Long post.Thinking about hauling watermelons.

[henboy1]

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]

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]

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]

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.

[jonp]

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.....

[jonp]

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]

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]

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?

[chris1]

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]

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]

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]

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]

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]

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]

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]

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 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 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/red...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]

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]

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.

[jonp]

Are you ok dude? Is the other personality showing up today as well?

sure you don't have me mixed up with someone else?

[jonp]

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.