Home > Forum > Who Cares What The Broker Makes Anyways?

Who cares what the broker makes anyways?

Jan 04, 2017 at 12:57 PM CST
+ 2 - 2

Who cares what the broker makes anyways?

While I personally may feel that freight brokers commissions need to be regulated more like a real estate brokers. It is not, so they are allowed to glean from a load multiple times from multiple brokers. The gooberment does not care as long as they get their share. The gooberment on the other hand loves to over regulate us truckers. It is our job to know how to be successful even with all the rules that are seemingly set against us. There will always be a market for those that have the desire to succeed, even if that market is black in nature.

Who cares what the brokers make anyways, it is your job as a small business owner to know your numbers and your profit margins. There is no magic rate per mile that will work in every segment of our industry. I will guarantee you that operating on a profit margin will work in all segments. This is how the shipper works, this is how the broker works. Why is this not how the trucker works?

I and others at the Independent Carrier Group only care about our profit margins. This is why we are still in business. If we focused on a particular rate per mile, that might not work for the next business model. By focusing on our profit margin we can all be successful in our little kingdoms without having a detrimental effect on our market and each other.

Like I tell everybody about the FMCSA and DOT it is their job to catch us and ours to not get caught.

Here is the game between us and the brokers, it is their job to make as much as they can and yours to make as much as you can. If the load falls below your established profit margin then you should quite simply not haul the load. You are taking a greater risk hauling their freight than you will hauling air to the next good market.

Learn how to stand pat with your margins and always remember that some profit is always better than no profit. Do not feel sorry for the shipper/broker, they are not your friends they are business opportunities Do not do favors for them, as often times they will never repay the favors, favors are only to be given to close trusted friends and allies. They will not be loyal to you after your haul that load for them, so why should you think that being loyal to them will pan out.

Good customer service is what is expected of all of us, that is what they hired you for. Thinking that supplying good customer service is going to land you the account is often times overstated. You as a smaller carrier need to accept the fact that you are a gap fill widget. You generally do not have the capacity to service the customer's full needs. If you believe that you do, then you often times will find that you will over extend yourself and end up losing that customer as well as other opportunities. If you want to be involved in bigger contracts then you should saddle up with an honorable broker or larger carrier that has such opportunities for you.

The broker does not care what you are making they only care what they are making. So I will end with the original question.

Who cares what the broker makes anyways?

Replied on Thu, Jan 05, 2017 at 09:33 AM CST
I for one don't care what the brokers make! I do care about the fact that some brokers come into our home area, call us for rates on load using ficticious locations, then cut our rate to the bone on loads we do direct and then call to ask if we will haul the loads. I also get emails from brokers SECONDS after I get an email from a direct shipper with the same loads copied and pasted from the direct shippers email on to broker letterhead. I just don't see why the this industry has to be regulated to hell? I have been in the trucking industy since 1985 and have seen a lot of changes. I also rode with my brother since 1978 and really saw changes since then.

I have no problem with brokers as long as they go out, create customers, get loads themselves for a FAIR price and pass them on. We work with brokers all the time and use the good ones over and over and never use the bad ones.
Replied on Thu, Jan 05, 2017 at 11:19 AM CST
I care when you do a government load and find out that the broker is keeping 50% of the load. I guess some people don't have a problem with being thieves and most brokers are liars and thieves. We have worked with a few that are decent and honest, but they are far and few between and it seems like it is getting worse. Oh well, I guess that is trucking nowadays.
Replied on Thu, Jan 05, 2017 at 03:17 PM CST
Ed, you hit the nail on the head here.

Years ago, I used to get all excited when a 50 load list would drop in my inbox, I'd post it out there and try to make a couple bucks, only to take calls and find out that the customer has them posted as well on the load boards. Its a complete waste of time. Sure I still get them and give the list a quick once over, but I only ever act on a spot load if I know of a carrier looking for that specific lane, and even then the rate is rarely what is fair or worth the time. I've also found that these are the type of loads with unexpected issues, long load times at FCFS facilities, we see this a lot in the grocery lists that we get.

At the end of the day theres no money to be made anywhere on these loads. They're low priced to begin with to us the broker, to try to give it to the carrier and negotiate an extra $50 out of the customer even is just a complete waste of time.

I'd rather get hung up on 50 cold calls in a row than deal with spot loads anymore.