With the many phone calls and emails that I receive, I am usually upfront with the freight broker situation as much as I can be. After all, people want to know BEFORE they commit what is the industry like.
Usually, I tell them it's competitive. And this is true. But, on the other hand, it's not the entire story. Here's why.
In any business including freight brokering, the ultimate key marketing advantage is to go into areas that others are not serving. And then you master that niche by pouring on the best service you can possibly give.
If you work yourself into your special niche, you virtually have little or no competition. One niche might be a special type of produce, for example. Another niche might be oversized machinery of some type. I know there are some growers who will not work with a broker unless the broker has demonstrated experience in moving that kind of product. And with the oversized commodities, some freight brokers focus entirely on that niche and learn all there is to learn in that particular area. They basically leave no choice for the shipper to go anywhere else but to them.
In both examples, the freight broker does more than just get a truck to move some cargo from point A to point B. They immerse themselves in their specialty and learn all the potential pitfalls and challenges for each of their niches. And then they provide the solution to these "obstacles".
So, if you are fortunate enough to get into a niche and master it like no one else, you can say goodbye to your competitiors plus make far above average profits as well.
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