With all that is effecting O/O's today everyone is in search of an answer to the problems being faced. I have been involved with many discussions, have read every idea good and bad. Some of them have been my own suggestions and I have accepted the reasons why my idea would not work.
I refuse to give up trying to come up with an idea that will help to resolve the problems all O/O's face. Every driver has stated that thier costs have increased but their rates have not.
Here is my latest attempt to help resolve the issue's at hand.
Government Mandates
1] Stop CPM. Percentage pay only!
No longer would any driver have to barter with CPM if all pay were arranged in % of load pay rather than CPM.
Barter for a percentage if you will, but at least you will know that the percentage you get is the percentage you agreed to. Not an under-inflated price the broker has told you the load pays.
This would require full disclosure of shippers payment for load on all BOL's. Not only would this eliminate the un-savory practices by brokers. It would insure that every driver was not being bottom dollared into bankruptcy.
2] Full disclsure of shippers payment of FSC
Again this would be required on each BOL and again it would insure the O/O was recieving what is rightfully theirs.
I do not want Uncle Sam involved in my life anymore than he must be. However these are 2 ways in which the government could mandate practices with minimal intrusion into our lives.
As before I welcome challenges to my ideas. That is all this is, one more idea in an attempt to reconcile the problems faced by O/O's today.
Stop CPM and Un-Disclosed FSC
Discussion in 'Ask An Owner Operator' started by 7mouths2feed, Mar 16, 2008.
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I think full disclosure is a great idea. It is mandated in many other areas, why not transportation? Even your cell phone bill has all charges broken down and identified.
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I still have my head.
Usually there would have been a rash of people tearing an idea to shreds by now.
Did I hit on something here with this idea?
If you think so then copy/paste it to OOIDA, ATA, Congressmen, Senators.......... -
In reality why change the system? I read charge by the hour and now percentage. Hour would send everything higher prices so we end up where we are at now, Percentages be easier for all to get shafted.
Just my opinion.. -
Number 1. NO
Here is why, how you are paid should be between you and the company you are leased to. Or the shipper/broker if you are independent.
We need less gooberment intrusion in our lives, not more. Thats why I'm against this one. JUST SAY NO TO CHEAP FREIGHT.
As for #2, I agree. There is no reason not to have that info. On gooberment BOLs there is that info. The load that Bronc just picked up with the Humvees, there is a line right there that states what his broker was paid, and the FSC.
Just like with produce and other goods that have country of origin and contents.
Now I'm SURE the broker's lobby would lobby very hard against congress passing a law stating the shipper's price must be stated. We all know that that would be the absolute end of the brokers making up to 50% profit off of each load they move. Don't think for a minute that they wont fight that regulation tooth and nail. -
Finally somebody puts forth a reasonable set of solutions that are practical and feasible. It is not a perfect or complete fix but we need to start somewhere and this is a good start. If a broker lies about a freight bill that is fraud and should would be prosecutable. If the members of this site cannot agree on something this small it is truly over the th O/O due a permanent lack of vision and ability to even basically agreeable. Let's vote on this one. I vote YES!
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Quote= Brickman
Number 1. NO
Here is why, how you are paid should be between you and the company you are leased to. Or the shipper/broker if you are independent.
We need less gooberment intrusion in our lives, not more. Thats why I'm against this one. JUST SAY NO TO CHEAP FREIGHT.
Unfortunately the problem is that people don't say no to cheap frieght.
By having only % pay and fully disclosed payment for that shipment wouldn't it resolve the issue of unsavory practices by less than honest companies and brokers. If the shipping charges are fully disclosed you cut out the BS. There would still be allowance for haggling since my cost and yours are completely different. My BEP is $1.17pm yours may be $1.23.. I can haul the load for 76% you need 80%. Either way we both would know without a doubt that we recieved exactly what was agreed to and niether of us could be low-balled by being told.....well the load only pays $XXX so you'll have to do it for $xx cpm.
If not a percentage then at least full disclosure of shipping charges and FSC on all BOL's.
I have a jet-ski repair business. I tell my customers what the part cost me and what I charge them. Theres no arguement because they know that I am in business to make money not break even.
My honesty with this also brings them back because they know that I am not exploding my profit margin.
I honestly think this would work. so please lets keep chewing at this idea. -
This is by far the best idea ive seen...im sure many small business and O/O would support this idea 110% .....we need to put small details together and push it through OOIDA, media, congress whatever it takes to get this done as soon as possible! Like Brickman said we don't need % pay if we have full disclosure on BOL then eventually all the cheap freight wouldnt get moved and it would level itself out. And if you still moving cheap freight then maybe its time for you to change your shipper.
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Personally I think your number 2 plan would be all we need. Disclosure of the price would put a stop to the brokers taking up to 50% of the gross. Without the need for a gooberment law making #1 another regulation on an already over regulated business. -
I've had the CPM vs % discussion with others, and no one on % seems to be doing any better than me on CPM. My fuel surcharge last week was .45 on loaded miles, and I ecpect it to increase to .47 this week. I run my truck slow ( 60mph ) and avg. 6.25mpg. My company pass 100% of their volume discounts (.02- .45 pg) onto the O/Os. These things all affect my bottom line, positively.
I agree with Brickman on less goberment.
I do agree with you second option full disclosure on BOL.
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