[rodpiper]

Originally Posted by Rev.Vassago

Do you ask the shop that sells you parts how much they are charging you for the service with their markup?

NO. but when you buy it you will know how much you paid for it with brokers you never know how much they charged you for a load.

[chris1]

Originally Posted by rodpiper

NO. but when you buy it you will know how much you paid for it with brokers you never know how much they charged you for a load.

That makes no sense. You don't know how much they made. You agrred to a priced and purchased the item. When you take a load from a broker you agree to a price to haul it.
It's been a long time since i held a gun to someones head and told them they had to take the load at the price i offered.

[Rev.Vassago]

Originally Posted by rodpiper

NO. but when you buy it you will know how much you paid for it with brokers you never know how much they charged you for a load.

I wasn't aware that a broker "charged" a motor carrier to haul a load. And here I thought the motor carrier agreed to the rate at which they were willing to haul the load. Are you saying that brokers are making you agree to a rate at which you're not willing to haul it? If so, why on earth are you hauling the freight at a rate you're not willing to haul it for?

[moe]

Although I stated before I used over 400 brokers in 11 years,like anyone in this business I had 4 or 5 brokers I used on a steady basis and became somewhat friendly with. I know for a fact some times they had to pay more to a truck than the load paid gross, not because it was cheap to begin with but truck availabilty was down and the load had to go, so they had to make the difference where and when they could. I don't see anything wrong with that. Besides, some have this illusion that brokers don't earn thier money, personally you couldn't pay me enough for the headaches. In the end they are a great service to the industry, there are a few I wouldn't mind taking a baseball bat to, but then again there are a few truckers I know I wouldn't mind knocking up-side the head either.

[GMAN]

Brokers have made it possible for anyone with a truck to get a load. Some are honest and others are not. In defense of brokers, they also have their own problems. Things they have to deal with include owners or carriers who commit on a load and never show up or call. How about the carrier who takes a load and disappears or decides to take a few days at home with a hot load? They may also need to worry about paying the truck before they get paid. There are some brokers who rape the rates, but I know of some that take a flat percentage and make a fair profit while giving the truck a good rate. The broker doesn't usually work for the truck. Some don't work for the shipper, either. They work for themselves. They commit to move a certain number of loads at a fixed price. It is up to them to find a truck and still make a profit. Often, a broker will have a penalty for not having a truck for all loads for which he committed.

It isn't a perfect system. There are things that I would like to see somewhat differently, but I see no need to bring in the government to regulate things. The government gets in our business enough as it is. I prefer dealing with things myself rather than having big brother interfere.

[Hoyt602]

Brokers exist because of the enormous amount of carriers to choose from. After deregulation in 1981, anyone can apply for and obtain interstate authority. According to ATA figures, something close to 500,000 motor carriers exist (probably less after ths depression). How does a shipper choose anyone best carrier. The vast majority of carriers are comprised of fleets of 6 trucks or less. Look in any truck stop and you'll see the variety of names on doors. This will validate the sea of choices available. Most shippers do not want to keep up with many different carriers. Brokers are making more inroads in this economy as shippers look for choices. The smart broker doesn't have huge margins because eventually someone will talk and if their shipper customer finds that they are taking a huge margin then they may no longer be their customer, not to mention, treating the carrier well will insure that one has carriers available when freight returns.
Often, people that cry for regulation are unable to cope or change with market forces. If you feel you are being taken advantage of then: 1. stop hauling for that broker/shipper. 2. do something about it by finding your own direct customers or a new broker. Opportunity is always present in any economic condition. You may have to tweak your model to survive the downturn and position yourself for the recovery. Regulation prohibits growth and spurns profits for all. Who would start any business knowing their income would be capped. Either we work in a free supply and demand driven system for all, or we will become a socialist society where you may not be allowed to be a truck driver. Regarding transparent transactions, great! If you say a broker cannot take a gross profit of more than 10% meaning they have to cover all their costs, bond, office salaries from that, then could you cover your salary at 10% above what fuel costs and maybe we'll let you slide the truck payment in there.
I've raved long enough. I work on both sides of the fence. I still drive and help market for our brokerage. I've been taken by brokers but look at that as an opportunity and a lesson. Maybe it all doesn't matter since our country is fundamentally changing. Good night comrades!

[GMAN]

Originally Posted by Hoyt602

Maybe it all doesn't matter since our country is fundamentally changing. Good night comrades!

We seem to have a large group in this country that wants to embrace socialism. They would prefer government control over everything rather than a free market. They would trade their freedoms for what they perceive as security. In reality, it is freedom that provides security. A free market is part of that freedom. Under socialism you may not work in the profession you want. Under socialism the state or government may decide how much you earn. Those who have sacrificed so much for the freedoms we have enjoyed would not believe or understand what has happened to this country.

Under a free market we have the freedom to succeed or fail. It is entirely up to us as to what we do with our lives. If this administration succeeds in bringing in taking over our healthcare we will not have the freedoms that I grew up with. The government has already taken over 2/3 of our car industry and the largest banks and insurance company in the U.S. Now, some of you would prefer that the government take over a segment of the transportation industry. Competition keeps prices in check. When the government runs industry those industries become bloated with beauracrats and party favorites. Just look at how many car dealers were cut loose when it was found that they supported the wrong party. Once the government gets their head in the door, it is a short step to total control. I don't want the government to dictate how much I can make. Nor do I want the government to decide how much a broker or my competitor can earn. If I don't think that I am earning enough from a brokered load then I am free to find another broker or shipper and negotiate a price that works for me.

We are in a depression. People are scared. We will come out of this depression. If government gets involved in this business then we may not survive. It is questionable whether those industries can survive with government control. There have been other socialist countries who have taken their hand at making cars and controling major segments of their economy. Most have tossed away the socialist ideas for capitalism. Doing so has made them prosperous.

[Hoyt602]

Right on the money GMAN! Whatever choices or freedoms we give to the government we will never get back. We are in extremely dangerous territory right now. People that think everything will go along as the status quo are mistaken. The so called "blue dog" democrats are the only check and balance we have in place right now. We have to sweat this one out for two years until the midterm elections take place and maybe we can get some more centerism in Congress. More taxes equals less choices, and less choices brings us further into a slave society. One good thing will come of all this. We will no longer have to worry about illegal immigration. Der fuhrer will mess up this country so bad no one will want to come here. We can call it the United Socialist States of America.

[GMAN]

It is my hope that enough people will wake up and start to get involved before it is too late. These politicians are pushing these programs through so quickly that our representatives are voting for them without even reading the bill. They want to pass these bills before the public has time to think about what is really happening and what these massive spending bills entail. These representatives are being paid a lot of money to look after our interests. They have failed miserably. We need to start having recalls on those who are not doing their jobs. I would like to see retirement benefits totally eliminated from ANY elected official. They don't need retirement benefits.

[Creek Jackson]

Originally Posted by chris1

It's been a long time since i held a gun to someones head and told them they had to take the load at the price i offered.

Chris, could we hear the details about the above instance? :rofl: