For the folks that have their own authority....

[allan5oh]

How do you get the foot in the door with a customer?

Do you haul a load for a broker, in the meantime, slip the shipping manager your card?

What kind of "edge" do you try to sell them? I would have my cell on 24 hrs a day, is that really important?

What about stone cold sales calls? How well do those work?

[GMAN]

Most brokers have language in their contracts which forbid carriers from back soliciting their customers. If you solicit them after hauling a load through their broker, and they find out, you could be liable for a percentage of anything you haul for them for about 1 year. It is difficult for a broker to collect or enforce this clause, but most have them. The better brokers don't bother since they know that as long as they provide a good service they can keep the account.

If the shipper asks for your business card or suggests doing business with you directly then you are not back soliciting, but it could create some problems in trying to prove it, but not impossible. If you want to develop your own shippers then you need to get out and start knocking on doors. You can make phone calls, send letters of introduction, business cards, brochures, etc., to get your name out there. You will likely need to make a lot of calls before you find a shipper who is willing to do business with you.

I have had a thought about a dispatch service where several carriers could pool together and service some of the larger accounts. It would provide the capacity the shipper wants without giving away the farm. Many shippers prefer doing business direct with carriers. The reason so many use brokers is that they can deliver the capacity to take care of the shipper's needs. Developing your own customer base takes time. Contrary to what some have stated, you can make a living using brokers. You can usually make more with your own shippers. You CANNOT make a living by taking cheap loads from either of them. Find brokers who have better rates and try to stick with them. Stay away from brokers who consistently have cheap freight. Find those who have good rates and start making sales calls as you can to develop your own shippers. You could try to locate those for outbound freight and use brokers to get you back to service your shipper. Eventually you can find shippers on both ends.

[pepe4158]

Yeah 90 days I think the agreement states I sign that I cant haul for the shipper after accepting a broker load....its ruff starting out and trying to get shippers direct, most dont trust you enough to give you a shot, but suprisingly will use the big carriers who routinly lose their freight on their yards

[LOAD IT]

Everything G Man said.

[pepe4158]

SSay G-mam...isnt there a board right now like that?...I mean that pools some resources together?
Heard there was but forgot about it?

[RostyC]

Pepe, I think you're thinking of this one. I don't think it's what GMAN is talking about though.

GMAN, you'd probably just be considered a (geez G I respect you a lot but I have to say the word)...................... Broker :shock: :shock:




Maybe a little more explanation.

[rank]

We did 40 loads for one shipper last year. I think I called the broker on the first load and the subsequent 39 loads the broker called me. Yes the broker is still involved because that's the way the shipper wants it, and I certainly do not mind because rates are good and they pay fast. The shipper often tells the broker to call us and pay more if necessary.

You need to be able to make things easy (save money) for your customer. Figure out how you can do that and you will get shippers. Most guys with one truck will only make things more difficult, so your only way to save them money is to be the low rate. You can be more competitive pulling for local shippers

[GMAN]

Pepe, I think you're thinking of this one. I don't think it's what GMAN is talking about though.

GMAN, you'd probably just be considered a (geez G I respect you a lot but I have to say the word)...................... Broker :shock: :shock:




Maybe a little more explanation.

Pepe, if you are talking about Realtime, rates are very low. I tried the service for one month and canceled. I can get better rates than they offer through a broker. Some shippers offer loads through them but the rates are very low, at least from what I saw.

RostyC, when I say dispatch service, it would not be brokering. Basically, a dispatch service would do the hunting and negotiating for you but represent the owner operator or carrier rather than the shipper. A broker works for the shipper. The broker usually makes more money when he gets a carrier to haul a load for the least amount of money. A dispatch service would make more money as the carrier earned more, at least if it was set up as a percentage of the rate. The dispatcher would watch the loadboards, make calls to brokers and shippers in an effort to find the best paying loads. The dispatch service would only work with those who had their own authority and insurance. It would be similar to leasing on to a carrier but you would be responsible for all insurance, logs and compliance issues. The dispatch service would only search and book loads for you. The other difference is that you would pay a much smaller percentage of the rate than if you leased to a carrier. Most carriers keep 25% of the line haul. But there is a lot of expense involved when you lease on owner operators. You see, when you lease to any carrier they are responsible for paying the cargo and liability insurance on each truck operating under their authority. They must also participate in a drug consortium, check logs, etc., It is expensive to lease on owner operators. When you look at all the expenses a carrier has, the percentage they take doesn't look so bad. By utilizing a dispatch service, you get rid of the most time consuming aspect of your operation, finding profitable loads. I spoke with one guy the other day who has a dispatch service and charges $250/week. According to him, his people do very well. I think a percentage is more fair. That way the carrier only pays when they book a load. If a carrier takes off a week under a flat rate system, he is still obligated to pay the dispatch service. A percentage is more equitable since you only pay for the service as it is rendered. If you take a week or two off then your expenses stop. With percentage, the higher paying the load the more everyone makes. There is more of an incentive for the dispatch service to find the better paying loads. If the carrier wants more services, then the percentage could go up accordingly. The carrier or owner operator still has the freedom to run when and where they want. They also decide whether they want to take a load or not. The dispatch service would work in behalf of the carrier or owner operator.

[jonboy]

I bet I lose more than $250 per week because I sometimes take loads within my parameters (especially in low freight areas), without taking the time to search for better paying loads. I pull some of the same loads every week or two, just because there is some familiarity with the route, pickup and deliver.

My wife helps me with some of the calls, but she really can't negotiate the rate very well.

I would think a dispatch service would really need to be ex brokers, with contacts??? I think the dispatch pool is a great idea.

jonboy

[GMAN]

I don't think one would need to be an ex broker to make it successful. Contacts would be good, but negotiating skills would be most helpful. I think it could work. I suppose that I just need to decide whether I want to pursue it or not. Looking for good loads takes a lot of time. It usually doesn't take much of an effort to throw something on the truck, but finding the best loads takes time. Most smaller carriers with whom I talk seem to spend most of their time finding good loads. They don't make money until they move freight.

[ISMAR132]

I'm with you Gman your idea will be perfect for those of us who have been driving for many years, but have little experience in negotiating loads.

[GMAN]

I will let you know if I decide to proceed with this idea, ISMAR132. Part of what I am considering is how to make the fees fair for both sides. A percentage would probably be most fair to both. That way there isn't anything to pay out if the owner isn't running. Also, it would be an incentive for the dispatcher to perform and get higher rates. Another consideration is how the owner would make payments to the dispatch service. I would not want to get into a long or high receivables situation with this type of service. I would prefer something that pays as we go. I think that it would be best to pay with each load. That way there would not be any billing costs. Payment would be due when the owner accepts the load. The method would need to be worked out.

[RostyC]

I will let you know if I decide to proceed with this idea, ISMAR132. Part of what I am considering is how to make the fees fair for both sides. A percentage would probably be most fair to both. That way there isn't anything to pay out if the owner isn't running. Also, it would be an incentive for the dispatcher to perform and get higher rates. Another consideration is how the owner would make payments to the dispatch service. I would not want to get into a long or high receivables situation with this type of service. I would prefer something that pays as we go. I think that it would be best to pay with each load. That way there would not be any billing costs. Payment would be due when the owner accepts the load. The method would need to be worked out.

You should pursue it GMAN, if there's not a lot of people doing it, or doing it successfully, then you don't have much competition. Percentage or flat rate per load is the way to go, business owners wouldn't think they have to pay for nothing. I know I'd be leery of a flat rate per week because there's no reason for them to perform well.

As far as payment you can bill to a credit card as you go. Like I do with EZ Pass or the service I just started to use to pick up jobs in my line of work.
I get an invoice through email and they pull it from the credit card I gave them.

The only hard part in starting anything is finding people to do the work as you want it done. I'm sure you know that though.

Just use the Paypal feature in Ebay and your all set.

[GMAN]

I appreciate the input, RostyC and Steve. I don't know anything about the Paypal or how it works. I think that I will check it out. It would probably work out well to have credit or debit card capability. I need to check with my bank to see what is involved taking credit cards. I already have about everything in place that I need to get this started. A friend of mine suggested a graduating fee structure starting at around 4% and going up to about 6 or 7%. I think that might be a little confusing. I would think something around 5-10% as a flat rate would be easier and more workable. I have found that things work better when kept simple. The fee would not be that high for the operator and yet enough to warrant me spending the extra time to find good loads. Having more trucks would increase capacity and could make it easier to get a foot in the door to some shippers and possibly better rates. If the operator didn't want to run, then there would be no money to pay out. If I decide to do this, I don't think that I would want too many operators. This one guy I spoke with had 16 independents with whom he worked. He is doing well with them, but charges a flat rate per week. These people pay a fee whether they run or not. I received a call this week from another guy I know who has his authority. He is thinking about giving it up, sell his equipment and driving a truck for someone else. He is finding it difficult to find shippers and run the truck. He is just not getting the rates he needs to make a decent profit. I thought that since it is difficult for me to do a lot of traveling right now, this might be something to consider. Perhaps we could even offer a broader range of services at a later date, such as fuel taxes, etc., I am just not sure that I want to work that hard.

[baileydale]

GMAN it is really hard for me to understand how I feel like I trust you so much, having never met you but I feel like I do. You are always very helpful and even when I disagree with you ( very seldom )I feel you are putting all the effort you have into helping people. That said, I am currently leased on to a small company and doing OK but have been playing with the idea of my own authority; if you do this I would like very much to be part of it. I currently run a 97 W900, 48X102 combo steel/alu spread.

You may have trouble getting a Mastercard or Visa account. They don't give them out too easily.

Paypal is a no brainer and once your setup the money goes right into your checking account. You don't charge a credit card. Your customer inputs their credit card with the amount of payment and it gets deposited into your account.

[LOAD IT]

I appreciate the input, RostyC and Steve. I don't know anything about the Paypal or how it works. I think that I will check it out. It would probably work out well to have credit or debit card capability. I need to check with my bank to see what is involved taking credit cards. I already have about everything in place that I need to get this started. A friend of mine suggested a graduating fee structure starting at around 4% and going up to about 6 or 7%. I think that might be a little confusing. I would think something around 5-10% as a flat rate would be easier and more workable. I have found that things work better when kept simple. The fee would not be that high for the operator and yet enough to warrant me spending the extra time to find good loads. Having more trucks would increase capacity and could make it easier to get a foot in the door to some shippers and possibly better rates. If the operator didn't want to run, then there would be no money to pay out. If I decide to do this, I don't think that I would want too many operators. This one guy I spoke with had 16 independents with whom he worked. He is doing well with them, but charges a flat rate per week. These people pay a fee whether they run or not. I received a call this week from another guy I know who has his authority. He is thinking about giving it up, sell his equipment and driving a truck for someone else. He is finding it difficult to find shippers and run the truck. He is just not getting the rates he needs to make a decent profit. I thought that since it is difficult for me to do a lot of traveling right now, this might be something to consider. Perhaps we could even offer a broader range of services at a later date, such as fuel taxes, etc., I am just not sure that I want to work that hard.

GMAN, I think you are the right person for a dispatch service. You are honest, forthright and straight forward. I think you should charge a minimum flat rate per load, say $35 minimum and then you take a percentage after that, so you will at least make $35 for each load you locate, dispatch, baby sit through delivery, but you let the carrier invoice and worry with collecting the invoice. I think a dispatch service is far better than a freight brokerage. We all know how everyone distrusts brokers. Good Luck.

[GMAN]

GMAN it is really hard for me to understand how I feel like I trust you so much, having never met you but I feel like I do. You are always very helpful and even when I disagree with you ( very seldom )I feel you are putting all the effort you have into helping people. That said, I am currently leased on to a small company and doing OK but have been playing with the idea of my own authority; if you do this I would like very much to be part of it. I currently run a 97 W900, 48X102 combo steel/alu spread.

I really appreciate your confidence, baileydale. Life would be pretty boring if we agreed all the time. I always try to be candid with people. Running your authority isn't all that difficult. Then most challenging part is finding good paying loads and the extra paperwork. I think the extra revenue is worth the effort. Some people are more comfortable leasing to a carrier. We all must find our comfort zone. It sounds like you have a good setup.

You may have trouble getting a Mastercard or Visa account. They don't give them out too easily.

Paypal is a no brainer and once your setup the money goes right into your checking account. You don't charge a credit card. Your customer inputs their credit card with the amount of payment and it gets deposited into your account.

Thanks for the info, Steve. It sounds simple. I used to have something setup with American Express some years ago with another company that I owned. There are fewer people who have American Express and their fees are higher than Visa or Mastercard. I have an established corporation, so I don't think it will be too difficult to get it set up.

GMAN, I think you are the right person for a dispatch service. You are honest, forthright and straight forward. I think you should charge a minimum flat rate per load, say $35 minimum and then you take a percentage after that, so you will at least make $35 for each load you locate, dispatch, baby sit through delivery, but you let the carrier invoice and worry with collecting the invoice. I think a dispatch service is far better than a freight brokerage. We all know how everyone distrusts brokers. Good Luck.

Thanks, LOAD IT. That is a good idea about the minimum charge. The dispatch service would work for the truck rather than the shipper or broker. I would make less with this type of service rather than leasing owner operators under my authority, but would not have the additional expense of insurance, compliance, billing, etc., I have been looking at both areas. There are a lot of up front expenses involved when you lease on an owner operators to your authority. I would probably need to either find some software to help track loads or write something simple that could be used such as in a spreadsheet. Actually, a spreadsheet might be just the thing.

[sidman82]

I'll agree with using paypal as you can avoid the charges from the credit companies.