Myth #2 Non Asset Based Freight Broker Are Not Cost
Effective
It makes sense that if you
remove the middle man (the broker) from the transaction it will result in lower prices for the
shipper. When actually a broker may very well get you the best price. There is power in numbers. As
a result of a freight broker's volume in a given lane, within a given
market or with a group of carriers, they are able to leverage that volume to negotiate better pricing. Equally important is the fact that
freight brokers routinely re-position assets resulting in less empty
miles and more profit retention for their asset-based carrier partners. Because
no carrier wants to run empty, back hauls are typically done at a discounted
rate, which allows brokers to offer competitive rates to the shippers while earning a small
profit for these return trips.
FACT: Smart freight brokers are able to leverage back
hauls and volume to decrease their cost basis, which allows them to make a
small profit while maintaining competitive prices.
We train our freight brokers to negotiate the optimum deals because we know a well serviced customer will keep using that broker. It is a mutually beneficial relationship.
Moving forward
Jeff Roach
www.transportationtraining.com
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