what not to say)

 

When a rate is quoted by a broker then that is what it pays, including the fsc. You may be able to negotiate a higher rate, but that is all it pays. Again, don't worry about collecting a fsc. The rate is the same whether it pays $1.50+ $0.50 fsc or $2/mile. If you can't live with the rate offered, then find a load from another source that pays what you need. The fsc is mostly important when you are tied to an annual contract. It is designed to protect the rate.

 

Think I will join you on this one.

 

Do you always stereotype this well...or was this a first?

 

Not all brokers make that amount per load though, some make more, some make less.. That's a big assumption made on your part; you have to keep in mind some brokers rip the $h!t out of people and there are honest ones out there, just gotta find them.

 

Everybody does things differently. Some take more and some take less. I saw the same o/d load posted by 2 different people last week and I know they were the same thing because size, pickup and destination were the same. $600 was the posted difference. A flat 10% would be great but get what makes you money and stop thinking the broker is sticking it to you. They might be but what really are you going to do about.

 

It only matters to me what the broker makes when they tell me "I only have X in it" to keep from paying you an extra $10-20. Then you find out they have a couple hundred more.

Broker doesn't have to tell me what they have in it. But if they do and they lie, then what else are they willing to lie about.