[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]

Originally Posted by 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.

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. :lol:

[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]

Originally Posted by 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. :lol:

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]

Originally Posted by 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.

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.

Originally Posted by SteveBooth

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.

Originally Posted by LOAD IT

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.