Cheap Freight Doesn't Exist

Discussion in 'Ask An Owner Operator' started by BigBadBill, Apr 17, 2014.

  1. GITRDUN45

    GITRDUN45 Heavy Load Member

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    I definitely don't have that attitude. Tho I'd love to stay on 10 Florida to Cali I know that's unrealistic. I'll go where the freight/money takes me. But sure have to be ALOT to go to NE. Lol I prefer to have to much later delivery time and show up day early. I'll be hauling reefer.
     
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  3. BigBadBill

    BigBadBill Bullishly Optimistic

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    Another great member on here to model is RedForman. He doesn't go into the details on lanes, loads and rates the way Rollin does but you will notice that he doesn't complain about rates. He will share mistakes and what he has learned. Clear up areas that people have misunderstandings on some items but he just has a basic "It is business, I have a truck, this is my rate and what I expect" attitude.
     
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  4. 281ric

    281ric Road Train Member

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    I agree about Redforeman I wish he would contribute more but know hes prob a busy guy.
    Ill say it a million times, a lot of good people on here.
     
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  5. x#1

    x#1 Road Train Member

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    so what is the difference between the cheap rates that coincide with the cheap service provided? or the cheap service provided that coincides with the cheap rates? customers pay for the service they get.period.(I didn't get political but it crossed my mind!)

    Stellar service/stellar rates are not synonymous at all times,if at all, due to the market created by the elogging,62 mph running,rate cutting megas that do so in order to move a truck.or thousand.Those stellar rates drop over time due to the competition for that load and the necessity to move that 62 mph truck that is but one of the mega fleets thousands.they must make a profit i suppose but the customer suffers thus the rate.endless cycle of of dropping rates as there is no reason to pay more while getting less. why would they pay more if they do not have to?

    specialized transportation,end dumps for example,tend to have rates that are stable over longer periods of time.Staying with my example,i have not encountered but a handful of outfits pulling end dumps that run elogs and governed trucks.i am sure they exist however. coincidence or by design to pull higher paying product? performance generates revenue and long term relationships with shippers/consignees.

    I pay more for 100% gasoline as opposed to buying ethanol laced junk because i want what it provides for my vehicles.same analogy to me. cheap rates do exist,unfortunately so.

    just my opinion-
     
    Last edited: Apr 17, 2014
  6. GITRDUN45

    GITRDUN45 Heavy Load Member

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    Please explain what is stellar service? Mega carriers have Qualcomm so shippers and brokers can watch every step of the transit. And if their running behind they can repower the loads to deliver on time? So how some of you keep saying stellar service? Don't get me wrong I'm in NO way for Mega Carriers. I'm investing 250k in my operation . Just wondering what makes some use that term when negotiating the rate. Correct me if I'm wrong but isn't it more like empty truck at right place at right time that gives us those rates?
     
  7. BigBadBill

    BigBadBill Bullishly Optimistic

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    The question is "What is your value proposition?"

    On-time service is not really part of most of the Mega's value proposition. Right now it is about capacity. They have it and everybody wants it.

    What is considered "Stellar Service" to one of you customers may be a PITA to another. Example: We had a customer call us the Email company because Rolling and another driver sent a email on arrival, loaded, in transit, arrival and once MT with copy of the signed BOL. They absolutely loved it and paid rates we just didn't see at the time.

    But then another customer that was also in expedite business hated that. They wanted a phone call and send the BOL with your invoice. One driver hated it because they would sit on hold for ever.

    This difference (and understanding your customers business issues can help you not be a PITA) was that the second customer got 1,000 emails a day that they had to sort. And at nights they had 2 people working with 400 loads running and often the 2nd person would have to go to the dock to unload a truck.

    What we learned was they really wanted us to update them electronically (and at the time that meant I had to get up every couple hours to update) so that they didn't have to take the phone call.

    The carrier that could update electronically would get the load over a cheaper carrier.

    Long explaination to say "it depends".
     
  8. GITRDUN45

    GITRDUN45 Heavy Load Member

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    I'm following you. Loving this thread/conversation.
     
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  9. FLATBED

    FLATBED Road Train Member

    Had an episode this morning while I was away , 1 of our office people accepted a RUSH LOAD today delivery with out checking to see if it could be covered then realized it could not be. My youngest daughter stopped in the office to photo copy some stuff and this guy is bouncing off the walls in a panic , she asked why?

    He explained the situation and she tells him NO PROBLEM its covered , he asks how no drivers and no trucks available. She headed home changed came back fired up our old 1985 R MODEL MACK yard tractor hooked up to an older 48 foot dry van ( pretripped unit & updated log book ) headed over picked up 25 skids and headed out the 50 miles to deliver for a nice round $250.00. While there got 10 skid return load to where she picked up that popped up while enroute for an additional $250.00

    Saved a hassle and kept a long time customer :) and he pays for good service.
     
    Last edited: Apr 17, 2014
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  10. spyder7723

    spyder7723 Road Train Member

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    The megas have pretty high service failure rates. Think I read 8 percent is industry standard. That's what? nearly one in twelve loads are late. That's horrible service in my opinion. But that's great service compared to the service record of a lot of independents and small fleets. Gitrdun, about six months ago or so you pm'd me about trucking in Florida. Now that done time has passed do you understand why I suggested you lease to a good carrier before trying to go full independent? It takes experience to learn freight rates and lanes. It's a constantly fluctuating market and the only way to learn it is to do it. Being leased to a good carrier can help make the learning curve much easier.
     
  11. 281ric

    281ric Road Train Member

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    how bout checking in , how bout answering the phone , email or text when they try to contact you.
    when I dispatched I learned one thing , out of a fleet of 100 trucks, youd be lucky if 25% of these guys were well rounded profesionals. That being said , you can imagine what percantege of clowns the megas have. Sure they have good guys but the more trucks you run the higher the percentage of clowns you have.

    You know out of a fleet of over 100 trucks, there were customers that requested certain drivers by name and truck #.... You know why??? These guys were professionals and shined above the rest.

    Most shippers will cry and whine about the Megas and the service they provide.
     
    Last edited: Apr 17, 2014
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