Friday, October 12, 2012

Double Brokering

 Message From A Friend:



The end of summer has finally come, and with it comes scarcity. Brokers are fighting tooth and nail for every scrap that they can get. This means that the quality of pricing and sales practices has, as expected, dropped off of a cliff. I think that it’s important for everyone involved in this industry – the brokers, the customers, the drivers, and yourselves, the lead providers – to act professionally. As of late, there has been an influx in double brokering, low-ball pricing, and every other dirty trick that one can imagine. It doesn’t look good for anyone that customers are having their vehicles double or triple brokered, leaving them without a chance for service. I think the root of the problem is low-ball pricing.

I’m not saying that brokers shouldn’t be pricing competitively; competitive pricing is how we make our daily bread. But there is a thin line between competitive pricing and aggressive low-balling.  The number of drivers dwindles every day, and the guys that remain are becoming incredibly selective about who they give their loads to.

I know that you’re limited in what you can do, but this is something that needs to be addressed. The people that are really suffering are your long-term clients and the customers that they service. Not only do low-ballers ruin good deals, but they also hurt the drivers. And without the drivers, there is no auto transport industry to speak of.  Things will only get worse unless you, as the lead provider(s), address the issue with brokers DIRECTLY through emails or some other form of communication. Just let some of the other guys out there know that this low-balling business needs to stop. I think that this would be a step in the right direction for now.

Thank you for your time and please help us out!

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