The Ugly Truth About the $75,000 Broker Bond! Part III - Conclusion
I hope everyone had a good Easter & thank you for joining us for Part III and the Grand Finale of The Ugly Truth About the $75,000 Broker Bond!
Before we get started, we couldn't help ourselves and we have to post our favorite Easter cartoon...
Back to business! Here is Part III Summary and conclusion of the Ugly Truth About the $75,000 Broker Bond and how it will do nothing but restrict and damage our industry, for both brokers and carriers!
Increase the amount of business given to large carriers.
Large carriers with numerous trucks in the same city every day will pick up this business from the small brokers who must raise rates significantly or shut the doors.
Reduce Freight Rates.
For small carriers and small brokers. Large carriers will swoop in and cut the rates to get the business. Large carriers overall erroneously believe they have cheaper costs due to their size, and have cut rates year after year. There are obvious savings associated with size on a broad scale, but they are a minimal on a per truck basis. The money they save on overhead, etc. they lose in driver retention and turnover costs compared to a small carrier. A truck is a truck is a truck, and the major costs are there for everyone.
Reduce Truck Profits.
Lower Rates, Lower Rates and Lower Rates. Click your heels together three times and say this with me.
Reduce Broker Profits.
Higher Costs and Lower Rates. Higher Costs and Lower Rates. Higher Costs and Lower Rates. Repeat heel clicking step here.
Reduce New Entrants to the Trucking Industry.
We need new entrants to the truckload industry! We need resources and drivers and fresh approaches and ideas. Did you know that freight cost for manufacturers and retailers on average is less than 5% of total product cost? Price it right and know your customer! Don't price freight based on what you need or usually get. Learn how to sell your services! Business is built on relationships!
Reduce New Entrants to the Broker Industry.
We need brokers to go out and hustle new business! Good Brokers get business based on what they offer and not cheap rates. I'm going to repeat myself! Did you know that freight cost for manufacturers and retailers on average is less than 5% of total product cost? Price it right and know your customer! Don't price freight based on what you need or usually get. Learn how to sell your services! Business is built on relationships!
Shift Larger Portion of Industry Wide Truckload Freight from Carriers to Brokers!
Fewer small brokers and carriers in our industry! Enough Said!!!
Please take a moment to check out Transport Topics Legendary Reporter Dan Bearth's story about the $75,000 Bond Issue, Click here...
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