A Review of Farm2Fleet from the Broker's Standpoint

Discussion in 'Freight Broker Forum' started by LSAgentOZR, Jan 8, 2013.

  1. BigBadBill

    BigBadBill Bullishly Optimistic

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    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).
     
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  3. rollin coal

    rollin coal Road Train Member

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    Which is part of the value that comes to my table. Almost every week it seems that sort of opportunity gets offered up to the fleet. A year ago it was just us out there figuring out wherever a localized hotspot with tight capacity was, taking advantage, filling a need. That of course is still an option but coupled with this... It's more options... it sure is a lot easier to have them coming to you than it is finding them on your own.
     
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  4. trees

    trees Road Train Member

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    89 to 92 is the range, those numbers are decent for the type operation, (self dispatch), that you've described...


    I completely understand and agree. One of the things that I like about where I'm at currently is the security, POD's in on Mon, paid on Thursday. No worries on my part if the broker fails to pay, and this is what I consider "bringing something to the table"...I'll give up a slice of pie to ensure that I'm holding most of the pie at week's end

    That's where I'll have to disagree. If I'm carrying all the costs, and doing all the work, 80% is a no go.... It's not that much of a stretch to get authority and get 100% of the gross.... So, the security of having someone else guaranteeing payment, and paying within days is a big plus, and your deal is solid in this respect and getting in early was instrumental, but the current # 80% is just to lean from my perspective...and that's opinion, neither here nor there in the business world...

    Payment within the week, at 89%, and providing customer opportunities for the expedited...yeah, I agree, it's a nice deal


    I'm not one of those, and hatred isn't something I waste my resources on. I don't hate anyone in business, because I'm not compelled to deal with any of them. I've learned who's worth calling, what's worth hauling, and who and what isn't. I don't hate those who I've learned not to bother with, I just don't bother with them.

    Truth be told, I don't encourage anyone to become an O/O. Business is a brutal place, and being an O/O is business, business can be really ugly and there's not many that are really cut out for it.

    I understand. This is a service industry, we sell service. If you're not able to provide the service you won't do well...the key is to provide the service that was promised...

    I used to think the mega's hauled for cents on the dollar, it's the rumor that circulates around the coffee counters at the truckstops...

    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...


    I've hauled it too. The outfit I'm currently with is connected.


    The deal you have is solid.

    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
     
  5. trees

    trees Road Train Member

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    Can't really say that they're bringing something to the table then, unless it's an empty plate....

    At the end of the day it doesn't really matter to me, that being the size of the carrier, as I can only haul one load out of the many....which is why the big carriers don't pay percentage. They're not in business to make me money, and I can't provide much, in terms of capacity, to get them really interested in paying me...lol...

    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?
     
  6. rollin coal

    rollin coal Road Train Member

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    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.
     
  7. trees

    trees Road Train Member

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    Understood, I was more or less thinking out loud when I posted on the 72%. I have always considered F2F a possibility, (based upon the %'s), and was pretty surprised by the 72%. My rates average above $2.50, how much above I like to keep to myself, and I was thinking to myself what my end would be if I was at that percentage, (and what the other end of things would like). I could never do 72% on rates that I was pulling/negotiating that were fantastic and that had miles on them...I keep pretty tight lipped on the stuff that I do these days, not about to educate the masses on where the money's at...lol....
     
  8. russtrucker

    russtrucker Road Train Member

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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.
     
  9. rollin coal

    rollin coal Road Train Member

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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.
     
  10. BigBadBill

    BigBadBill Bullishly Optimistic

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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.
     
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  11. Rocky64

    Rocky64 Medium Load Member

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