Survey says broker margins fall

[gjmcclain]

Thats what this story and survey tells us.

CLICK HERE FOR FULL STORY

But, don't feel sorry for them, as the survey says the average broker still makes $63,000 per year.

Almost 500 freight brokerage companies and third-party logistics providers completed the second annual survey, which asked about company operations, revenues, margins and sources of business.

Survey respondents reported that profit margins averaged 15.8 percent, a 5 percent decline from last year’s average of 16.6 percent.

Gee, so the next time one of those brokers tells us they aren't making anything off the deal I guess we will actually know better, that is in most cases.

Most of these brokers are getting their health insurance paid for by what I saw in the survey as well, so I think I am done buying into all their BS on the phone.

No matter what it really does seem they keep to much of the money for themselves...........just my thought and I don't mean to talk down about brokers, but I would think there has to be a way for drivers and owner/operators to get a bigger piece of the pie.

Then again, maybe we actually have to wait for there to be a better balance of supply and demand, because the way I took the survey is that less than a year ago there was 6 loads for every truck out on the road and now there is like 0.82 loads for every truck..........

I think the heard needs to be trimed before the economy itself will be any help to us

Read the whole survey - its interesting.

 

[mjolnir131]

you mean half a percent not 5 percent right?

 

[miker]

Then again, maybe we actually have to wait for there to be a better balance of supply and demand, because the way I took the survey is that less than a year ago there was 6 loads for every truck out on the road and now there is like 0.82 loads for every truck..........


this is what will have to happen before we the O/O will even begin to have anyy bargaining tools at all, right now 90% of the time when they say that it pays 400.00 and we say we can do it for 500.00 the broker has a great chance that someone else will gladly take it for the 400.00. I believe that it may take a little while but the tables will start to turn again.

 

[gjmcclain]

you mean half a percent not 5 percent right?

Well, you would think, but I quoted them word for word, so I am not sure how they figured their math out.

Whichever, at least they are making a pretty decent percentage of a profit though........hopefully ours is somewhere around the corner, or that next corner or around the half circle or something..........

 

[mjolnir131]

i meant the article sorry should have clearified that better my bad

 

[DougTravels]

you mean half a percent not 5 percent right?

I think 5% is correct

If you are currently getting 16.6% and you were to lose say 10% you would have to subtract 1.66 (10% of the 16.6) Since it went down .08, I believe the 5% was right.
16.6 times 5% is 0.83, so 16.6 minus the 0.83 equals 15.77

 

[CharlesD]

If I'm getting an acceptable rate, then I really don't care what the broker's margin is, but when I'm having to fight tooth and nail to try to get enough of a rate for a driver and me to both make an ok profit, then I take an interest in how much of a margin the one brokering the load is getting. Lately I've been taking a hit on my own margins just to try to give a driver enough to be barely profitable on a run. Sure, I've made better margins on some other loads, but sometimes a carrier is left having to decide if the driver or the carrier is going to make a profit on a load because there just isn't enough there for both to make money. When that is the case, I take an interest in how much the broker is making off that load and when they tell me they don't have enough in the load for the carrier and the driver both to actually make a profit, I get a little skeptical.