Hey guys, I was hoping to get a little info on some processes here. Let me give you a quick run down on what my situation is.
My dad bought a truck, got his authority, and started his own trucking business. He is the only driver (though he has a friend that may start driving with him in a few weeks). Right now he is getting loads from a guy acting as a broker's agent, this guy seems clueless and does not have my dad's best interest at heart (sent him to Albuquerque NM with the wrong address and took almost 2 days to find the right place) My dad has asked me to get loads for him, which i am TOTALLY on board for. Here is what I have so far.
I have a computer (obviously)
I am very computer/internet/tech savvy
I have a printer/scanner/copier/fax
I have highspeed internet
I have access to 4 loadboards.
what else do I need? From everything I have read, this is all I need to start getting loads for him. However, before I call one of these brokers and setup the load for him, is there anything i need to know? What is the process? How will my dad get paid for this load? I dont want to call the broker and sound like a total schmuck because I dont know, or cant provide them with simple information.
I know that their credit score and worthiness is important, and those loadboards do a good job of keeping that info accurate. Could someone just walk me through the process after I find a load for him? From contacting to getting paid. I would very much appreciate any advice and help!!! Thanks guys
Mike
Help for a Brand New O/O!!
Discussion in 'Ask An Owner Operator' started by Msticlaru, Feb 22, 2009.
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Since your father has hi own authority Your best bet would be to contact potential customers direct and lose the load boards all together,..Or only use the load boards on a limited basis,...
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How would I go about doing that? Is there a place I can go to find customers? Or by customers are we refereeing to say.. homedepot, and calling their corporate office and asking for loads.
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Helping your dad get loads from loadboards shouldn't take more than 15 or 20 minutes of your time. The broker has already gotten the load, there really isn't supposed to be another person between them and the driver.
What Walleye is describing is a FULL TIME job being a broker basically yourself. You're talking about 1000's of calls before getting a bite. Then you have to go down there and negotiate, draw up plans and bids. I've never done it but it sounds like a nightmare. -
As far as contacting customers directly... I have no problem doing that. I am a store manager for a big box retailer. Sales is my life. I really do not want to see my dad fail, as this is a last ditch effort for him to make money. (long story, but involves being laid off, failed real estate investments due to economy, and a house that is now worth 3/4 of what it was 2 years ago)
I know I have what it takes to make this happen for him, but I just don't have enough information yet to really make a difference. I am beginning to realize that load boards alone are not going to pay his bills. He just started driving last week after spending about 3 months getting his truck, his authority, and all the permits required to run OTR. Now its all about making money. He is averaging about a buck a mile right now, and I need to get him up to 2 bucks or more.
Is there any information out there about searching for customers? Do I just look in the phone book and start calling businesses? Is there anyone out there who has actually done this? -
I'll tell you what you can do for a quicker fix anyway. The secret is that the brokers don't post the best loads on the boards.
Start relationships as they come up by calling the brokers for the loads you are about to accept, and try to negotiate a little better rate. It's done all the time. Afterwards, try to build a bank of phone relationships and try to start getting your loads directly from the brokers before taking them from the board.
Sometimes you can get lucky and find a broker or two that will keep you busy all the time direct. This is a relationship business just like any other.
Last, if you want to get crafty, you can create your own company that is legally distinct from his. This will allow you to backtrack and call shippers direct that he is prohibited from doing by taking the loads. If you're not looking to make a lot you can beat the price by a percentage of the brokers take. Of course at this point you're going to hell but your dad should be ok lol.The Challenger Thanks this. -
haha nice
I was actually thinking about getting my own brokers authority. But from everything I have read, I would have to float his salary myself until the shipper pays.
I would like to talk more about that later. Right now I think I will just take your advice on calling the brokers early. On that same note, do you know what the broker will need from me before they allow him to take the load? And also, how long does it usually take them to pay out? I am sure I could just ask them when i call about the load, but I would rather not shake their confidence in me with my ignorance
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just wanted to add, that for a while, I don't plan on taking an percentage of earnings for myself as of yet. I am more focused on getting him up and running and turning a profit than making a buck myself -
It varies, so if you know what you're doing, you WILL ask.
This is where factoring companies come in. They of course get a percentage too, but they essentially front you the cash and collect from the shipper direct. They "buy" the invoice.
In this relationship, you would broker the loads, but the factoring would be set up under your dad's business. Then that factoring company will pay him and ride you until the shipper pays to pass on their cut. If the shipper never pays and you can't cover it, the factoring company files a claim against your bond. -
ahh okay, that makes sense. and that would be how it goes if i get my own broker authority.
as I am now, I have nothing legal. I am just my dads son, and i have a computer with internet access, and the login info to 4 loadboards. Do i need anything else, legally, to call the contact numbers on these loads? IS it as simple as "hi, I would like to take your load from A to B you have listed on the loadboard" fax some info back and forth, and hes good to go pick it up right? -
Right now you would be operating under your your dad's operating authority, so you don't need any specific brokerage licensing or bonds. No bond is needed if the driver is assuming the risk for payment directly. That's only when two external parties are relying on you for insurance reasons.
Shippers he's carried for before would be an easy script. Hey this is such and such, we've delivered freight for you before and we're in the area, was wondering if you had any undeclared loads you'd like to book direct.
Dry calls suck and take a bit more creativity. I would probably try that previous script anyway lol. Right now you're not a fleet, you can't offer to handle all thier needs, you can't offer repowers if the truck breaks down, you have no real guarantees. This is why brokers are needed and necessary because they deal with hundreds of trucks to accommodate everyone and in any region. I can't imagine how long that takes to build up. Economies of scale you know.Msticlaru Thanks this.
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