We joined the dark side

CharlesD · Apr 29, 2014

We're now a broker. Just got the broker authority and the bond in place a few days ago and we've brokered a whopping one load so far. Now we just need to get something of a customer base built up so we can have something to broker on occasion.

We've been trying to build up something of a customer base recently but were having trouble because local shippers, at least the ones I'm talking to around here, don't want to call you back if they've called you a couple times and you couldn't cover a load, so I had to get the broker authority in place so I don't have to say no to a shipper again. I don't think I'll have too much trouble finding available trucks around here. I'm hoping this will help us out with our own trucks as well since retaining customers can only help our guys get better paying loads on occasion.

layoutshooter · Apr 29, 2014

Good luck!

Tennesseahawk · Apr 29, 2014

CharlesD said:
We're now a broker. Just got the broker authority and the bond in place a few days ago and we've brokered a whopping one load so far. Now we just need to get something of a customer base built up so we can have something to broker on occasion.

We've been trying to build up something of a customer base recently but were having trouble because local shippers, at least the ones I'm talking to around here, don't want to call you back if they've called you a couple times and you couldn't cover a load, so I had to get the broker authority in place so I don't have to say no to a shipper again. I don't think I'll have too much trouble finding available trucks around here. I'm hoping this will help us out with our own trucks as well since retaining customers can only help our guys get better paying loads on occasion.

Frankly, I think you almost have to be a broker, in order to compete. The guy who is has 1000s of trucks at his disposal, while the guy who doesn't has only his trucks (if he's doing it legally, that is). No competition there.

And honestly, that would be a HUGE plus to the equation of what we talked about last May.

davekc · Apr 29, 2014

Have to agree with Hawk especially if you are soliciting your own customers.

CharlesD · Apr 29, 2014

Yeah, we started trying to move up the food chain a bit and found out that if you can't broker out the excess, the shippers don't want to deal with you that much. The bond took a little longer to get with the increased amount, but I finally managed it. Now we just need to get a good customer list going. I don't want to go the route of re brokering NLM stuff like some carriers do a lot of. I'd rather the customer knows up front that we're brokering some of their stuff. I'll sleep easier at night keeping it above board.

runrunner · Apr 30, 2014

I wouldn't say you joined the Dark Side,I'd call it the Bright Side. Just like a contractor can improve his odds buy having endorsements,extras on the truck etc,you can improve your odds,by covering more bases as well.Once things get moving, you may wonder how you got along without Broker rights.

tenntrucker · Apr 30, 2014

sent from my Galaxy Tab2

robh2 · Apr 30, 2014

Was it as expensive as I hear? Like 10k bond?

CharlesD · Apr 30, 2014

robh2 said:
Was it as expensive as I hear? Like 10k bond?

Well, it's not cheap, but I found a group that financed it so I'm making quarterly payments. It's a bit easier on the budget. The bond is now 75k.

zorry · Apr 30, 2014

You don't actually put up $75k, do you ?
Don't you essentially buy a $75,000 insurance policy ?

CharlesD · Apr 30, 2014

zorry said:
You don't actually put up $75k, do you ?
Don't you essentially buy a $75,000 insurance policy ?

Yep, but the cost of the bond is still a bit more than when it was 10k.

Murraycroexp · Apr 30, 2014

CharlesD said:
Well, it's not cheap, but I found a group that financed it so I'm making quarterly payments. It's a bit easier on the budget. The bond is now 75k.

Pacific Financial? Something like $3600-$4500? Don't recall. We had, but let it go when $75k came along. Two of our customers used to use us to broker a lot. But their need went away.

iceroadtrucker · Apr 30, 2014

https://www.youtube.com/watch?v=6ib9N7L9y08 Good Luck too YA!!!!

paullud · May 6, 2014

CharlesD said:
Yeah, we started trying to move up the food chain a bit and found out that if you can't broker out the excess, the shippers don't want to deal with you that much. The bond took a little longer to get with the increased amount, but I finally managed it. Now we just need to get a good customer list going. I don't want to go the route of re brokering NLM stuff like some carriers do a lot of. I'd rather the customer knows up front that we're brokering some of their stuff. I'll sleep easier at night keeping it above board.

When you look at freight companies that have brokerages it is odd that so many have no problem passing a load to their brokerage to take money off of the load and then pass it back to the trucking side to take another 30%+ from the drivers. I'm sure it is something that you aren't going to do but there is so much of it that happens. Then you have the ones that double broker loads and take huge amounts of money off a load. A Landstar agent recently caused a problem when they took a load from Sammons and promised that it would go on a Landstar truck. The agent decided to lie and brokered the $5500 load out and only paid the truck $4400. When Sammons found out they announced that they would stop doing business with Landstar altogether, not just the one agent and then gave all of the money for the load to the driver leaving the agent empty handed. We certainly need more ethical people in the brokerage industry and I'm sure one was just added. Good luck.

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