View Full Version : Long post.Thinking about hauling watermelons.
henboy1
10-23-2009, 01:00 PM
Ok, so I am home after a long trip from san Francisco..I try to do more administrative stuff when I am home.Just when I got my authority, a Landstar BCO was giving me leads on shippers who needed power only or loads moved.The guy gave me 6 leads.I then started making cold calls with what I can offer.Out of 6 shippers/agents I called, 4 was a “no go” and the other two said they were just slow and they were not contracting any independent trucks.I just don’t know why, but the guy gave me a lead for hauling military freight.I wondered why he did that because, with most of these military contracts, you need a 100k bond or 10+ trucks etc..
I then talked to another independent who parks next to me at the yard.He had some military load going to CA.He said he had to put a 100k bond to get that contract.It was quite confusing but he gathered all his independent friends to put up that bond and when he gets a load he just distributes it among them.I still wasn’t clear on that.It also seems these Landstar Bcos are giving me leads without knowing the requirements or what is involved.
I was also telling my brother about this other lead I received from a friend of mine who is a manager at Publix.This guy has been selling watermelons on the side for the past 4yrs.He bought a UHAUL truck and trailer and gets his watermelons from south Florida.
His sale is on street corners, and this is his part time gig.
He was telling me if he had a CDL and was independent, he would make one hell of an income doing what he does.I then asked him about the business.
Before I start making cold calls to farmers and restarurants, please shed light on me trying to solicit for business in this industry.He told me to call “Cherry Albitron Farms” in Cordell, Ga.This farmer grows mostly watermelons.With a down payment or whatever, he can grow any type of watermelon that I request.The watermelons are being sold for $2.50-3.50/each.1500 watermelons will fill a trailer load.1500 pieces multiplied by an average of $3.00 is $4500.I will have to get crates and the watermelons will be stacked side by side along the trailer with no tarp.
I then find a restaurant in Biloxi, MS to buy the truckload.I was going to make a lot of cold calls this morning because a truckload of watermelon would be $7500-$8000.With $400 in fuel for a roundtrip run, my profit would be around $3,000.Just imagine, making $3000 for driving 800 miles.That is $3.75/mile.
I was telling my brother that every damn idea has either a gate keeper(regulations or a freaking broker) or a door closed.I was hoping to contact about 10 SMALL restaurants to distribute that truck load to.
BIGDIESEL and some of you independent reefer haulers, please shed some light.I am not just hauling but I am having them planted and buying them and selling.Not just Biloxi but the Georgia Farmers Market is also right around the corner to investigate.Please don’t tell me I need to have a broker’s freaking licence to sell to a small restaurant.I know all about machinery and driving vehicles on my stepdeck but nothing about fruits.
chris1
10-23-2009, 01:32 PM
Just a few answers.
You need(don't be caught without it)a business license and registered with the state the "buyer" is domiciled. You can deliver to any state.
When you purchase the "food product" you assume the liability when you sell it. Something is wrong with it you're the first party they go to.
Most restaurants operate under contract with one (or more) food service providers. If they buy outside the provider they may lose the contract.
Many "sellers" of food products operate under end user agreements.
Money can be made in it but there are many regulations to be followed.
RostyC
10-23-2009, 02:00 PM
I've thought of doing this as well, only with other commodities (not food). I'd sell it myself or partner up with some one who has a location and do it on a consignment type of deal.
Rev.Vassago
10-23-2009, 02:02 PM
Why would a restaurant need (or want) a truckload of watermelons?
If you think you're going to get roadside prices selling the entire load at once, you're fooling yourself.
Would the farmer have his crop insured against weather like drought, excessive rain etc..? If not then you must buy your own or take the entire risk of losing your money to "an act of god". I'm also wondering what an eatery would want with an entire truck of watermelons. You might get away with a few here and there to small places but most large, chain ones broker all of their food from one vender. You might get lucky but I'm thinking no.....
Would the farmer have his crop insured against weather like drought, excessive rain etc..? If not then you must buy your own or take the entire risk of losing your money to "an act of god". I'm also wondering what an eatery would want with an entire truck of watermelons. You might get away with a few here and there to small places but most large, chain ones broker all of their food from one vender. You might get lucky but I'm thinking no.....
Cudos to you for thinking outside the box on ways to generate income.
henboy1
10-23-2009, 02:13 PM
Why would a restaurant need (or want) a truckload of watermelons?
If you think you're going to get roadside prices selling the entire load at once, you're fooling yourself.
Not a truckload for just one restaurant, but a truckload for a supply of SMALL restaurants along the Casinos strip.The prices the guy gave me is what the restaurants pay for.Then again that was just what he said.The same goes with onions but they all have their seasons and the watermelon season starts around april/may and moves up north.I may be loosing hope on such an idea.Ouch!Gatekeepers and regualtions.
RostyC
10-23-2009, 02:33 PM
Cudos to you for thinking outside the box on ways to generate income.
Are you ok dude? Is the other personality showing up today as well? :D
chris1
10-23-2009, 02:33 PM
Not a truckload for just one restaurant, but a truckload for a supply of SMALL restaurants along the Casinos strip.The prices the guy gave me is what the restaurants pay for.Then again that was just what he said.The same goes with onions but they all have their seasons and the watermelon season starts around april/may and moves up north.I may be loosing hope on such an idea.Ouch!Gatekeepers and regualtions.
Most restaurants order late day for next day delivery. That's why the are supplied by distributors who have product on hand. Again you will be up against end users and/or contracts with distributors.
RostyC
10-23-2009, 02:35 PM
Most restaurants order late day for next day delivery. That's why the are supplied by distributors who have product on hand. Again you will be up against end users and/or contracts with distributors.
True, when I had my food truck I would order late in the afternoon and go pick it up that afternoon or early the next morning.
chris1
10-23-2009, 02:41 PM
We deal in this with mushrooms 7 days a week/365 days a year never closed. Even if you get a few to buy from you a distributor will come in and cut the price. If you think truck brokers cut prices try food brokers. You also have the "freebee's" that you give. You supply someone for free before they decide to buy,if they ever do.
Rev.Vassago
10-23-2009, 03:14 PM
Not a truckload for just one restaurant, but a truckload for a supply of SMALL restaurants along the Casinos strip.The prices the guy gave me is what the restaurants pay for.Then again that was just what he said.The same goes with onions but they all have their seasons and the watermelon season starts around april/may and moves up north.I may be loosing hope on such an idea.Ouch!Gatekeepers and regualtions.
Are you talking Vegas? You might want to give second thought to bypassing a Vegas food distributor. You might end up with a new pair of concrete boots.
Plus I can't honestly imagine a restaurant chain is going to buy produce from an unknown. The liability in that would be astronomical.
Bigmon
10-23-2009, 04:32 PM
Rev, I think he's talking about the casinos along the gulf coast. Biloxi, Mobile, etc. The Rev has a point that if there is lots of money there is also some muscle.
The other thing is are the buyers paying COD or do you have to bill them. It's hard to repo food if they don't pay.
If you have a step deck I see homeowners advertising that they need things like trees, rocks etc. that are too big for a van hauled from their yard. You'll compete against landscapers, but pulling up in a step deck would certainly show them you mean business. :)
chris1
10-23-2009, 04:35 PM
I know a couple of people who do mix produce in straight trucks and sell out of the truck. They still have to have local/state license and meet the health codes.
no_worries
10-23-2009, 05:02 PM
It can be done, but it takes a lot of work to find and keep customers. You're going to have to go off the beaten path and get creative when it comes to securing customers. You're not going to cherry pick the "low hanging fruit" from established distributors.
henboy1
10-23-2009, 08:15 PM
Rev, I think he's talking about the casinos along the gulf coast. Biloxi, Mobile, etc. The Rev has a point that if there is lots of money there is also some muscle.
The other thing is are the buyers paying COD or do you have to bill them. It's hard to repo food if they don't pay.
If you have a step deck I see homeowners advertising that they need things like trees, rocks etc. that are too big for a van hauled from their yard. You'll compete against landscapers, but pulling up in a step deck would certainly show them you mean business. :)
I am always rsearcjing on things to do.Who are these homeowners you speak of?Are these the same low ballers who advertise on uShip - The Online Shipping Marketplace - Ship Freight, Furniture, Vehicles or Moves (http://www.uship.com?Are) these the one-homeowner who advertise to move their trees without having a boom or crane?If this idea seem too hard I will not even make those cold calls.I havn't made those calls yet, as I am hoping some of you guys have tried something like this.
I also have two more ideas that I may work on:
1.As I went to ADESA Auctions (http://www.adesarigs.com/) to check out their auctions, I saw many dealers buying trucks.I then gave a couple my business cards and told them I could haul a couple of cars to their dealerships.The first question was, how many can you haul on your trailer?As I told him 3 full size cars and 1 small one, the look he displamyed didn't look promising.These tow truck drivers get $60-$70 a car to drive about 50 miles.If I have to haul 4 cars from an auction, the gross will be $60/car multiplied by 4 is $240.$240 to haul 4 cars for a 50 mile run is not worth it to me.All the work to load those cars on my ramps and chain them down will be too much work for the money.In the back I saw all these car haulers loading cars that was purchased at Adessa.The competition and the money being paid rulled that out.
2.My second adventure was with https://www.rbauction.com/member/redirect.jsp?fn=mp_generalinfo.
I sent them my w-9,insurance and authority info.They did say they had a couple of guys they use at the auction.They have an auction coming up on 12-15 in Georgia.I think I will go out there and set up shop.I will give out business cards to some of these machinery dealers(sunbelt rentals,JLG and Case).Most of them sometimes need their excavators,bocats,loaders and skid steers hauled to their yard or place of business.I am thinking two excavators on my bottom deck and any misclenous stuff on the top deck.The challenge is getting a truckload going to the same area or enroute.Let's say, I have 2 excavators and bunch or buckets going (legal) 300 mile away.I don't think I can loose charging $1100 or work with him on a reasonable price that benefits .I plan on setting up shop the day of the auction and just solicit while they already have me in the system to haul for them.All these auctions have their own ramps and so I wouldn't even need to use mine.
I personally think this plan #2 will be much easier to do than #1 or the grocery stuff.
A month in getting my authority, a direct shipper(Sunbelt Rental) posted a load on ITS for a truck to haul different equipment they had bought at a Dallas auction.I booked the load without giving them my w-9.I got paid cash when I got there.The point is, there are many machinery dealers out there that buy stuff from auctions like www.rebelauctoauction,Ritchi Brothers and martin and martin auctions.They just need people like me.I will give this one a chance while working on some other one.
Bigmon
10-23-2009, 08:49 PM
Henboy....the homeowners I was talking about were referrals from Realtors and Property Management companies. They had flyers in the office of homeowners needing things done. Some were willing to pay good and some where cheap.
Dealers at Adesa pay wholesale rates to move cars so you're fighting a tough battle with them. There was a guy named Aswego that used haul cars in CA 170 miles for $90. Even if it was just 1 car he'd still make the trip. He said they were back hauls. He's not around anymore. $3.00 fuel croaked him.
no_worries
10-23-2009, 09:56 PM
There are lots of guys out there who have auction business as their bread and butter. There's a guy over on the OOIDA board that's been doing it out of FL for years. He's had to pretty much give it up due to rates. Most Ritchie Bros. or Taylor & Martin auctions will have several of the big flatbed carriers there with booths set up. No reason you can't be there too...you just have to undercut them to get the business. From the little I know of that biz, auction buyers are looking solely at who can do the job cheapest.
Are you ok dude? Is the other personality showing up today as well? :D
sure you don't have me mixed up with someone else? :)
A lot of car dealers buy from auctions and bring them right to their dealerships. Have you thought of contacting them? You wouldnt have to go to the auctions. Just be where the dealer wants you to be.
henboy1
10-24-2009, 11:14 AM
A lot of car dealers buy from auctions and bring them right to their dealerships. Have you thought of contacting them? You wouldnt have to go to the auctions. Just be where the dealer wants you to be.
I talked to 2 tow truck drivers who are almost going out of business.They get $60/car to drive about 50 miles from the auction.On one loaded trip(2-3 cars), they make $120-$180.That may seem good for a flatbed straight truck getting 9-11mpg and with insurance costing about $$170/month.These guys haul 2-3 cars at a time and make 3 rounds a day from the auction, and this is if they are not competing with other haulers on the auction lists.I can haul 3 large and 1 small one and I know what they would wanna pay would be chump change.Heck, I can run local loads from GA and get between $200-$300 a load that requires strapping/chaining and driving.There is much more work involved when using ramps for the top deck and the lower deck.Last night this dealer gave me the scoop on the current rates he pays to haul cars to his dealership.I am better of doing Ritchie Brothers than the Adessa Car auction.
Almost 2 yrs ago, you guys remember a tow truck driver who went and got his authority and was hauling cars from Copart and some of these auto salvage yards?The guy had a flatbed truck(straight) that could haul about 5 cars at a time.I forgot his handle but he was from the Ky area.He came on here to tell his story but he vanished after 2 months of making it.Where is he?
RostyC
10-24-2009, 11:46 AM
sure you don't have me mixed up with someone else? :)
Earlier in the thread you quoted yourself. Looked like you were talking to yourself. :)
Bigmon
10-24-2009, 03:54 PM
Almost 2 yrs ago, you guys remember a tow truck driver who went and got his authority and was hauling cars from Copart and some of these auto salvage yards?The guy had a flatbed truck(straight) that could haul about 5 cars at a time.I forgot his handle but he was from the Ky area.He came on here to tell his story but he vanished after 2 months of making it.Where is he?
The guy you're talking about is Darren. About 3 months ago Gman and myself asked about him. He replied back here. You'd have to look up the thread, but he sold the truck and is doing something else. Copart is one of the cheapest shippers and he had to drive to several lots, find the cars, walk in the mud and jump start the cars. It was too much grunt work for too little pay for 12-14 hours a day. I think he had a new baby at home too.
RostyC
10-24-2009, 04:16 PM
The guy you're talking about is Darren. About 3 months ago Gman and myself asked about him. He replied back here. You'd have to look up the thread, but he sold the truck and is doing something else. Copart is one of the cheapest shippers and he had to drive to several lots, find the cars, walk in the mud and jump start the cars. It was too much grunt work for too little pay for 12-14 hours a day. I think he had a new baby at home too.
I was wondering what happened to him also. I missed that thread I guess.
Hoyt602
10-25-2009, 01:38 AM
Got news about RB. You can't just show up and expect them to let you set up a table. We checked into the Atlanta location and they advised they were full. Every yard manager determines how many and who they'll let in there. It tends to be very competitive. The few direct equipment dealers we have hauled for recently weren't the most stellar when it comes to paying on time. We can't afford to give terms anymore. Either COD or credit card payment. Went by one dealer on Thursday that owes us $2500 from Feb. Building is vacant with a for lease sign in front. No wonder we haven't been able to contact him. Just be wary, some of these dealers will use multiple carriers and brokers and live off your credit. Keep in mind these buyers tend to be on the cheap side as well.
I talked to 2 tow truck drivers who are almost going out of business.They get $60/car to drive about 50 miles from the auction.On one loaded trip(2-3 cars), they make $120-$180.That may seem good for a flatbed straight truck getting 9-11mpg and with insurance costing about $$170/month.These guys haul 2-3 cars at a time and make 3 rounds a day from the auction, and this is if they are not competing with other haulers on the auction lists.I can haul 3 large and 1 small one and I know what they would wanna pay would be chump change.Heck, I can run local loads from GA and get between $200-$300 a load that requires strapping/chaining and driving.There is much more work involved when using ramps for the top deck and the lower deck.Last night this dealer gave me the scoop on the current rates he pays to haul cars to his dealership.I am better of doing Ritchie Brothers than the Adessa Car auction.
Almost 2 yrs ago, you guys remember a tow truck driver who went and got his authority and was hauling cars from Copart and some of these auto salvage yards?The guy had a flatbed truck(straight) that could haul about 5 cars at a time.I forgot his handle but he was from the Ky area.He came on here to tell his story but he vanished after 2 months of making it.Where is he?
I had no idea what it paid, it was just an idea. Dosn't seem like much money to me. I agree, a hotshot rig might make a go of it.
Earlier in the thread you quoted yourself. Looked like you were talking to yourself. :)
lol, oops!
LOAD IT
11-01-2009, 01:22 PM
Henboy,
Have you contacted Sunbelt since you did that 1 load? They may be your "in" into the next auction. Get you a booth at the next auction and have a few other flats and steps on standby near the auction when the shipping starts, if you need something posted, give me a call. That produce sales idea probably wont work but there is definitely some profit if you could make it work. You may need a PACA license and you will definitely need a retailer/vendor/peddlers license in the area you are selling in. Keep us posted. Load It
Kranky
11-01-2009, 02:17 PM
Thinking About Hauling Watermelons
Maybe you should consider hauling this type of watermelon:
http://www.classadrivers.com/forum/survey-says/38303-spiked-watermelon.html
:lol::lol2::lol::lol2:
henboy1
11-01-2009, 10:41 PM
Henboy,
Have you contacted Sunbelt since you did that 1 load? They may be your "in" into the next auction. Get you a booth at the next auction and have a few other flats and steps on standby near the auction when the shipping starts, if you need something posted, give me a call. That produce sales idea probably wont work but there is definitely some profit if you could make it work. You may need a PACA license and you will definitely need a retailer/vendor/peddlers license in the area you are selling in. Keep us posted. Load It
I made a few rounds at the GA farmers market, and it seems the smaller venors would be interested.I only talked to 3 vendors and there are more out therfe that I need to talk to.I could never find the phone# for the Cherry Albitron Farmer from Cordele, Ga.I will have to ask my friend who suggested this whole idea for this farmer's #.I pretty much slowed down on this research until april/may when the watermelon season comes around.The few I talked to wanted a price and did seem interessted, but I cannot give a price without getting the source.
I also embarked on another opportunity from Craig lists.This guy had an Ad to haul cememt slab etc..
This will be local runs to his customers.The cement slab or whatever cement weighs 3500ibs each and 10-15 can be loaded at one time.Unfortunately he wants the carrier to have their own forklift to unload the slab at his customer's sites.I told him that will be impossible becasue the guys who have their own forks also only haul their own local products for their company and they are not your typical carrier.This guy now goes and gets a forklift and wants me to get in touch with him when I get back from the road.Since I have ramps this may be a go.His customers are within a 40 mile radius and I will drive his forklift up my ramp and onto my deck and chain it down..I will then go deliver by unloading with his forklift.What is a reasonable price to charge this shipper to maintain this relationship with him?
.Please be reasonable on a price that will benefit both me and this shipper.His loads are more like once or twice a week till business picks up.From talking to him, he seems like a "small shipper" who recently got a contract from either DOT or a construction company to make these bricks/cememt slabs.I know he has advertised a while in CR, and I believe no one had a forklift to deliver his products.
He did state $300-$500 a run in CR but I wanted an opinion.
henboy1
11-01-2009, 11:07 PM
I talked to 2 tow truck drivers who are almost going out of business.They get $60/car to drive about 50 miles from the auction.On one loaded trip(2-3 cars), they make $120-$180.That may seem good for a flatbed straight truck getting 9-11mpg and with insurance costing about $$170/month.These guys haul 2-3 cars at a time and make 3 rounds a day from the auction, and this is if they are not competing with other haulers on the auction lists.I can haul 3 large and 1 small one and I know what they would wanna pay would be chump change.Heck, I can run local loads from GA and get between $200-$300 a load that requires strapping/chaining and driving.There is much more work involved when using ramps for the top deck and the lower deck.Last night this dealer gave me the scoop on the current rates he pays to haul cars to his dealership.I am better of doing Ritchie Brothers than the Adessa Car auction.
Almost 2 yrs ago, you guys remember a tow truck driver who went and got his authority and was hauling cars from Copart and some of these auto salvage yards?The guy had a flatbed truck(straight) that could haul about 5 cars at a time.I forgot his handle but he was from the Ky area.He came on here to tell his story but he vanished after 2 months of making it.Where is he?
These are some of his emails.
that would probably work fine, though to be honest with you, I am not exactly sure of what a stepdeck trailer is. If you could send me a picture of it, that would be great. Pretty much anything that has no rails and can be loaded from the side by a forklift would work fine. Can you tell me what the length of the trailer is also? If you want to give me a call sometime, we can talk about the specifics of the job, and maybe talk about rates and such.
Thank you,
That trailer would work fine. I will talk to you when you get back. I have had to turn away business because I cannot deliver these pallets, so I am looking forward to being able to do so. I wish we could figure out a way to unload them at the delivery site if they do not have a forklift though. Any ideas on that?
I have a forklift, but the ramps would have to be pretty long so that it isn't too steep for the forklift.
In reading some of his emails, it leads me to believe this guy can get "big" if only he can supply his customers with his products.Not just that, this Joe Smoe off this Craig Lists, has his own domain name for his company as his email and not just some free yahoo or hotmail account.I will talk to him again when I get back from the road.
I've moved a few loads out of RB auctions. You might want to consider asking an equipment dealer in your area if he is planning to buy anything.
I don't know anything about produce, but I like your idea. Last winter there was a shortage of wood pellets in my area. A few hours on the net and I found a manufacturer that would sell to me. I bought them, trucked them and sold them. There are opportunities like that if you can find a demand.
RostyC
11-02-2009, 01:42 PM
I've thought of doing this as well, only with other commodities (not food). I'd sell it myself or partner up with some one who has a location and do it on a consignment type of deal.
I don't know anything about produce, but I like your idea. Last winter there was a shortage of wood pellets in my area. A few hours on the net and I found a manufacturer that would sell to me. I bought them, trucked them and sold them. There are opportunities like that if you can find a demand.
That's the idea I was talking about that I posted earlier in the thread. Thanks for stealing my idea and doing it before me. :D
Wood Pellets and salt or calcium for ice melting was the two I had in mind. Right now I'm a little short on cash to work on these idea's. I'm guessing I'd have to buy the truckload up front. Would you mind pm'ing me the place you bought the pellets from?
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