User Tag List

Reply
 
LinkBack Thread Tools
  #11  
Old 10-21-2006, 01:07 PM
GMAN's Avatar
Administrator
Site Admin
Board Icon
Join Date: Feb 2005
Location: Tennessee
Posts: 17,097
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

The trucking business isn't bad for everyone. If it were, it would not have survived up to this point. Business runs in cycles. Trucking is no exception. Those cycles can differ from one segment of the industry to another. There are times during the year when business is good. There are also times when business will be slow. You just need to prepare for the slow times. I usually take off from around Christmas until after the first of the year. Things tend to be slow for flats during that time, so it is usually a good time to visit with family and enjoy the holiday. Right now we are in an unusually slow business cycle. Those who are heavily laden with debt and running for cheap rates will find it difficult to survive. Those who are either debt free or have a low debt and run for decent rates will likely fare much better. Part of this slow down has to do with it being an election year. Things always seem to slow down somewhat during an election year. High energy costs have also greatly contributed to the slowing economy. But, again, it is only a business cycle and will pass. Things will get better. We are already seeing some improvement as some trucks are moving into the normal Christmas season. The government is again moving more freight, since they just entered a new fiscal year. In business it is sometimes difficult to resist over spending when things are going great. Just remember, things will slow down. The world isn't coming to an end, it is only a regular business cycle. Those who prepare will survive and prosper. Those who don't will fail.
Reply With Quote
  #12  
Old 10-21-2006, 01:19 PM
Sonny Pruitt's Avatar
Board Regular
Join Date: Sep 2006
Location: Mahwah,NJ
Posts: 450
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

one other thing I can suggest is not to keep all your eggs in one basket.
You could work for a CH type company because of their rep and they have quick pay.
If you find your own shipper and they pay in 30 days you could run into a problem with cash flow.
First of all 30 days is never 30 days.
But lets say he has work for you that pays 4000 a week.
Its easy and you are very happy.
In one week he owes you 4000
in two weeks he oowes you 8000
in 3 weeks he owes you 12000!!!
in 4 weeks (30 days) he owes you 16000!!!!
in 5 weeks you are ready to shoot yourself and you call and "they are cutting the check thursday" thats over 5 weeks ($20,000)
so on week 5+ you get a check for $4000
you work for them every week from then on
they pay your 4000 like clockwork
but they will always have your 20k
the same thing can happen if you use 30 day pay brokers
you have to have a good mix of brokers-shippers
Reply With Quote
  #13  
Old 10-21-2006, 01:33 PM
GMAN's Avatar
Administrator
Site Admin
Board Icon
Join Date: Feb 2005
Location: Tennessee
Posts: 17,097
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

That is where factoring can come in handy. You lose some of the profit, but have the cash flow until you can build your reserves. Cash flow has put a lot of people out of business. There are factors who have a non-recourse agreement. In other words, they buy your receivables, usually at a higher discount rate, but assume all the risks. If the shipper or broker fails to pay, you still have your money and they cannot charge back anything to you. Some factors have a lower rate, but you can still be charged back if the shipper doesn't pay by a certain time. I have one with whom I deal and they charge 5%. I have my money within 1 day from when they receive my bills. I like them because I don't have to factor all my receivables. I only send them what I want. Some factors require you to send them a minimum amount of receivables each month and have minimum fees. You need to be careful when signing with a factor. Some have some very restrictive clauses and hidden fees. I don't factor everything, so this factor works well for me. I can stop factoring a receivable at any time. Whether you like the idea of factoring or not, it is a way to free needed capital to run your business.
Reply With Quote
  #14  
Old 10-21-2006, 03:23 PM
Sonny Pruitt's Avatar
Board Regular
Join Date: Sep 2006
Location: Mahwah,NJ
Posts: 450
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

When dealing with shippers directly you are walking on thin ice as a new carrier.
There could be a problem if you use a "strong arm" factoring co (and there is no way for you to know) that keeps pestering the shipper for "their $$$"
Reply With Quote
  #15  
Old 10-21-2006, 04:09 PM
gcal's Avatar
Board Regular
Thread Starter
Join Date: Apr 2006
Posts: 220
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

Quote:
Originally Posted by Sonny Pruitt
one other thing I can suggest is not to keep all your eggs in one basket.
You could work for a CH type company because of their rep and they have quick pay.
If you find your own shipper and they pay in 30 days you could run into a problem with cash flow.
First of all 30 days is never 30 days.
But lets say he has work for you that pays 4000 a week.
Its easy and you are very happy.
In one week he owes you 4000
in two weeks he oowes you 8000
in 3 weeks he owes you 12000!!!
in 4 weeks (30 days) he owes you 16000!!!!
in 5 weeks you are ready to shoot yourself and you call and "they are cutting the check thursday" thats over 5 weeks ($20,000)
so on week 5+ you get a check for $4000
you work for them every week from then on
they pay your 4000 like clockwork
but they will always have your 20k
the same thing can happen if you use 30 day pay brokers
you have to have a good mix of brokers-shippers


wow! that dont sound good at all.
Reply With Quote
  #16  
Old 10-21-2006, 05:07 PM
LOAD IT's Avatar
Senior Board Member
Join Date: Sep 2006
Posts: 725
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

Gcal what type of wagon do you have? I will PM you some customers in your area that ship daily, however I need to know the type of trailer that you pull. Also you need to use brokers to get back to your customers unless you are good enough salesman to get them to pay you for coming back to them empty, they may pay you. Dont rely on brokers for your daily business, but you will need brokers to stay alive until you find your niche.
Reply With Quote
  #17  
Old 10-22-2006, 08:44 PM
gcal's Avatar
Board Regular
Thread Starter
Join Date: Apr 2006
Posts: 220
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

Quote:
Originally Posted by LOAD IT
Gcal what type of wagon do you have? I will PM you some customers in your area that ship daily, however I need to know the type of trailer that you pull. Also you need to use brokers to get back to your customers unless you are good enough salesman to get them to pay you for coming back to them empty, they may pay you. Dont rely on brokers for your daily business, but you will need brokers to stay alive until you find your niche.
fld 120 flat top. 350 big cam cummings, 9 speed, with 390 rears. short wheel base and a sliding 5th wheel. good enough ?? but i dont have my own trailer YET.
Reply With Quote
  #18  
Old 10-22-2006, 10:56 PM
LOAD IT's Avatar
Senior Board Member
Join Date: Sep 2006
Posts: 725
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

Quote:
Originally Posted by gcal
Quote:
Originally Posted by LOAD IT
Gcal what type of wagon do you have? I will PM you some customers in your area that ship daily, however I need to know the type of trailer that you pull. Also you need to use brokers to get back to your customers unless you are good enough salesman to get them to pay you for coming back to them empty, they may pay you. Dont rely on brokers for your daily business, but you will need brokers to stay alive until you find your niche.
fld 120 flat top. 350 big cam cummings, 9 speed, with 390 rears. short wheel base and a sliding 5th wheel. good enough ?? but i dont have my own trailer YET.
Let me know when you get a trailer. I started with authority, tractor and no trailer. I ended up buying one, noone wanted to lease to a newbie at a decent price. Your truck brings back memories, I had a red 92 120flattop, 425 Cat, 18 speed Rockwell, 1 million miles. My wife hated that truck! She called it a Red Witch or something like that.
Reply With Quote
  #19  
Old 10-22-2006, 11:03 PM
gcal's Avatar
Board Regular
Thread Starter
Join Date: Apr 2006
Posts: 220
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

hil
Reply With Quote
  #20  
Old 10-22-2006, 11:20 PM
LOAD IT's Avatar
Senior Board Member
Join Date: Sep 2006
Posts: 725
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Mentioned: 0 Post(s)
Tagged: 0 Thread(s)
Default

Learn all that you can from your mechanic. Now that you have a big truck, you have to get big wrenches they will save you money. Stay away from the dealer unless you have money to give away as you noticed with their $2500 quote that you had done for $700. They are in business and so are you. Good luck and let me know when you get that trailer. Its christmas tree time really soon. How far do you plan on running this truck from home?
Reply With Quote
Reply





Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are On



All times are GMT. The time now is 11:22 AM.


User Alert System provided by Advanced User Tagging v3.3.0 (Lite) - vBulletin Mods & Addons Copyright © 2024 DragonByte Technologies Ltd.