Is the freight broker market too saturated?
Are there too many freight brokers right now? Broker saturation is a common fear that not only holds new broker’s from getting started…but also keeps existing brokers from growing to their full potential.
In this video not only will I give you my answer to “Is freight brokering a saturated industry” But I will also give you 4 keys to succeeding in a market that you might consider crowded.
Whether you are thinking about starting a freight brokerage, switching from being a driver to freight brokering, or you have been in the industry for a long time, this video will give you the information you need to get the most out of your business.
While the freight brokerage industry has undoubtedly become more competitive, it’s essential to consider a few factors before concluding that the market is saturated:
- Growing demand for freight services: With the continued growth of e-commerce and global trade, the demand for freight services is expected to increase in the coming years. This ongoing expansion of the market creates new opportunities for freight brokers, even in a competitive landscape.
- Fragmented market: The freight brokerage industry is highly fragmented, with a large number of small and medium-sized brokers operating alongside major players. This fragmentation suggests that there is still room for growth and specialization, as brokers can differentiate themselves by focusing on niche markets or offering unique value propositions.
- Technological advancements: The adoption of advanced technologies, such as artificial intelligence, machine learning, and automation, can help freight brokers improve their efficiency and competitiveness. By leveraging technology, brokers can offer better services and differentiate themselves in a crowded market.
What is Broker Saturation?
Broker saturation is the belief that there are too many freight brokers in the industry and there is no more room for new freight brokers to start a successful business.
Im here today excited to tell you that this belief is a complete myth. It is spread by older brokers to scare the new faster and driven generation of brokers from coming in and taking a share of the market.
In fact, not only is the broker market not saturated, I would argue that it would be challenging to find a market in the world that’s NOT considered saturated.
Competition is healthy, it means that things work, so saturation is nothing to fear when it comes to starting your freight brokerage.
Truth is, the industry needs good and honest freight brokers now more than ever, so there has never been a better time than today to get started.
How to stand out in a crowded freight broker market
So while the freight broker market is not saturated, it is still crowded. There is a lot of competition and as a budding new broker, you need a way to stand out. Here are 4 keys to standing out in a crowded freight broker market.
- Unique selling proposition
In other words, you need something that will help you stand out amongst the crowd. You might call this picking a niche, but I like to go a little bit deeper than that. Maybe you guarantee a call back from your customers in 30 seconds or less.
Maybe you have a unique team set up that allows you to rate your customers faster than anyone else. You can even go as far as offering no risk guarantees to your customers. Of course, these are all just examples. The point is, you need something about you and your business that is different.
Hint: you are a unique individual. You bring a unique perspective to everything that you do. YOU are enough. - Speed of Implementation
You have to remember that it is not always the “best” broker that comes out on top. Sometimes, it is the one who can get things done right…the fastest.
In my brokerage, after doing things right, our focus is speed. We want things done as fast and efficiently as possible and this style makes our customers more money.
Speed should always be your focus. I promise it will be to your benefit in the long run. - Belief in Yourself
You can be your own worst enemy when it comes to brokering success. If you don’t have a belief in yourself that you can do this, you don’t stand a chance to stand out in a crowded freight broker market.
You have to wake up everyday, stare in the face of rejection and keep pushing forward. That is the only way you can make it through “the grind” of the beginning stages of brokering and make it to the finish line. - Processes and Systems In Place
In logistics, organization is key and the best way to stay organized is to develop systems and processes that can help your business grow.
Systems will be key to you growing your team in the future and will be very important when you are ready to hire employees to help scale the business.
Systems are an easy way for you to create standards for your employees and your customers. It is a much less stressful way to run your business when you don’t have to think about certain things.
In my brokerage everything is systemized. Everything from tracking loads, to paying bills and sending invoices has a procedure that we follow exactly every single time. This minimizes mistakes and helps us stay on top of every aspect of the business.
I hope you enjoyed this video and blog. If you are new here are some more ways I can help you on your journey as a Freight Broker:
Get 1 FREE MONTH of DAT through our link:
https://freightskills.com/dat-freight
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P.S. Whenever you’re ready… here are 3 ways I can help you grow your Freight Brokerage:
1. Join our Freight Broker Accelerator Membership. The first of its kind continuous support freight broker training program. Also…it’s risk free
If you’d like to work with me directly on your brokerage growth plan Check out the Freight Broker Accelerator: https://freightskills.com/fba/
2. Watch my free Webinar
It’s the roadmap to growing your freight brokerage past 6-figures: https://freightskills.com/webinar-registration/
