Brokers.... what to charge....

fins_up_fl · Apr 22, 2012

Sitting here in TA, I heard a few drivers say that MOST, not all brokers are charging these companies between 4 to 5 dollars a mile.. (which doesn't seem right) I call BS!!! I have a t/t, and when I do a broker load, Im lucky to get 1.25 a mile out of them.. Lucky..
but It makes me wonder....
Am I not doing the first quote high enough, and they try to stick it to me? Or am I about right.. Granted I dont do brokers alot, Panther has been keeping me very busy for a solo T/T, but When Im up in the NE and want to get the ___ out, Ill use them...... Any thoughts?

davekc · Apr 22, 2012

There are 4 to 5 dollar loads, but not a ton of them. That is people on the CB saying that.

CharlesD · Apr 22, 2012

If you're in the NE, there's no need to run cheap to get out of there. Panther has plenty of freight in that area and you should be able to get top dollar to run it.

MissKat · Apr 22, 2012

Charles more tongue in cheek humor? Plenty if you go in the city otherwise not so much for us tt.

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x06col · Apr 22, 2012

fins_up_fl said:
Sitting here in TA, I heard a few drivers say that MOST, not all brokers are charging these companies between 4 to 5 dollars a mile.. (which doesn't seem right) I call BS!!! I have a t/t, and when I do a broker load, Im lucky to get 1.25 a mile out of them.. Lucky..
but It makes me wonder....
Am I not doing the first quote high enough, and they try to stick it to me? Or am I about right.. Granted I dont do brokers alot, Panther has been keeping me very busy for a solo T/T, but When Im up in the NE and want to get the ___ out, Ill use them...... Any thoughts?

You here'd eh? Was it in a booth, or at the counter, or, omg in the lot??? To get most of the $5 freight ya hafta usually knock on a few doors, steada working the net. However,........a blind sow do find an acorn.......once in a while.

dletheridge · Apr 22, 2012

Brokers profit is anywhere between 1 - 15 % of whatever the broker and the broker's customer agrees to. For instance the customer may say I'll pay $1,000 for this load, the broker would make $100 profit using the defacto standard of 10%. The broker would then turn around an pay the carrier the $900. The carrier would then turn around an pay the driver what and however they get paid.

Some customers say I pay $3.00 @mile and 30% FSC. If the run is 300 miles it works like this:
Mileage rate $900
FSC 200
Total Cust $1,170

10% of total cust billing would be $1,170*.1 = $117 profit

For the carrier total of 1,053
carrier milg rate 737.10
carrier fsc 315.90

paullud · Apr 22, 2012

dletheridge said:
Brokers profit is anywhere between 1 - 15 %

They make a lot more than 15% on the upper end.

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CharlesD · Apr 23, 2012

MissKat said:
Charles more tongue in cheek humor? Plenty if you go in the city otherwise not so much for us tt.

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Not humor this time. We do a lot of freight in and out of the NE and sometimes there are darn good rates for straight truck loads, rates that would be good enough to run the load in a TT to get back out and still make a tidy profit.

dletheridge · Apr 23, 2012

Paullud, what do you mean by upper end? I was speaking in general terms.

paullud · Apr 23, 2012

dletheridge said:
Paullud, what do you mean by upper end? I was speaking in general terms.

I'm saying they make much more than 15%.

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CharlesD · Apr 23, 2012

Don't blame the brokers for how much they make. If I had a load I got $4 a mile for and had carriers fighting tooth and nail to run it at $1.70, I don't think I'd turn down that kind of margin either.

dletheridge · Apr 23, 2012

I sure would like to know who's making 15%.

I do know there are some brokerages charge by a flat percentage, others a sliding scale based on what the customer pays, and others .. who knows.