Everest Freight & Logistics
- Thread starter pitbull99
- Start date
2
5
Payment
I hauled 1 load for these guys. Went to the office in St. Laurent and picked up my money no prob. What I did see was eight or nine people working in one office and a tote board on the wall with the following info:
employees name
how much frieght they sold for the week
how much the employee kept and what percentage the company kept
The top person on the board was keeping 45% of the money. Now I understand that everyone has to have a piece of the pie but that's just gouging at its finest. Needless to say that was the only load I hauled for them.
I hauled 1 load for these guys. Went to the office in St. Laurent and picked up my money no prob. What I did see was eight or nine people working in one office and a tote board on the wall with the following info:
employees name
how much frieght they sold for the week
how much the employee kept and what percentage the company kept
The top person on the board was keeping 45% of the money. Now I understand that everyone has to have a piece of the pie but that's just gouging at its finest. Needless to say that was the only load I hauled for them.
Last edited by a moderator:
10
Did they pay YOU what YOU wanted to be paid? Or did they give you a lowball rate and you took it anyway?
If they paid you a fair rate, market value and what you wanted to be paid, then who cares what rate they billed their customer? I couldn't care less if a broker charges 1000% markup, as long as I get paid what I wanted, then all is good in my book.
That and paying in a timely fashion of course.
30
Good point mytruckmyrates. Is it "sour grapes", or frustration that they didn't rate their services properly in the first place? I am happy to pay $1000 for a weeks holiday at an all-inclusive resort, even though I know that the travel agent is making a profit on that sale. That's what a re-seller of any service does.
5
Broker Gouging
No there's no sour grapes here. Evidently you didn't read my post. I said everyone deserves a piece of the pie. I just think it's an unethical business practice to take that kind of a margin and see how much of the trucker's money you can keep for yourself. Even Sheldon wasn't that bad. It's hard enough to make a living out here as it is and I've been here for over 30 years. My opinion.
No there's no sour grapes here. Evidently you didn't read my post. I said everyone deserves a piece of the pie. I just think it's an unethical business practice to take that kind of a margin and see how much of the trucker's money you can keep for yourself. Even Sheldon wasn't that bad. It's hard enough to make a living out here as it is and I've been here for over 30 years. My opinion.
Last edited by a moderator:
10
Gouging when brokering
I think broker gouging sounds wrong. If brokers undercut carriers then they can't gouge. But that's not my comment.
It has been said that you can't pay too much for quality. Do you buy $20 shoes that last 3 months or do you spend $150 for ones that last 3 years? It's all relative. If a customer realizes the quality of work that you do they will pay a premium to you. It would be cheaper in the long run for them. No spending time finding a carrier, no damages on a regular basis, etc. etc. If I can give the freight to a partner carrier for the rate he wants, the profit I make is irrelevant as long as the service to my customer remains the same. It is admirable to be concerned about the customer, but it shouldn't be your focus. Your bottom line should be your concern.
I think broker gouging sounds wrong. If brokers undercut carriers then they can't gouge. But that's not my comment.
It has been said that you can't pay too much for quality. Do you buy $20 shoes that last 3 months or do you spend $150 for ones that last 3 years? It's all relative. If a customer realizes the quality of work that you do they will pay a premium to you. It would be cheaper in the long run for them. No spending time finding a carrier, no damages on a regular basis, etc. etc. If I can give the freight to a partner carrier for the rate he wants, the profit I make is irrelevant as long as the service to my customer remains the same. It is admirable to be concerned about the customer, but it shouldn't be your focus. Your bottom line should be your concern.
Hi guys/gals,
Just my 2 cents, and in no way in defense of these bottom-feeders...but I had the misfotune of working at a place many years back that sounds similar. Is it possible that you are misinterpreting that 45% may be the agent's portion of the profits, and not the margin of profit on the total revenue? Eg: they get a load (from a US broker obviously) that pays $1000...they pay carrier $900 and keep $100. Usually the way these people operate, is they give the 'agent' 30-50% of the profits, so 45% is in line. This scenario shows 10% total profit, with the agent keeping 45% of it (or $45.00). I only say this because Everest is not made up of brain surgeons and in this day and age, very few brokers over-pay by 45% for long without getting wind that they can pay less. Anyway, like I said, not a defense for what they do, but maybe the $$ isn't as big as you are thinking.
Just my 2 cents, and in no way in defense of these bottom-feeders...but I had the misfotune of working at a place many years back that sounds similar. Is it possible that you are misinterpreting that 45% may be the agent's portion of the profits, and not the margin of profit on the total revenue? Eg: they get a load (from a US broker obviously) that pays $1000...they pay carrier $900 and keep $100. Usually the way these people operate, is they give the 'agent' 30-50% of the profits, so 45% is in line. This scenario shows 10% total profit, with the agent keeping 45% of it (or $45.00). I only say this because Everest is not made up of brain surgeons and in this day and age, very few brokers over-pay by 45% for long without getting wind that they can pay less. Anyway, like I said, not a defense for what they do, but maybe the $$ isn't as big as you are thinking.
Last edited by a moderator:
10
hiwaykw05, I did read your post and I understood your jist.
My point is, if I say to the broker I want $1000.00 to do your load, and he agrees and sends in the confirmation for $1000.00, then what do I care what he is charging his customer? He has agreed to the rate that I wanted, that's all that matters to me.
Too many carriers spend too much time "thinking" about how much the broker "might" be making, and not enough time refusing cheap freight.
On the other hand, if you said you wanted $1000.00 and the broker says he can only pay $750.00, then you find out he had 45% on it, I could see you being upset, but you had the option of saying no to the $750.00 in the first place.
But I do like boss's analogy of it all, that makes more sense than 45% of gross.
My point is, if I say to the broker I want $1000.00 to do your load, and he agrees and sends in the confirmation for $1000.00, then what do I care what he is charging his customer? He has agreed to the rate that I wanted, that's all that matters to me.
Too many carriers spend too much time "thinking" about how much the broker "might" be making, and not enough time refusing cheap freight.
On the other hand, if you said you wanted $1000.00 and the broker says he can only pay $750.00, then you find out he had 45% on it, I could see you being upset, but you had the option of saying no to the $750.00 in the first place.
But I do like boss's analogy of it all, that makes more sense than 45% of gross.
30
Those boards are meant as a way to measure agents against each other. And in the pure broker world, where strict commission jobs are widespread, the rule is between 35% to actually 60% -- depending how active a role the agent takes in the transaction? Bringing the freight and dropping in OPS? Or covering it too? Or in some cases, they pay their underlings out of their cut.
There are very few instances where freight has 45% margin on it ... norm is between 6 and 15% depending on whether TL/LTL and invoice amount.
There are very few instances where freight has 45% margin on it ... norm is between 6 and 15% depending on whether TL/LTL and invoice amount.
This is not a "hobby" of ours, we are all in it to make a buck.
I agree with previous posts, as a carrier if a shipper gives me a load and makes a bundle of profit selling to the consignee it is a good thing. That way he is in a better position to pay my inovice at a rate that I agreed to.
Why is it a bad thing when a broker makes a big profit?
I would rather him make some money than sell it for less than he is getting and not be able to pay me.
If the rate is not enough, simply do not take it.
I agree with previous posts, as a carrier if a shipper gives me a load and makes a bundle of profit selling to the consignee it is a good thing. That way he is in a better position to pay my inovice at a rate that I agreed to.
Why is it a bad thing when a broker makes a big profit?
I would rather him make some money than sell it for less than he is getting and not be able to pay me.
If the rate is not enough, simply do not take it.
5
Brokers
I agree that a broker does have to do something to earn the money. But lets not put the cart before the horse - are we with the trucks & trailers not entitled to most of the money since we have most of the investment?
I agree that a broker does have to do something to earn the money. But lets not put the cart before the horse - are we with the trucks & trailers not entitled to most of the money since we have most of the investment?
Last edited by a moderator:
Let's face it....you get what you negotiate! Regardless of respective costs, if you can earn it you do. Sometimes you make more than other times but one should not have to apologize for being profitable when they are in business for themselves.
10
Matter of interest
I wonder what margin the large 3pl logistics providers work on.
Please exclude CH Robinson from the equation.
I mean Excel, Schenker as well as most of the customs brokers?
I guess there must be some sort of sliding scale. When you have a 50 million a year account the percentage must drop?
I wonder what margin the large 3pl logistics providers work on.
Please exclude CH Robinson from the equation.
I mean Excel, Schenker as well as most of the customs brokers?
I guess there must be some sort of sliding scale. When you have a 50 million a year account the percentage must drop?
10
Brokers of Freight
hiwaykw05, it seems that your posts have changed tune a bit. I'm not going to say you are wrong, just that your perception may be a bit off. I dare say this with the fear of being chastized but no one is entitled to the money. There are several posts with scenarios that make sense. It boils down to this, if you are offered a load and you give the person brokering the freight a price and get it. you received everything you are entitled to. Any other amount of money is irrelevant. We all need to focus on our business and make sure it is profitable without ripping off other carriers. Paying you what you wanted is not ripping you off, is it?
Again, in the fear of being chastized, do you ask the broker how much they will profit on this load and do they ask you that same question? Do you negotiate a rate for the move or the profit you will each make?
hiwaykw05, it seems that your posts have changed tune a bit. I'm not going to say you are wrong, just that your perception may be a bit off. I dare say this with the fear of being chastized but no one is entitled to the money. There are several posts with scenarios that make sense. It boils down to this, if you are offered a load and you give the person brokering the freight a price and get it. you received everything you are entitled to. Any other amount of money is irrelevant. We all need to focus on our business and make sure it is profitable without ripping off other carriers. Paying you what you wanted is not ripping you off, is it?
Again, in the fear of being chastized, do you ask the broker how much they will profit on this load and do they ask you that same question? Do you negotiate a rate for the move or the profit you will each make?
30
One thing is for certain ... margins used to be larger on the brokerage side. When the carriers are squeezed, the brokers are too. When there is more demand and more need for us, we differentiate ourselves better and make better margins.
There is no real way of measuring what is fair in aggregate for margins on freight because continuous moves which require little follow up have a lower cost of sale than say, distribution work or the kind of funky stuff associated with jobsites, oversize/overdims, and one-offs.
It's all a matter of where the brokerage company positions itself, and to a certain degree where the actual sales rep positions him/herself.
There is no real way of measuring what is fair in aggregate for margins on freight because continuous moves which require little follow up have a lower cost of sale than say, distribution work or the kind of funky stuff associated with jobsites, oversize/overdims, and one-offs.
It's all a matter of where the brokerage company positions itself, and to a certain degree where the actual sales rep positions him/herself.
Everest Freight & Logistics
No big surprise, just letting everyone know that nothing has changed
Nash is really good at getting a "price reduction" by quoting a price for a certain amount of freight, then the load grows and he can't be reached to revise the confirmation. Or he finds some excuse to short pay and then gets mad when confronted/busted. Ya, how dare we expect to get paid the full amount.
The warning continues on Everest Freight...put on your Do Not Use list!
No big surprise, just letting everyone know that nothing has changed
Nash is really good at getting a "price reduction" by quoting a price for a certain amount of freight, then the load grows and he can't be reached to revise the confirmation. Or he finds some excuse to short pay and then gets mad when confronted/busted. Ya, how dare we expect to get paid the full amount.
The warning continues on Everest Freight...put on your Do Not Use list!
10
Heads up
Thanks for the heads up .
Just did two shipments for them. The freight did grow by a skid on one of the ltl loads, but I had no problem getting a revision.
How fast are they at paying?
Thanks for the heads up .
Just did two shipments for them. The freight did grow by a skid on one of the ltl loads, but I had no problem getting a revision.
How fast are they at paying?