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No not at all, I get it. All of it, I was just commenting on the way it was posted. There is no reason for that, we are all here for the same reason. I think you missed the point of my reply.
new thread: WHORING YOUR RATES AND WHAT TO DO TO STOP IT
- Thread starter noproblembuddy
- Start date
No not at all, I get it. All of it, I was just commenting on the way it was posted. There is no reason for that, we are all here for the same reason. I think you missed the point of my reply.
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Linehaul Girl
Was there a problem with how it was posted? These posts were not "slandering" freight brokers at all in my response as you put it. They are an important part of this business, (brokers need carriers, and carriers need brokers) I think my point was more that people in this business should strive to build relationships (from other threads on here we can see that the cheapest option is not always the best option in a service based industry). I find that some of the information on this site can be taken from different perspectives, and people sometimes argue back and forth on here, I was simply stating some of our concerns as a carrier. In regards to the comment about working a bit harder, I can assure you that EVERYONE in this industry has been working much harder because yes it is "our job" to move freight as you put it, and the strong will survive. I defintly think you may have taken some of these comments on these posts in the wrong context and i just thought i would try to help clarify.
Was there a problem with how it was posted? These posts were not "slandering" freight brokers at all in my response as you put it. They are an important part of this business, (brokers need carriers, and carriers need brokers) I think my point was more that people in this business should strive to build relationships (from other threads on here we can see that the cheapest option is not always the best option in a service based industry). I find that some of the information on this site can be taken from different perspectives, and people sometimes argue back and forth on here, I was simply stating some of our concerns as a carrier. In regards to the comment about working a bit harder, I can assure you that EVERYONE in this industry has been working much harder because yes it is "our job" to move freight as you put it, and the strong will survive. I defintly think you may have taken some of these comments on these posts in the wrong context and i just thought i would try to help clarify.
15
FIGHT FIGHT FIGHT! Personally I like to give the bad brokers (A&M, Momentum Road Etc who take forever to pay if at all) rates that are double in the hopes they wont get the freight and it will go to someone reputable. If I miss out on the freight but help the industry I can live with that.
Maybe I shouldn't say this right now but I have on occasion, when I know that someone is trying to double broker some US brokers freight, give a rediculously low rate just to see if I will get it.
Most times I still don't get a call - even though I have offered 70 cents per mile CDN. A few times I get it and say "Oh I just booked the truck - sorry" and you know that they are in trouble when they get mad at you.
I know, shame on me but some of these brokers deserve it.
On the other hand, we use some brokers who regulary call us for quotes and most of the times we get a response back to say what has transpired. There are some good brokers out there and kudos to you who are maintaining good service levels and using excellent carriers. Excellent sales is what is needed by a good broker and you will retain good freight for half decent rates.
just my 2 cents.
Most times I still don't get a call - even though I have offered 70 cents per mile CDN. A few times I get it and say "Oh I just booked the truck - sorry" and you know that they are in trouble when they get mad at you.
I know, shame on me but some of these brokers deserve it.
On the other hand, we use some brokers who regulary call us for quotes and most of the times we get a response back to say what has transpired. There are some good brokers out there and kudos to you who are maintaining good service levels and using excellent carriers. Excellent sales is what is needed by a good broker and you will retain good freight for half decent rates.
just my 2 cents.
10
Freight quotes
As a small Carrier:
I am always happy to quote a reputable freight broker, as they in essence represent our extended sales force. I always give them a fair rate that stays stable over an extended period of time.
Our rate structure has remained the same for over the last two years and the price of a skid has not increased nor decreased. The price we quote always includes the FSC. We offer good service and a stable price. Once we get the 1st shipment from a freight broker we have quoted, that shipment generally becomes a regular pick up for us.
Every once in a while we do run across a freight broker that post a load on LINK that wants to put us in a bidding war. This is easy to detect beacuse the Freight broker does not have a baseline rate to give us, and in this instance we simply do not give them a quote , instead leaving them our number to call back when they have an idea of what the price should be. May I add they seldom call back.
The reasoning for the above being that no reputable professional will be involved in anything he does not have a clue about (educated guess)and this goes for rates as well.
Thus we form a close relationship with the freight brokers we work with. The freight brokers need the reputable , reliable , friendly and professional service we offer them as much as we need the repeat business and prompt payment they provide. This is our formula for stability and growth.
As a small Carrier:
I am always happy to quote a reputable freight broker, as they in essence represent our extended sales force. I always give them a fair rate that stays stable over an extended period of time.
Our rate structure has remained the same for over the last two years and the price of a skid has not increased nor decreased. The price we quote always includes the FSC. We offer good service and a stable price. Once we get the 1st shipment from a freight broker we have quoted, that shipment generally becomes a regular pick up for us.
Every once in a while we do run across a freight broker that post a load on LINK that wants to put us in a bidding war. This is easy to detect beacuse the Freight broker does not have a baseline rate to give us, and in this instance we simply do not give them a quote , instead leaving them our number to call back when they have an idea of what the price should be. May I add they seldom call back.
The reasoning for the above being that no reputable professional will be involved in anything he does not have a clue about (educated guess)and this goes for rates as well.
Thus we form a close relationship with the freight brokers we work with. The freight brokers need the reputable , reliable , friendly and professional service we offer them as much as we need the repeat business and prompt payment they provide. This is our formula for stability and growth.
I would like to add that there have been several occasions of late where we have been asked to quote on lanes that we do need to call and get current rates on. With the volatility in the market place the rates seem to be all over the place and we need to make sure that we have quoted competative rates (read here not cheap!). 99% of the time the carriers let us know what they need and are good about it. We did have one person get pretty snarky and say "I don't play the rate game!" and that was the end of that conversation! I think the other posts are bang on though....when carriers actually see freight being offered to them at, or close to, the rates they originally quoted, they are more willing to discuss rates on other shipments. Quotes with no freight ...probably a little harder to build a good relationship. My two cents worth....
ps...paying the carriers within 30 days let's them know they will not be waiting for the devil to get cold before they see the money they are owed!
ps...paying the carriers within 30 days let's them know they will not be waiting for the devil to get cold before they see the money they are owed!
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Alx, your last paragraph sums up what any good business relationship should be about. Deal with honourable people, supply an excellent product or service and pay your bills in a timely fashion. It is refreshing to hear that there really are companies out there that share the same philosophy.
10
The worst is when somone posts freight on the link you call and they say I have to quote the customer...then they say they need the best rate. I tell them I will give you our rate and a great service but I can't cut my rates.
The US companies are trying to take over but isn't that the case with almost anything Canadian...?
The US companies are trying to take over but isn't that the case with almost anything Canadian...?
Actually we call regularly for rates because 90% of carriers have a different one everyday....they rate us high, then take the SAME FREIGHT FOR THOUSANDS LESS.
If you are going to rate high, then stay high.....or give us a number we CAN SELL.....
Carriers are their own worst enemy....
If you are going to rate high, then stay high.....or give us a number we CAN SELL.....
Carriers are their own worst enemy....
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Reply to worst enemy
You certainly have a strange philosophy for someone that relies on someone else to carry out the task for which you are getting paid!!!
Also from your comment on taking freight for thousands less than the rates you are quoted, either you are naive and do not understand the market or I'm in the wrong business , where margins are in the thousands of Dollars. I as a carrier seldom , if ever , have the opportunity to make thousands on one shipment.
You certainly have a strange philosophy for someone that relies on someone else to carry out the task for which you are getting paid!!!
Also from your comment on taking freight for thousands less than the rates you are quoted, either you are naive and do not understand the market or I'm in the wrong business , where margins are in the thousands of Dollars. I as a carrier seldom , if ever , have the opportunity to make thousands on one shipment.
10
Cooperation
I beleive that it really comes down to a complemetary realationship. When both parties are a good match for each other, the association prospers.
Most of the problems arise from the ease of entry into our industry as a whole. In essence , it is very easy to become a freight broker, the requireements are quite lax especially here in Quebec.
It is somewhat harder to own a trucking company , both regualtory and finacial requirements are heavier.
Older established companies on both sides of the spectrum have most likely developped amicable relationships built on TRUST which they have garnered. The hard part is to wade through the new entrants and hope to make corrections before the damage puts the compnay in peril!
I beleive that it really comes down to a complemetary realationship. When both parties are a good match for each other, the association prospers.
Most of the problems arise from the ease of entry into our industry as a whole. In essence , it is very easy to become a freight broker, the requireements are quite lax especially here in Quebec.
It is somewhat harder to own a trucking company , both regualtory and finacial requirements are heavier.
Older established companies on both sides of the spectrum have most likely developped amicable relationships built on TRUST which they have garnered. The hard part is to wade through the new entrants and hope to make corrections before the damage puts the compnay in peril!
30
Absolutley correct Alx. The key word is trust. Our industry is no different than any other, purchasers of a product or service should ensure that the quality is good and the price reasonable, and suppliers should ensure that they will be paid for providing the goods or services. Isn't this Business 101? I am forever amazed at some carriers offering to haul our freight with little or no due diligence as to wether or not we will pay for that service. Whatever happened to asking for and then checking references? The good brokers, and the good carriers, will always provide references, in most cases these references are something to be proud of, an indication of the trust they have built-up over years of good business practices. Listen, from what I understand there are evidently 100's of freight brokers in the marketplace. Why not make an attempt to identify and deal with the good ones? From previous posts on this site, they do seem to exist. Ask the right questions, check the references, and walk before you run with respect to racking-up a big bill. Who knows, you might end-up developing a worthwhile relationship.
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Brokers and carriers need each other...looking at my own situation (based on my own industry experience)..I could become a carrier sooner than most carriers can learn supply chain management...And we're all middlemen really.. The carrier combines available resources...i.e. buys trucks and hires drivers...while the broker brings together available trucks with customers who need their freight moved. And some of us brokers understand the carrier end of the business better than most carriers do..
10
In that case you certainly are the exception to the rule. It is far easier to learn how to implement a flow chart which is what supply chain management comes down to, than it is to operate a transport company with its multitude of variables, the most difficult of which are now dealing with the government agencies that are involved in policing our industry, especially if you venture into the USA.
Secondly, the carrier has the immensely difficult task of dealing with driver retention, which is difficult due to the independant spirit of the individuals that drive trucks over the road. And last we are not middlemen in the essence of the term, we are the primary supplier of the service.
Secondly, the carrier has the immensely difficult task of dealing with driver retention, which is difficult due to the independant spirit of the individuals that drive trucks over the road. And last we are not middlemen in the essence of the term, we are the primary supplier of the service.
30
If I could be so bold to speak for Freight Broker, I believe what he meant was, as a re-seller of a certain product (in this case transportation service), it is in the brokers best interest to be as knowledgeable as possible of the service he is offering his clients. Just as a reseller of bricks, or shingles, or computers, whatever, the re-seller should have a great deal of knowledge of that product. The longer one stays in the industry, it is only natural to aquire knowledge about how your suppliers operate, in fact it is in your own best interest to do so.
30
Freight Broker are you for real
If I may be so bold and usually am. Freight Broker are you for real? You may know the business and maybe could run a sucsesfull transportation company but to say that 90% of brokers know more about trucking than trucking companies get off the pipe crack kills.
I on a daily basis call brokers and explain there freight, weights, dimensions, rules and regulations to brokers. case in point broker yesterday looking to move a tridenm load to Texas. (ya ok I will get right on that Sunshine)
You may know the business but if is not to bold to say 99% of the people in the brokerage end of the business wouln't know how to start a truck never mind the difference between a banjo and a pogo stick.
If I may be so bold and usually am. Freight Broker are you for real? You may know the business and maybe could run a sucsesfull transportation company but to say that 90% of brokers know more about trucking than trucking companies get off the pipe crack kills.
I on a daily basis call brokers and explain there freight, weights, dimensions, rules and regulations to brokers. case in point broker yesterday looking to move a tridenm load to Texas. (ya ok I will get right on that Sunshine)
You may know the business but if is not to bold to say 99% of the people in the brokerage end of the business wouln't know how to start a truck never mind the difference between a banjo and a pogo stick.
10
Because there's far too many freakin' trucks in the industry right now!
Want to know how to make a million dollars in trucking real easy? Invest 2 million in a trucking company.
What needs to happen is more carriers should stop buying trucks and start brokering more. As a broker, I don't want to own trucks. I know how to sell, not change tires and manage drivers. If you guys love that business than great for you. I absolutely don't look down on you for it. It's a tough and hard business. One which I prefer to leave to the experts.
I've been selling for 15 years now. 8 of which in transportation. I'm good at it. I've dedicated my career to it. That's what I do. If I dedicated the next 15 years to running a trucking company, I could probably be good at that too, but I realize outsourcing it the experts is way better.
You could go out and hire a sales team and spend 15 years figuring out how to hire the right person, how to manage them, how to set a propper compensation system, how to install the right CRM system to manage them, etc., etc., spend money on marketing, a website, get ranked on google, advertise in magazines, etc, etc. I would suggest, it's probably better to outsource. There is a cost to being an expert at something. It takes time and money.
Honestly, if you could magically remove all brokers tomorrow as someone suggested in an earlier post. The rates in the industry would fall by 15-20%. Why? because the carriers would bid away the brokers margin down to zero and still be complaining about low rates. I'm all for higher rates. I wish every carrier would raise their rats by 25%! Then I could raise my rates too!