For the folks that have their own authority....
#11
Rookie
Join Date: Jul 2007
Posts: 47
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.
#12
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.
#13
Senior Board Member
Join Date: Oct 2005
Posts: 2,303
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.
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.
#15
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:
#16
Member
Join Date: Jul 2006
Posts: 51
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.
#17
Guest
Posts: n/a
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.
#18
Senior Board Member
Join Date: Sep 2006
Posts: 725
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:
#19
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.
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. |
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