Booking Your Own Jobs vs. Working with Brokers: The Pros and Cons for Moving Companies

As a moving company, one of the key decisions you’ll need to make is whether to take jobs from a broker or book your own jobs. While working with brokers can have some advantages, there are also some compelling reasons why carriers might want to consider booking their own jobs. In this blog post, we’ll take a closer look at the pros and cons of each approach.

Pros of Booking Your Own Jobs

1. More Control over Pricing
When you book your own jobs, you have greater control over the pricing of the move. You can set rates that are competitive with other carriers in your area, and you can adjust your pricing strategy as needed to maximize profitability.

2. Direct Relationship with Customers
When you book your own jobs, you have a direct relationship with the customer. This allows you to build trust and establish a rapport with the customer, which can lead to repeat business and positive word-of-mouth referrals.

3. Higher Profit Margins
By booking your own jobs, you can avoid paying commissions to brokers, which can significantly increase your profit margins. This can help you to grow your business and reinvest in your equipment, personnel, and marketing efforts.

Cons of Booking Your Own Jobs

1. Requires More Effort and Resources
Booking your own jobs requires more effort and resources than working with brokers. You’ll need to invest time and money in marketing and advertising to attract customers, negotiate terms, and handle the logistics of the move.

2. Less Flexibility
When you book your own jobs, you may have less flexibility in terms of scheduling and routing. This can make it more challenging to fill your schedule and manage your fleet efficiently.

3. Risk of Unpaid Invoices
When you book your own jobs, you bear the risk of unpaid invoices if the customer fails to pay. This can impact your cash flow and profitability if you’re unable to collect on these invoices.

Pros of Working with Brokers

1. Access to New Markets and Customers
Working with brokers can help you access new markets and customers that you might not have been able to reach on your own. This can help you to fill your schedule and grow your business.

2. Reduced Downtime
Brokers can help you reduce downtime and keep your trucks and employees busy. This can help you to maximize efficiency and profitability.

3. Streamlined Logistics
Brokers can provide logistical support, such as tracking shipments and coordinating with other carriers, which can help you to streamline your operations and reduce administrative burdens.

Cons of Working with Brokers

1. Commission Fees
Working with brokers typically involves paying commission fees, which can significantly reduce your profit margins. Depending on the broker, these fees can range from 20% to 40% of the total cost of the move.

2. Limited Control over Pricing
When you work with brokers, you may have limited control over the pricing of the move. Brokers may negotiate with customers on your behalf, and you may not have as much flexibility to adjust your rates as you would when booking your own jobs.

3. Dependence on Brokers
Working with brokers can create a dependence on their services, which can limit your ability to grow and diversify your business. If a broker is unable to provide you with enough work, or if they go out of business, it can leave you with a significant gap in your schedule.

Conclusion

Ultimately, whether to take jobs from a broker or book your own jobs as a carrier is a decision that should be based on your specific circumstances and business goals. While working with brokers can have some advantages, there are also compelling reasons why carriers might want to consider booking their own