Anyone out there 100% independent and use a dispatch type service?

I don't think that most dispatchers do IFTA, licensing and other bookkeeping services. That is a separate service and most owners that I have known over the years prefer to to those services themselves or hire a professional bookkeeper or CPA to do the books and taxes.

 

Agree with GMAN, also, mapping the routes, only if you ask me, if I try telling a driver I dispatch which way to go, hes going to be the one telling me where to go lol.

 

The way Bill explained it to me I could put my truck sort of at a Mercer agent's disposal if I wanted to. The way it works is I would book a load from them, haul it, and before delivering it that same or other agents in the Mercer system would actively be trying to cover a new re-load with my truck - if the rate was agreeable.. Sounds like it's an ok deal but they're not a big time dry van company. I think I'd still rather try to figure out their freight on my own and network off that based on what you and others have posted although it might work for a guy looking for someone to help fill in gaps from time to time.

 

Mercer will post your truck in their system if you call them about a load or are under a load for one of their agents. You need to contact Mercer's brokerage department for them to post your truck if you tell them when and where your truck will be and the type of equipment. I believe they still have a way to pull your posting off of DAT. There are other brokerage's that have their own in-house loadboards where they can post your truck when you call for a load. They may also put you into their system if you post your equipment on one of the loadboards, such as DAT or Internet truckstop. Some may subscribe to a service that will notify the broker or agent when there are trucks in an area where they have available freight. You can post your truck on other internal loadboards, such as Landstar or CH Robinson. Some have the capability to post your truck for you.

 

the problem I always run into is that often I am loading or unloading between 7 and 11 am. this is really the same time window when I need to be booking loads. sometimes some really great loads pop up in the afternoon but even then by the time I get my computer and printer set up and fax back contract and everything I have to wait til the next day to pick up the load. It's well worth it for me to have someone booking loads while I'm doing my thing. Even when I have "time" to book the loads I often have maintenance on the truck or invoices to send... etc... The only thing in hindsight I would change is maybe to pay on a percentage over $1/mile rather than a straight percentage. I know my guy will always serve my interests and find the best load available for me. But just as a matter of principle it would be better for his percentage to come off of the net rather than the gross. A good incentive for him to find better loads and negotiate rates.

 

If you want to use a dispatcher and pay him on percentage, then you need to pay him on the gross amount of the load. I am assuming that you are running under your own authority. It isn't up to the dispatcher to control your costs. He has his own overhead to pay. Without the dispatcher you would not have the load, anyway. I would not dispatch for anyone on percertage unless it was on the gross of the load that I booked. If you don't want to be upfront and honest with the dispatcher then you need to find your own loads.

 

GMAN,

It has nothing to do with upfrontness or honesty. I honestly don't make money until the load pays over $1/mile. Why wouldn't a dispatcher type person be interested in getting paid 10% on pay over $1/mile vs. getting paid 5% on net ? In the end he makes more money as long as he keeps me over $2/mile, right ? It's incentive based.

 

The incentive is the better the rate the more both of you make. Your break-even point is not his problem. Before I signed any new owner up to dispatch, I preferred to establish a minimum haul rate. In any case, the dispatcher works on commission. Would you work for someone and knowing you would not be paid until you produce over a certain amount of product? I don't think so. Any dispatcher worth their salt would negotiate for better rates. I would not book anything for $1/mile. A dispatcher has no control over what it takes you to operate your business. If you don't want to pay the dispatcher, then you need to take the time to find your own loads. You are both in business. Would you cover his overhead until he got up to speed and found the rate you want? Unless you have dispatched trucks, you have no idea the time involved. You can spend 12-14 hours per day on the phone, sending faxes back and forth, reading over contracts, checking loadboards, checking on the truck and keeping all parties informed. I would never dispatch anyone who would not pay me for my efforts, all my efforts. It is up to the owner of the truck who decides at what rate he is willing to haul freight, not the dispatcher.

 

I don't think we're understanding each other here. I didn't say anything about not paying, what I described was paying a higher percentage on over $1/mile. last quarter I averaged $2.37/mile (mostly on loads I booked myself) If my friend had dispatched me on all those loads he would have made more money getting paid 10% on over $1/mile than 5% on gross. The difference is when he books a load for $1.58 or something he makes less, the loads he books over $2 he makes more. He's not "covering my overhead", he's making money on every load booked either way. It's pretty rare for me to have to haul anything under $1.90/mile, but when I do I don't think it's so bad for him to take a hit on it just like I do. Chances are the load before or after will make up for it.

 

I was once approached by an owner who wanted me to dispatch him. The problem was that he wanted to have a graduated commission schedule. I felt that it would be confusing and time consuming and decided to not do business with him. I prefer a flat commission structure. It is simple and there is no room for confusion. There is an incentive for anyone who works on percentage to get the best rate possible. Having a flat rate makes the relationship much cleaner and helps avoid any confusion. If you have a friend who is willing to work on a split commission structure and it works for both of you, fine. I think that there is potential for one or both to feel that the agreement is not fair. When you know what you are paying for a service it is much easier to plan and to see where you stand.