Transparency of Broker's Cut, Does It Exist?

Discussion in 'Ask An Owner Operator' started by Renegade92, Jan 7, 2023.

  1. wichris

    wichris Road Train Member

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    So when you hire a general contractor to build your house you demand to know how much he pays each sub contractor?
     
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  2. Jubal Early Times

    Jubal Early Times Road Train Member

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    This thread is hilarious
     
  3. wichris

    wichris Road Train Member

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    Cheaper than a netflix comedy
     
  4. Kenworth6969

    Kenworth6969 Road Train Member

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    Even if there's more loads than trucks if the trucks would stop agreeing to hauling for next to nothing then it would be beneficial for all of us.
     
    Last edited: Jan 13, 2023
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  5. Kenworth6969

    Kenworth6969 Road Train Member

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    When a shipper hires a broker to find truck to haul their load wouldn't the shipper like that know what the truck is actually getting paid?
     
  6. Long FLD

    Long FLD Road Train Member

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    From the shipper’s point of view they’re not just paying to have their loads hauled. They’re also paying for the convenience of not having to deal with thousands of truckers and not having to check to make sure they have insurance and not having to send money to 1000 different people for hauling 1000 different loads. They probably feel there’s value in that for them so using a broker is more than moving loads from A to B.

    They use brokers because it makes their life easier, same as how truckers use brokers because it makes their life easier.
     
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  7. TallJoe

    TallJoe Road Train Member

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    Sure, I could but we are trying to determine the pros and cons of the brokers transparency and the meaning of it.

    Yes, it is impossible to determine what "making too much" means exactly. Therefore, the rate negotiation should be between the carrier and the shipper. And often enough, I hear that this is the case, when a broker agent calls the customer to see if they agree to an offered rate. That's exactly how it should be.

    You can charge the shipper whatever fee you want - that's none of my business - but you don't tell the shipper that I - the carrier - need $1000 to move it and then take $400 for yourself and tell me that $600 is all you got. You tell them, that I need $1000 but that you also need $400 from the same load...and I wonder if 1. you would dare, and 2. how they would like it.
    That's transparency
     
  8. wichris

    wichris Road Train Member

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    Why would they? They're fine with what they paid the broker
     
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  9. wichris

    wichris Road Train Member

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    If the customer is fine with paying the broker X there is no reason to care what they pay the truck.

    All these arguments go back to simply get your own customer instead of deciding how much someone else makes
     
  10. Jubal Early Times

    Jubal Early Times Road Train Member

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    I just have one thing to add to the conversation. If you are so bent out of shape about what a broker makes then you fail in negotiations. You are the cheap truck and I suspect you know this. That’s why you’re angry at brokers. Really you are angry with yourself and your failing business.

    carry on