The Auto Transport Broker and The Piracy of The Truck Driver

Have you ever thought about what it takes to run a profitable business?

To tell the truth before owning my own auto transport business I never gave it a second thought. Frankly, I think most people are just like me. Many folks just get up in the morning, drive to work, put in their eight hours and go home. The next day they get up and start all over again; it is like being in a rut.

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You are probably thinking that is cold! Well, fact of the matter is that is exactly how I used to be. When we hate what we are doing, we just go through the motions. Who cares if there is a profit or not, it does not affect me - we think. All we are there for is to put in our time and collect a paycheck that doesn't go far enough.

You are probably wondering what this all has to do with auto transport and the piracy of the truck driver. Well, as employees we had better start caring about the company profits. Think about it for just a minute. If they do not make a profit, we probably will not have a job for long. Have you ever thought about it that way?

Auto transport industry is no different...

After talking with a truck driver, today this very point came to mind. Our whole conversation revolved around the economics of running our mutual businesses. There are so many pieces to the puzzle; but, one main reason really took the majority of the talk.

Today there are too many auto transport brokers out there not doing their job the right way. Greed has set in and taken over all common sense. Their focus is on their commission today and not that of the customer, trucker or industry. There is no looking at the stability of the business for tomorrow, next week or next year.

Doing whatever it takes to secure the order they lie, cheat and bait the customer to earn a few dollars. Now I am not saying it is not right to earn money, not at all. The point is that doing business that way is an injustice to all. How you ask?

I could really get on my soapbox here and rant for hours. Instead, let us focus on just one area of concern...the truck driver, or as we call them the owner operator.

Owner operators do not work for free either!

As a business owner, many expenses occur monthly this is called overhead. There are necessary expenditures that keep the truck, office, drivers and other employees "in business", or employed.

The business owner goes into business to make a profit. Sounds reasonable, right? They know what it costs to replace tires, change the oil and other fluids necessary to keep the big rig safe on the roads. There are permits, fuel taxes and surcharges, insurance costs and fuel costs too. Of course we can not forget there are truck payments, trailer payments, and the savings surplus account for repairs.

Next they must price out their loads to cover the driver expense, taxes, meals and sometimes-overnight lodging accommodations. Then there needs to be some sort of profit margin so the company can stay in business for the following month.

If the business owner is the truck driver as well, he or she must factor in the personal expenses, too. Most have a husband or wife at home with kids. There is the mortgage, power and water bills, telephone, food, insurance and taxes just like all the rest of us.

Auto transport brokers must educate the customer...

Part of the job of an auto transport broker is to educate the customer. I do not know about you, but before becoming a broker I knew nothing about the industry. We learned by talking with truck drivers who had years of business experience under their belts. By implementing these principles in my own business we have been able to weather the storm of this new economy when others have not.

Let me ask you a question...when is the last time you were able to walk into your local supermarket and tell the cashier what you were going to pay for that loaf of bread? Ha...won't happen will it? Of course not. The market sets the price us consumers will pay for the product and we either buy it or we don't, right?

When auto transport brokers do their job correctly, the customer will understand how the transport business works. They will understand why the prices are what they are. Sure there will be slight differences between brokers. Healthy competition is expected and good in the marketplace.

What is not good is when one sector of the industry turns to piracy. By charging the customer an excessive rate then paying the trucking company less than market rates this upsets the apple cart. It makes for an unbalanced industry and forces good people like you and me out of business.

Two years ago, we watched as about 75% of owner operators handed in their keys. Some of these hard-working men and women were our friends. Business owners who had provided our clientele incredible service at equitable prices. We had developed friendships. They are real people, just like us. More than once, I cried myself to sleep after listening to the plight of these people and the causes for their decision.

Today something has to change. More honest hearted people need to step up to the plate. Hard working auto transport brokers who own their own business need to get back to the basics. Educate the public that more than just diesel prices drive prices; which by the way is on the rise again.

You would not work for free...stop asking these business owners to pay you to ship your car! As a broker we are not for the government stepping in to solve an industry's problems like is so rampant today.

However, as an individual auto transport business owner, I'm taking my stand. Education is key and our clients are well-educated, informed and happy. They are happy because their truck driver has a profitable business driven by fair market value.

The Auto Transport Broker and The Piracy of The Truck Driver

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Auto Transport Broker, The Role Of A Middleman

Have you ever wondered what an auto transport broker does for the customer? If you have, you are not alone. Many people do not know exactly what to expect when they make that first phone call. When I first learned of the auto transport broker business, I did not know the exact and complete role of the broker either.

There are many small details just like any other job. However, today I want to address one BIG part of the job. That is how the transport broker must balance serving their customer with serving their drivers.

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Brokering may seem simple...

The reality is there are many details that make up the job. Some may seem minor, but could take a twist and turn for the worse making a mountain out of a molehill.

One such detail is the carrier's insurance. Department of Transportation requires each truck and driver on the road to carry a minimum amount of insurance. Truckers are no different from you and me. We are fined when we do not have insurance on our cars, the same goes for them.

One major difference is in the insurance limits and terms of coverage. Verifying the insurance is in effect and will not expire during the transport is part of the job. Then there is the matter of what is covered. It only makes sense that liability and equipment is covered. However, what about the customer's car; is it covered?

Trucker's insurance has a special coverage called "cargo". Each company's limits will vary according to their equipment, how many cars they can carry and of course, the premium they are willing to pay. Therefore, as a transport broker we must make sure our customers precious cargo is covered at least for the minimum allowed by law.

Another aspect of brokering is in verifying the reputation of the carrier and company. Each brokerage has points of contact to do this part of his/her job. There are government websites available and reference checks from business contacts to aid checking a carrier's reputation. In any case, you always want to know whom you are dealing with on behalf of your customer.

What will happen if a problem comes up?

Just like any other job, problems can arise no matter how well you have done your job. With government cutbacks, paperwork and websites are not always up to date. Insurance lapses and the updating of each file can fall between the cracks. A quick call to each company's insurance agent can solve that piece of the puzzle very quickly.

Can you really count on references to give an honest one? One source you can trust is your fellow auto transport broker! We have found over the years that a huge key to our success is building a solid relationship with our fellow brokers. By advising each other of negative experiences, we have developed a "black list". This list contains names and locations of carriers who have performed below the standards we choose for our customers.

One of these problems arose just the other day in our office. We received a phone call from one of the office managers at the trucking company. The issue revolved around the delivery of a customer's car. After carefully listening, pulling the file and contacting the customer for their side of the story, we were able to call the carrier back with a solution.

As a business owner, you must be able to referee each part of the transport in a fair and equitable fashion. There is Department of Transportation laws that govern what we as brokers may and may not do, period. Keeping this in mind, we must serve our client who has paid us. Then, we must also take care of our truckers who provide the service to our customers and us.

So, what are we to do? Listen to all of the facts, from both the customer and the driver. Looking at our file and notes, we must then make a determination of "the reality". We must keep in mind that each driver and customer is going to be looking at it from his or her own perspective. Each will want the situation to end the way they want it to. We help each party calm down, take a step back and come to a solution, peacefully.

We must make each one happy. We want a happy, satisfied customer with their vehicle safely in their possession. However, we also want a satisfied trucker who will want to work with our company again.

As the transport broker and business owner, all we can do is follow the law. Guide our customer through the process and help the driver and customer complete the transaction in a fair and equitable manner.

This is auto transport brokering. It can be a fun, challenging and rewarding profession. An auto transport broker solves two situations. If you want to ship your car, a broker can help you. If it is a new career you are looking for, an auto transport broker is a possibility, too.

Auto Transport Broker, The Role Of A Middleman

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