What tales?

Here is my license and I've already posted a pic of my fathers truck minus numbers.

http://i49.photobucket.com/albums/f2...cdllicense.jpg
http://i49.photobucket.com/albums/f2.../dadstruck.jpg

A small number will use only one broker, especially when working a small region. The great majority use many brokers. If one broker can keep you running at a good rate, it's much simpler. However, most find it necessary to use multiple sources for freight to meet their needs.

He is busy using the person he uses right now. The problem is it is a double broker situation he is in. He pays the person he gets the loads from 5%. That is after the original broker terms.

How do these O/O deal with more than one broker if they are constantly calling them asking him to do a load when he is already booked?

He's in a great area for a 500 mile radius run for sure. I work off the load boards and deal with a different broker on almost every load. If you have The Internet Truckstop then buy the optional credit check which I have. Sometimes they will list the broker as a factoring company and that's a definite sign they are good to go.

If someone calls you that's not listing a load on the boards and you can't look them up tell them sure, I'll haul your load but you have to pay up front with Paypal. I've hauled a load for a local company who has a credit rating of F but they pay in cash up front and pay well.

Keep in mind that when a broker decides to go out of business they will take the whole group of you down in one swipe. I've already hauled loads for 3 brokers who had an A rating but went out of business with a bang owing more than $30,000 to different drivers. I got paid from those brokers but just happened to notice in the credit alerts that they went south.

Your father will do just fine in his 500 mile radius. He's in a great area and I'm sure will learn the ropes quick.

http://i255.photobucket.com/albums/h...oothnh/map.jpg

Thanks for your info. He is a quick learner and I'm not sure he could be in a better area for the distances he can run.

You said you haul for a local company. Have you tried calling local manufacturers to see if they need someone to haul their freight? There are a lot of local companies who manufacture concrete products and plastic pipe but we're not sure if you call direct or how to find out if and what they pay.

I've only hauled for 2 local companies but once I'm out, I'm out for 4 to 6 weeks and deal with lots of brokers. I've made a lot of contacts with shippers who tell me to call and go direct next time I need a load but the chances of me being in the area are slim so it doesn't work out that well.

Most shippers I've called do not want to deal with independent carriers. It's just too much trouble for them and much easier for them to pick up a phone, call a broker and say I need 10 trucks and that's it.

That makes sense.

If there is a plus to the 500 mile radius it's he doesn't have a good excuse to be home every weekend.

While BD was way off on the 500 mile radius, he is dead on about the factoring. What is the reason he is factoring? Is it because he doesn't have the operating capital to stay in business without it? You said he bought a used truck. What happens if that truck suddenly breaks down, and he has to shell out $10,000 to get it back running?

Shoestring budgets are a dangerous game, especially in trucking where the profit margins are so thin.

Like Steve, I do the same thing. Be happy your limit is N. Florida,.....once you get down where I am in St Pete,...it's slim pickins.
Factoring is good if you don't trust the broker, or shipper. I signed with one when I first went out. They said no minimum, but got weird when I only factored 2 in 6 months. Also make sure it's non-recourse,....or it will bite you in the butt eventually.
Find your operating rate and add what you want to get paid,...stick with that number and as you go you'll find out where not to take a load into.
Good luck,

There are a few reasons why he is using a company to factor. First is to get paid so he can pay the double broker he is giving 5% to. Second is because he went out a week with someone to learn how to drive initially and he and everyone he knows factors. Third is the guarantee.

Fourth is, and I do not know the true numbers this is just a guess and I may be way off base, I imagine brokers or companies can take a month or two to pay. Let's imagine my father runs 2500 miles a week. That is around 1550 gallons of diesel or around $7000 per month in fuel costs. He's then got his truck and trailer payment I'm guessing at least $1000. Insurance which is $700. Double broker and factoring fees $2500. Plus maintanance and any repairs plus taxes and anything else I don't know about. So that is an easy $20-30K for the first 60 days before he would get a check from a company or broker.
I figured the above with a rate of $2.50/mile, $4.50/gallon fuel, 5% factoring, 5% double broker fee.

If he had a $10,000 repair he would probably have to sell some of his toys. I think it has a limited warranty on some stuff. It has a little less than 500,000 miles.

He is doing non-recourse factoring.

He has already told me there are places where he'd rather not go. That is due to hills, toll roads, traffic, and of course low paying jobs.

DISCLAIMER
(Sorry if I don't know the exact numbers, but I don't keep his books. This is only basic info I have got from him during brief conversations about how his business is doing. Since I may be interested in getting into trucking I thought I'd ask questions and try to learn a bit before jumping in. Maybe what I learn here can help him and others as well.)