Fuel Prices
- Thread starter Paul S
- Start date
2
The problem is all of the brokers and logistics are fighting over the loads If we worked for the shipper it would be a lot better
2
jack it up
everyone needs to reset the standard for pricing. if everyone puts forth a price increase people will have no other option but to pay the new standard of price which is keeping with the high fuel costs. however the likelyhood of this happening is pretty low...just a thought tho
everyone needs to reset the standard for pricing. if everyone puts forth a price increase people will have no other option but to pay the new standard of price which is keeping with the high fuel costs. however the likelyhood of this happening is pretty low...just a thought tho
10
Brokers
Why are all the problems of the industry blamed on brokers?
Brokers have the same problems that trucking companies have with fuel prices and customers not wanting to pay them. Yes, we don't experience it on the highway the way carriers do, but our good carriers demand compensation for it and we have to pay. We have customers who go bankrupt and don't pay us. WE STILL PAY THE CARRIER! We have customers who string us out for 60-90 days, WE STILL PAY THE CARRIER!
I understand there are some slimeballs out there, but stop doing business with them. They give everyone a bad name and can only stay in business if you take their freight. Guess what, they only have the business because they quote low prices and you take it! If you don't take their freight, it still has to move. I guarantee you 3-4 hours later a more reputable broker will call you with the same frieght at a higher price. Stop supporting the slimeballs.
As a broker if we happen to bill $200 more than we pay the carrier, understand, this is not "pure profit" as carriers seem to think. We have to pay for an office, employees, computer systems, etc. Most costly is our sales people! Do you have any idea how much it costs to hire, train, pay for an expense account, car allowance, etc. for our sales reps to go out an FIND this business. Do the math. Just to cover a sales reps salary, $60,000 with benefits, plus car allowance, say $8,000 and say $1000 per month, travel, dining out with customer etc. your talking $90,000. Now how many loads does he have sell making $200 just to pay for him/herself.... 450 loads! Just to pay for the sales rep. That doesn't include the dispatcher, the administration people, telephones, lights, heat, rent, etc. or any profit! Guys, we have a business just like you do with revenues, and expenses. We have to make a fair profit to cover expenses just like you do.
When you take all this into account, are not brokers a better investment than going out and hiring four or five sales reps who may or may not generate any business? Believe me I've been hiring sales reps for years, it's not so easy. Brokers provide a low cost sales and markeing service to the carriers. Why can't we all just get along! We're in the same business, we should be working together to support each other, especially in this difficult market climate we are ALL facing right now.
Why are all the problems of the industry blamed on brokers?
Brokers have the same problems that trucking companies have with fuel prices and customers not wanting to pay them. Yes, we don't experience it on the highway the way carriers do, but our good carriers demand compensation for it and we have to pay. We have customers who go bankrupt and don't pay us. WE STILL PAY THE CARRIER! We have customers who string us out for 60-90 days, WE STILL PAY THE CARRIER!
I understand there are some slimeballs out there, but stop doing business with them. They give everyone a bad name and can only stay in business if you take their freight. Guess what, they only have the business because they quote low prices and you take it! If you don't take their freight, it still has to move. I guarantee you 3-4 hours later a more reputable broker will call you with the same frieght at a higher price. Stop supporting the slimeballs.
As a broker if we happen to bill $200 more than we pay the carrier, understand, this is not "pure profit" as carriers seem to think. We have to pay for an office, employees, computer systems, etc. Most costly is our sales people! Do you have any idea how much it costs to hire, train, pay for an expense account, car allowance, etc. for our sales reps to go out an FIND this business. Do the math. Just to cover a sales reps salary, $60,000 with benefits, plus car allowance, say $8,000 and say $1000 per month, travel, dining out with customer etc. your talking $90,000. Now how many loads does he have sell making $200 just to pay for him/herself.... 450 loads! Just to pay for the sales rep. That doesn't include the dispatcher, the administration people, telephones, lights, heat, rent, etc. or any profit! Guys, we have a business just like you do with revenues, and expenses. We have to make a fair profit to cover expenses just like you do.
When you take all this into account, are not brokers a better investment than going out and hiring four or five sales reps who may or may not generate any business? Believe me I've been hiring sales reps for years, it's not so easy. Brokers provide a low cost sales and markeing service to the carriers. Why can't we all just get along! We're in the same business, we should be working together to support each other, especially in this difficult market climate we are ALL facing right now.