Quote:
Originally Posted by MichiganDriver
What the heck has gotten into you guys? Y'all are turning this into an interesting thread.
The other day while driving down the road this thread popped into my head and it occurred to me that if I had said "how much incentive" instead of "how much motive" the thread would have had a slightly different spin. It's funny how some words conjure up side-effect meanings. The word motive is usually used in conjunction with a crime. Incentive on the other hand is benign.
A side note - nothing is ever cut and dried. CH Robinson, who I've done a lot of loads for, has a customer that pays well but I have never done one of there loads. Contractually I don't think I'm forbidden from trying to steal the account, but ethics are messier. The only way I know about the existence of the account is through casual conversations with CHR employees. I think they would have no more to do with me if I managed to snag it.
Back to my extremely poorly worded first post though. I'm really wondering how much benefit is gained from the monumental effort of trying to sell directly to the shipper. (I HATE SALES!!! I'D RATHER DO DRYWALL FOR A LIVING!!!). But if my cut is let's say 30% less thanks to broker involvement, I could try to be an adult and do what I hate for the sake of the business.
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I have watched your posts for a while...and once I even suggested you contact shippers directly.
The only time I would think you could legitimately solicit work from a Shipper whom you either worked for thru a brokerage agency, or learned about during discussions with a broker's agent, would be after a brokerage agency has broken the contract that exists between you. Most brokerage agency's break their contracts with trucking companies fairly quickly. This is done when they fail to pay you promptly. "The check is in the mail" only maintains the contract if the post mark on the envelope is within the period contained in the regulations.
"Pay Terms" are huge in this industry. Many brokerages will attempt to get a carrier, especially a small carrier whom is new to the industry, to believe that 60 day pay terms are "Industry Standard". Very few Corporations have such "pay terms" in their contracts with brokers. Fewer still have such pay terms included in their contracts with their "Direct Bill" carriers.The following link is "the law" as regards freight charges, and is the single biggest contract violation in the industry. In the period when I was processing freight bills, more than a third of the brokerages we worked with violated that regulation, and no contract a broker has you sign supersedes that regulation.
Extension of credit to shippers. - Federal Motor Carrier Safety Administration
You have "limited" your ability to do business in a lot of ways MD.
1; You chose a small unit with very limited weight capabilities.
2; You are hesitant to talk directly with the "Shipper".
3; Your "operational area" is to large for the one piece of equipment you have.
As Chris pointed out, you are based in Michigan, with the third largest area in the country for expedited freight at your door. You should not have to leave your immediate vicinity to make a very comfortable living, even with your limited capabilities. From DAY ONE you should have been focusing on contacting the type of business that would best utilize your service. In my view those would be the smaller parts manufacturers whom produce parts for the larger corporations that manufacture in your area. Even two years ago those smaller facilities would have gladly contracted your services on "Day Rates" that would have allowed you to be comfortable (or at a minimum pay your bills).
MD...."Sales and Service" are the only way you can survive in this industry. You are working hard at providing the "service". Now you need to work harder at "Sales". The thing you have to do is search out the market in your area and find the small company that most fits your needs....and which most "needs" the services you have to offer.
my 2 cents