brokers and getting loads for new owner operator ???

[charged]

I'm not an owner operator yet, but father with no previous experience just got his cdl last month and a used truck and used flatbed and is running under his own authority.

He has been getting loads from someone who gets them from a broker. So right off the bat he is losing 5% to the person who has been scheduling the loads plus whatever the original broker is getting. Obviously, this is not the way to make the most money you can.

He is planning to start scheduling loads by himself in the next two weeks through load boards once he gets set up with web access and a laptop.

I gave him the name of a broker that my boss at work is friends with. He is wary of trying to use more than one broker. I tried to tell him that using the boards he will by default be using more than one broker. Do you guys deal exclusively with one broker or many brokers? How do you guys handle the calls from brokers offering loads?

He is using a non-recourse factoring company to get paid.


Any comments, ideas, or suggestions?

[Rev.Vassago]

If he has started out by using a factoring company, he is well on his way to failure. It sounds like he jumped in without knowing what he was doing.

[charged]

If he has started out by using a factoring company, he is well on his way to failure.

I'm not so sure that is the case, but thanks for the opinion.

While factoring may not be the best choice for the long run, it seems to be working for now and he does not have to worry about not getting paid.

[BigDiesel]

No experience...... Factoring right out of the gate...... Wow.......

A song by Queen comes to mind.... Can anyone name that tune ??

[charged]

No experience...... Factoring right out of the gate...... Wow.......

A song by Queen comes to mind.... Can anyone name that tune ??

Doing All Right?

[BigDiesel]

No experience...... Factoring right out of the gate...... Wow.......

A song by Queen comes to mind.... Can anyone name that tune ??

Doing All Right?

I was thinking " Another one bites the dust "

[charged]

Factoring is going to be the reality for awhile. He knows it is not ideal. As long as he makes a decent profit I don't see the problem for him right now. The plus is he is covered in case someone does not pay.

i.e.
He takes a 1000mi job paying $2.50 a mile. The factoring fee is I think 5%. That is $125. That is the same as 27.8 gallons of fuel at $4.50 a gallon. If he gets 6.5mpg that is the same as him getting 5.5mpg.

I would be more concerned about people who are running a newer truck with a high payment. Or a truck that gets poor gas mileage. Or the trucker who is highly in debt.

This is his second income.

[charged]

Getting back on topic the real question is how most O/O's deal with brokers and how they get their loads.

[BigDiesel]

Factoring is going to be the reality for awhile. He knows it is not ideal. As long as he makes a decent profit I don't see the problem for him right now. The plus is he is covered in case someone does not pay.

i.e.
He takes a 1000mi job paying $2.50 a mile. The factoring fee is I think 5%. That is $125. That is the same as 27.8 gallons of fuel at $4.50 a gallon. If he gets 6.5mpg that is the same as him getting 5.5mpg.

I would be more concerned about people who are running a newer truck with a high payment. Or a truck that gets poor gas mileage. Or the trucker who is highly in debt.

This is his second income.

Help me understand..... How is dear ol' dad going to do a 1000 mile run when the insurance is limited to a 500 mile radius ???

Charged wrote in the New Drivers Section
Posted: Mon Jul 28, 2008 1:45 pm Post subject:

I called another 10-15 places this afternoon and none insure new drivers. I called OOIDA and they don't either.
I guess he is stuck with a 500 mile radius for a couple of years.

[charged]

Factoring is going to be the reality for awhile. He knows it is not ideal. As long as he makes a decent profit I don't see the problem for him right now. The plus is he is covered in case someone does not pay.

i.e.
He takes a 1000mi job paying $2.50 a mile. The factoring fee is I think 5%. That is $125. That is the same as 27.8 gallons of fuel at $4.50 a gallon. If he gets 6.5mpg that is the same as him getting 5.5mpg.

I would be more concerned about people who are running a newer truck with a high payment. Or a truck that gets poor gas mileage. Or the trucker who is highly in debt.

This is his second income.

Help me understand..... How is dear ol' dad going to do a 1000 mile run when the insurance is limited to a 500 mile radius ???

Charged wrote in the New Drivers Section
Posted: Mon Jul 28, 2008 1:45 pm Post subject:

I called another 10-15 places this afternoon and none insure new drivers. I called OOIDA and they don't either.
I guess he is stuck with a 500 mile radius for a couple of years.

Did you skip Geometry in school?

Let's say you have a circle which has a radius of 500 miles. The center point is where my father is based. He picks up a load near home and drives 500 miles to deliver it. He gets a load at that point to the far side of the circle which is 1000 miles away.

Anyway, that was just an example.

[BigDiesel]

Factoring is going to be the reality for awhile. He knows it is not ideal. As long as he makes a decent profit I don't see the problem for him right now. The plus is he is covered in case someone does not pay.

i.e.
He takes a 1000mi job paying $2.50 a mile. The factoring fee is I think 5%. That is $125. That is the same as 27.8 gallons of fuel at $4.50 a gallon. If he gets 6.5mpg that is the same as him getting 5.5mpg.

I would be more concerned about people who are running a newer truck with a high payment. Or a truck that gets poor gas mileage. Or the trucker who is highly in debt.

This is his second income.

Help me understand..... How is dear ol' dad going to do a 1000 mile run when the insurance is limited to a 500 mile radius ???

Charged wrote in the New Drivers Section
Posted: Mon Jul 28, 2008 1:45 pm Post subject:

I called another 10-15 places this afternoon and none insure new drivers. I called OOIDA and they don't either.
I guess he is stuck with a 500 mile radius for a couple of years.

Did you skip Geometry in school?

Let's say you have a circle which has a radius of 500 miles. The center point is where my father is based. He picks up a load near home and drives 500 miles to deliver it. He gets a load at that point to the far side of the circle which is 1000 miles away.

Anyway, that was just an example.

I hope you are not dear ol' dads business manager....

Keep posting your foibles... it will be entertaining !!!

[Double L]

I thought the insurance restriction was based off of air miles? :?

[charged]

I hope you are not dear ol' dads business manager....

Keep posting your foibles... it will be entertaining !!!

So, you're not going to acknowledge you had no idea what you were talking about in your previous post?

[BigDiesel]

I thought the insurance restriction was based off of air miles? :?

We have a winning answer here !!!!!

You win the prize LL !!!

[charged]

I thought the insurance restriction was based off of air miles? :?

I'm not sure how it works I haven't read his policy. I know him having a 500 mile radius does not limit him to 500 miles. He can travel at least double that if he is at the edge of his area and is going to the other side of his covered area.

Besides, insurance is not the problem. He has it and is covered. There is only one game in town and that is Progressive. The problem is brokers and how truckers deal with them and get their loads.

[Double L]

If I was to get my authority and be restricted to 500 air miles. I'm in Illinois about 25 miles from St. Louis so we'll use that for example. I'm based in St. Louis so my insurance would cover me for Missouri, Illinois, Arkansas, Iowa as well as parts of Wisconsin, Indiana, and Tennessee if not all them states.

[BigDiesel]

I very confused still.... maybe this link will clear some of the fog....


http://www.thetruckersreport.com/tru...questions.html

[charged]

He is in Nashville Tennessee which is a great centrally located area for him because freight is easily found within a 500 mile radius of home.

Looking at a crude map I think he can get to the following States: Georgia, Mississippi, Louisiana, Arkansas, Missouri, Illinois, Kentucky, Indiana, Ohio, West Virginia, Virgnia, North Carolina, South Carolina, Texas, kansas, Oklahoma, Iowa, Michigan, Pennsylvania, Florida, and of course Tennessee.

[charged]

I very confused still.... maybe this link will clear some of the fog....


http://www.thetruckersreport.com/tru...questions.html

I wonder what you are confused about? The topic maybe because you can't stay with it...You still confused about what radius means? Are you confused that my father just became a new O/O with his own authority and I am trying to find out more about it to see if it is something I might want to do?

[BigDiesel]

I very confused still.... maybe this link will clear some of the fog....


http://www.thetruckersreport.com/tru...questions.html

I wonder what you are confused about? The topic maybe because you can't stay with it...You still confused about what radius means? Are you confused that my father just became a new O/O with his own authority and I am trying to find out more about it to see if it is something I might want to do?

Noooooooooooooooooo...... I think you are confusing yourself with your own tall tales / fantasies....