A non-event ???

Within your post lies YOUR problem. Modern day billing has been reduced to a 14 day cycle or less. You are dealing with companies that still try to reduce cost by holding your money and earning interest on it for a brief period.

Change your billing, change your customers. "The customer is always right" myth, is a total sell out.

You provide a service, you know what that service is worth. Charge for it, and get your money quicker.

This is a game of a timely supply chain. Oh sure, the customer can find someone else. But, will he be able to fill his contractual agreements with HIS customer. Which may include fines and fees more than double the price you quoted the first time, if the load is 1 hour late.

Even Wal-Mart has realized that simply taking a "good" check is NOT good enough to reduce cost and improve profits. They want those funds transfered electronically TODAY. Hence the upgrades within their system.

Believe me when I say I understand what you have to deal with. But, you MUST draw a line somewhere.

If you live with the fear of losing a single account, then something is very wrong with your business model or your customers.

A flexible business can sustain a loss with one customer for a brief period, while you try to bring them in line with the prevailing cost and economy.

A simple history lesson

In 1985 fuel was .69 a gallon and we got $1.25 a mile.

Fuel is now $4 a gallon and you paid $2.42 a mile

Simple math will show that you by contrast, that load should have paid about $6 a mile.

But cheaper is always better. So what, if a 100K drivers go out of business. When there is only one left, he WILL set the rate, and you WILL pay it. Or your load will sit...for months.

 

That isn't my PROBLEM as you say- that's my solution! We no longer carry for customers that do not pay us, or request us to run for an unreasonable rate. The customer is NOT always right, and I never said that.

Thanks for making my point- when the other carrier fails, they will be back, and contract you to carry it, at your rate- what is the issue with my view?

We do! Again- this was my point? Did you even read my post?!? Here is our example- We sustain about $2,000,000 on a rolling scale averaging 45-60 days. BUT the customers we carry for that make us carry it, are paying MORE than others do to offset the cost, and they know it. And none of them are broker loads. We don't fear losing one customer. We almost walked away from our LARGEST customer about 2 months ago for rate issues. We expected to get dumped. What happened? They sold their company trucks, and we now run ALL of their freight.

When I ask a truck "what do you want (not NEED- I ask WANT) I get this response- "Well, uh, I'd love $10 a mile, heh heh... But really- I'd like $2.00 a mile plus 20% fuel." So, I call my guy, "I can get it moved for xxxxx" and they say "ok, get it done."

So, don't give me a lesson when I leave it in the truck's hands to set their rate, and they get what they ask for.

We do haul $6.00/mile loads- Double drops. To California. If you think you're going to get $6.00/mile to run a flatbed to Chicago, you know less about this business than I thought- be realistic if you want an honest conversation.

This is the point- make YOUR rate, and service your customer. Some will stray, some will not. The ones that do, may be back due to service failures. Where am I wrong in any of this? And no, cheaper is not always better, and I won't run cheap. Why do you?

 

Joe,

Maybe I didn't make myself clear enough.

If YOU choose to carry a customer for 30-90 days. That's your problem. Not the driver offering to pull the load.

If he wants his money now. Why complain (see your own post) about having to carry the shipper for 90 days?

And, I do agree with you. If a driver offers to pull a load for a dollar a mile. That's his problem. Ron White says it best, you can't cure stupid.

And NO I don't believe you call a customer and tell them you can get it hauled for X amount of dollars. That's suicide for a business. Especially when you have to call them back next week. And tell them, the rate just tripled because you can't find someone willing to pull it that cheap, this week.

Any good business will work from a SET rate chart. Not from sticking their finger the air to check the direction of the wind that day.

 

I have some customers that work off set rate plus FSC, and some that do not do FSC. Those that don't, get phone calls- I don't really care if you believe me or not. I just did it today for a load out of Wausau, WI to Akron, OH. Here was my conversation:

"xxxxxxx, there are no trucks posted up there, I have found a local driver, but he wants $1,200 to move it, would you like me to set it up?"

It was sold, as well. For $1,300. $100 for me, $1,200 for the truck, and apparently, everyone is happy, they've been a customer who knows I tell the truth, gets their stuff moved, and has been that way for 9 years.

Suicide is quoting $1.00 / mile hauling steel and then watching fuel rise, rise, and rise some more, trucks being scarce, and having no recourse to renegotiate with your customer.

We mostly run on a CWT chart. We don't go OUT of our state for less than $2.00 / mile plus 30% fuel. Then we figure the turn as a whole with an expected return load. If it works, ok. If not, we sit.


You're right- it is our choice to carry a customer. But that's why so many trucks get nailed carrying the bag- because most brokers have no money, and when they have to pay a truck, they can't- and bail with the receivables. We pay in 30 days. That's it- if someone doesn't find it acceptable, they can move on and find another load. Some do, most don't. I've quick paid, but maybe 2 out of 100 loads. Every bill from a brokered truck we received in Feb is paid in March. That is not unreasonable- we get yelled at by our accountant for paying TOO FAST vs. the industry.

Guess we can't win though.

 

Joe,

You have some valid points. So I guess nobody really wins.

We'll just have to let the market play itself out. Because the government isn't going to offer us a bail out like they did the banks.

 

You're right- none of us win unfortunately. All we can do is what we can do. Hold fast, keep your position and don't change your level of service- except to provide even better service to further differentiate your business from the next guy. The government won't help us because they don't see enough monetary gain from helping us, and they know that one way or another- things will get done. If anything changes, it'll be a lame short term solution like this tax "rebate" coming. What a joke that is...

 

What? That $300.00 isn't going to stimulate your economy? Mine either, they don't want us to spend it on energy...what else ya gonna spend it on? That might pay my electric bill....

 

When 80%+ of the people that get them use them to pay existing debt (like me) it does nothing to stimulate the economy. What a farce this rebate thing is.