Most carriers that "bring something to the table" would never consider even paying percentage.
As far as what we are bringing to the table with this is the power of a large carrier behind us. I can pick-up the phone and get an appointment with companies that never talk to small carriers. Better yet, I have direct contact with all the largest 3PL's. When XPO/NLM was looking to lock in capacity after the storms they called me not some small carrier (like F2F).
A Review of Farm2Fleet from the Broker's Standpoint
Discussion in 'Freight Broker Forum' started by LSAgentOZR, Jan 8, 2013.
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Bigdubber Thanks this.
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They have rates in the high twos, and sometimes they're in the three's....depends on their customer and what's going in the box...and they'll pull a backhaul, as it's all about the bottom line with them...They're certainly not going to operate at a loss, and a group of executives that have the company operating on a razor thin margin will be out the door faster than can be believed...
My post had to do with the 72% #
Nobody likes getting trimmed, and business is about trimming somebody. Business is a constant calculation and evaluation. The people who make money are always looking to make more...
I make some fat money where I'm at now, but the powers that be have decided to trim some fat off of my end, has nothing to do with performance...and it's just a nibble, from there perspective....me? I don't like being nibbled at when I've done good things for someone...
So anyway, I was looking at the F2F website yesterday and had to ask myself, "why in the world would I give someone else 28% when I'm the one doing all the work and supplying the equipment?
It was nothing personal.
And I doubt that going from your current percentage to something lower would fly with you....
It doesn't fly with me, although those who've nibbled at me seem to think it's ok -
An O/O is a stopgap in the mega business model
The big carriers pay the O/O the minimum.
If the big carriers paid out the jackpot, you, or anyone else, would have never bothered with getting your authority....
You wouldn't have needed to.
Anyways, congrats on your success.
If I ever get through Chattanooga with some time I'll buy you lunch.
Deal? -
I don't mean it to sound like I don't ever recommend our company because it's bad. This company is great I put my all into helping with it. I don't do for the fact I know it will not be a good fit for most newbs and I hate to see people fail. As you know loadboards are not a cakewalk, not rocket science, but to be fair not a cakewalk... Someone who has experience operating under their own authority would find it a great fit of course of those who do that successfully they are not looking to lease on and who can blame them? Someone experienced in a system such as Landstar would also fit well but again the ones who are a success at that are not leaving either. That leaves taking chances on people who have zero experience negotiating and booking their own which can be hit or miss. Anyone wanting to take that risk knows if they think they can and don't need me to say yea or nay.
As far as 80% goes I could make it work but I wouldn't like to have to. Now the 72% for what it is head and shoulders superior to any flat mileage rate company and likely better than SNI Choice aside from the fact it's not self dispatch but not everyone likes self dispatching. For many it would be a step up if they gave up authority or self dispatch lease, for me it wouldn't. -
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And how much $$$ you made for the week? F2F sounds interesting, having thoughts of working there with my father on my t600.
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I've done zero this week that's on me though. Haven't posted the truck anywhere but still get at least half dozen or more calls every day looking to load it up not sure how serious anyone is on rates haven't even asked. Probably tomorrow I'll grab something if I can get a good one. Last week did $5,750.00 gross revenue (my take 89% of that number) on 2 different loads. One was 688 loaded miles the other 186 loaded, total miles on the week including deadhead were 1,988. Not representative of an ordinary week but my ordinary weeks are better than a lot. That's likely the best rates and week I've ever turned but when I get with it I do fairly well most weeks. One can't expect to come into this and get rates like that right off the bat or even 52 weeks a year but like I've said before when you get them here and there you can put a nice year together and not run yourself into the ground like guys turning 3,000 miles every week for half my going rates. Need to also point out 72% deal is not under F2F authority. That would be leased to Covenant.
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No single opportunity is for everyone. Someone that has the skills to be independent but doesn't want the risk or have the resources is a better fit for Farm2Fleet or a Landstar. But some just want to show up and run. And most options are mileage based on that side.
But a couple things that many don't look at when dealing with what we are setting up.
First, I likely have more money tied up in trailers per driver than most O/O's have in their tractor. We are running 3-to-1 ratio at this point in most of the country and down in Laredo it will be a little bit higher to start.
Next is the cost of dispatch. The higher paying freight typically isn't scheduled and/or requires regular communication. Forget about the 50+ to 1 driver/dispatcher ratio. We will be at no more than 10-to-1 ratio. And we have to be 24/7 and not the 24/7 that has someone sleeping and answering a cell phone. I am talking awake and alert even on Christmas morning. So that will take me to a 7-to-1 ratio. Now that alone is better than 5% of the gross to cover this overhead.
Then you need to remember the insurance. We are running a lot of high dollar freight. When you put a million dollars of iPads in the back you better believer that you have some insurance expense PLUS you have a whole different 24/7 department - Security.
And not last or even least, you have sales. We are not talking about accounts that you make a sale and talk to them every couple months. Most of our accounts require active management. For example, with UPS, the account manager will be visiting them monthly and many times during the year it is a couple times a month.
But, what I have created is not for everyone. I have created an opportunity that is geared towards the mileage based O/O that has zero interest in even thinking about what it takes book loads. And at rates that are significantly higher than any of my competition.
Now, what I have at F2F (and I believe what you have Trees) very few O/O's could succeed at. Look at LS. They have this model down and very few drivers are really pulling in the numbers. Not because they are a bad company or mislead anyone but because planning your truck is hard work and takes a certain skill set that most drivers don't have.Bigdubber Thanks this. -
Subscibed.
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