Understanding Freight Broker Margins | Episode 251

Managing margins in freight brokerage is no small feat. We'll discuss the strategies to balance shipper and carrier needs, the nuances of carrier pricing, and the importance of maintaining healthy margins for financial stability. We offer practical tips on strategic timing in booking loads and effective negotiation tactics, all while underscoring the value of transparent pricing in building trust with customers. Tune in for a wealth of knowledge aimed at helping you foster a sustainable and successful business in the freight industry.
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0:00 Housework and Company Updates
11:49 Freight Market Trends and Opportunities
18:52 Importance of Margin in Freight Brokerage
26:27 Freight Margin Strategies
35:56 Freight Brokerage Margin Strategies
44:05 Freight Brokerage Margin Considerations
52:35 Building Trust Through Transparent Pricing

[@jomomighty958]

At 35:00... I like how you think Ben! That's an awesome approach to it

[@Freight360]

Thanks!

[@TopUpLogistics]

Thanks for the great KZbin videos. I am a new broker and also a new carrier. I enjoy your videos because all of your content is very informative unlike other you tube videos.

[@Freight360]

Appreciate the feedback! Share us with your colleagues.

[@AmpersandTransport]

First off, I love your channel and watch every video you guys put out as every episode has real, legitimate, actionable insight. I know you have connections within DAT and I am at my wits end trying to resolve issues with them. We have been unable to use our account for almost a month now. We continually call for updates and the only answers we can get is the Compliance is looking into and we need to wait on them to contact us. I have asked to escalate the matter but again can’t get anywhere. A month of no answers and no resolution. DAT is a pivotal provider in the industry and their actions could be a death sentence for a new or smaller company that simply couldn’t survive a month without DAT. I appreciate they need to continue to evolve their security to stay ahead of the fraud, but this is not reasonable. Has anyone else experienced this? Does any have any contacts outside of Customer Service to escalate this? A month is just far too long to put up with this.

[@NWaitinas]

I need a 40% margin on some of my low mile runs- pay truck $300, $500 bill rate etc. I don’t feel it’s greedy at all, as it’s what I need to give the customer the service they deserve and have cushion to get it done (occasionally) at or close to cost.

[@BigfellaAutoExpress]

Do a freight 360 3D letter wall sign with a back lit panel. :)

[@Freight360]

That’s a good idea! I’ll have to look into some companies that make them.

[@TBb____]

Great convo. Is it the standard for your shipper to send out loads to all of their brokers on a blasted email??

[@Freight360]

It can be. It’s very common with lumber companies for example.

[@pxone9230]

Can you guys explain how detention works on the shipper / broker side?

[@Freight360]

Can you be more specific? Are you talking about the rates, or how detention is determined?

[@operationatdsnexpedited2682]

I think Amazon brokerage will soon be taking more and more customers from small brokers since they have large base of carriers and digital platform that dont cost much to operate so they can aford to charge lower margin then smaller brokers..

[@Freight360]

Great point! But, those types of brokerages tend to provide cheap rates but poor service and even worse on time %’s. They operate similar to CHR on price and price alone.

[@TBb____]

I wish that’s how I’ve worked😂 watching tv all day LOL

[@Freight360]

😂🤣😂