I am trying to start a new kind of dispatching service and would really like your thoughts.

Discussion in 'Freight Broker Forum' started by Fleet_Manager, Jul 15, 2020.

  1. Fleet_Manager

    Fleet_Manager Bobtail Member

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    I have been working in logistics for awhile now and I have seen both sides of the industry. I started in brokerage and I currently am working for a company taking care of 20 self dispatch drivers on a daily basis. I have noticed that both companies I have been a part of, treat their employees (drivers included) like they are disposable instead of the main source of their profits and their most valuable resource. I'm really getting sick of listening to my boss talk about how I need to tell my drivers this or that when ALL my guys know what they are doing and are running exactly how they want to.I was recently offered a 1099 job where they require me to recruit my own drivers but I have no experience in recruiting. They have assured me, once I get drivers on board, they won't have a say in how they run or anything other than safety. I came here looking for any helpful opinions on what the best way to go about recruiting drivers would be. The drivers I am currently responsible for are self dispatch, but I handle all of the day to day issues that come up. I've noticed that these drivers are more satisfied because they are in charge of where they go and when, but they know that I am available if they need help. Can anyone give me some advice on the way to go about getting my ideas out there? I think this is such a good opportunity and am really excited to get away from these toxic-type companies but I am really lost on where to start right now. Any suggestions are appreciated.
     
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  3. Midwest Trucker

    Midwest Trucker Road Train Member

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    Can you give examples of what your boss says? The “this or that” part of your post?

    So, it’s an all owner op company and the owner ops book their own loads or what?

    The position your being offered being a 1099 position. It’s sounds like your leaving one bad situation for another one. You must live in Chicago?
     
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  4. GoneButNotForgotten

    GoneButNotForgotten Medium Load Member

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    How does the present company that you are working for recruit drivers?
     
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  5. Fleet_Manager

    Fleet_Manager Bobtail Member

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    The company I work for is about 2 years old. They recently started an asset side where the owner ops book their own loads and her paid a higher percentage of their gross revenue. The drivers book the loads themselves through various load boards and I enter them into our system and send them confirmations. I update the brokers when needed and help to deal with the many issues that may come up. Compared to how it was before we started this new "plan" my drivers are much happier with the situation because they make a higher than average percentage and are pretty much left alone to run how they want and when they want. Now that everything is running smoothly my boss has started calling drivers and telling them that they are taking bad loads, that they can get better paying loads (usually to somewhere that they don't want to go) and he has even gone so far as to tell a driver to give a load back without having another load to offer him. I think they are being greedy and trying to micromanage and some of my drivers are already tired of it.

    The 1099 job would be a little bit more money in the long run, with more risk for me, but it is pretty much doing what I am doing now without interference and under a more established company. Pretty well known so I don't want to mention the name. I'm just hoping that I can be successful and grow into a newer kind of situation where people are treated better. It could just be hopes and dreams, but you never know.
     
  6. Fleet_Manager

    Fleet_Manager Bobtail Member

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    We have an actual recruiter who brings on new drivers for us.
     
  7. Midwest Trucker

    Midwest Trucker Road Train Member

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    He probably now realizes that he’s paying too high a percentage and not making any money. Your seeing it as greedy and he’s seeing it as dead weight. It’s his own fault he chose to grow too quickly with an unrealistic percentage and terms though.

    The drivers can get by running crap loads and crap lanes because they are either stupid or since they are getting a high percentage they can get by. For him, it’s not generating enough revenue for all the overhead and risk he’s taking. But, the model he now has setup he has to have the volume in order to make it work. Now he’s in a catch 22 of having to get in peoples ##### but not push too hard that he loses people.
     
  8. Fleet_Manager

    Fleet_Manager Bobtail Member

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    My guys do an average of $40,000+ a week in gross profit, but maybe that's true. The drivers who work for it net $2k+ weekly settlements on a regular basis. The ones who are more relaxed or not as experienced still net $1k+ so I don't think they are taking crappy loads at crappy rates, but taking what works best for them and yes they can always do better. I'm just not interested in bullying them into it. I have noticed a lot of extra spending on behalf of the company lately, either way I don't think that my current employer is going to last much longer.. their aggressive micromanagement style is starting to push people away very quickly, which is one of the reasons that I am considering this new option.
     
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  9. Midwest Trucker

    Midwest Trucker Road Train Member

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    How much is the gross revenue for 20 trucks? You should be at a minimum of 100k per week for those 20 trucks. Frankly, 120k would be more of a success story.

    It won’t be popular on this forum but sometimes owner ops don’t know what’s best for them or how to make the most. If they would be more open to having loads, regions, lanes booked for them, everyone would make more money.

    My guys could take those 20 trucks and do 120k per week or higher but we would force dispatch and take probably 20% which is probably 10% more then your owner is taking. However, it’s no walk in the park and even at 20% company take, the owner ops would probably make more under a structured environment.
     
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  10. Doealex

    Doealex Medium Load Member

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    If I wanted to make more money I would be a company driver. A lot of owners are owners because they don’t want to work “under structured environment”.
     
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  11. MTN Boomer

    MTN Boomer Medium Load Member

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    Not rare to contract for mid 80% on broker loads. Agent loads are usually 75 %. They pay better than broker loads & are less trouble. When its Winter , sometimes those loads to Florida or Texas look good.
     
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