Maybe O/O could answer this question about competing with large trucking companies

Discussion in 'Ask An Owner Operator' started by OldHasBeen, May 18, 2014.

  1. OldHasBeen

    OldHasBeen Road Train Member

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    Nowadays with all the large trucking companies how does the OO, & small trucking companies compete with them?

    I feel sure when the large company buys 100 to 300 trucks are more at a time while getting a big discount which cuts cost quite a bit.

    I'm amazed at the size of some of the trucking companies.
     
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  3. stayinback

    stayinback Road Train Member

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    This is actually a Good question.........

    Believe it or not..Your "Good service" will outweigh any Mega-Fleet.........................................How you ask?

    Because 80% of the Drivers they put in that Chair has a Wind-up mechanism on them(Like your winding a clock), Team that up with Low knowledge of the Industry,very little Personality, It Makes you With 1 Truck look like a 'Superstar'

    Look, Megas Might Have Purchasing Power to buy trucks..Sales Power to Lock up and Secure Customers..But 1 thing they'll Never Have in Numbers..And that is a Safe,KNOWLEDGABLE,experienced Driver That Knows Business.And Gets the Job done right Every time.....

    and you Can Bet That Makes a Difference!
     
    Foxcover, gokiddogo, JPenn and 7 others Thank this.
  4. freightwipper

    freightwipper Road Train Member

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    the big company has big overhead costs..
    a single O/O doesn't need their own terminal, a recruiting team nor trucks that sit without drivers.
     
  5. OldHasBeen

    OldHasBeen Road Train Member

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    Yes, the OO can have a good record, I agree 100%, much better than the large trucking company, & even better than the smaller trucking companies. But even the smaller trucking companies gets drivers that are not to good & messes up things for them. I saw that happen several times back in my driving days with the outfit I drove for.

    I was talking to a driver of a large trucking company here in Arkansas not long back & he spoke of them losing several contracts because of drivers, yet they seem to still be going strong.
     
  6. OldHasBeen

    OldHasBeen Road Train Member

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    Somewhat true, not completely. The big trucking company can get fuel, tires, oil, parts, filters, along with many other things much cheaper than the OO or smaller trucking company, & that big shop saves lots of money.
     
  7. stayinback

    stayinback Road Train Member

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    Still.......

    You will never Get the sense of Pride and Integrity from a larger carrier that an owner-operator brings to the table.

    Im a 1 truck operation....I Speak to My Customers periodically in Person, They Feel So Much more Assured that their Products moved By Guys like Me will get to their Customers virtually on time and safe

    Really a No-Brainer......Im Guessing the Point your making is How can us 1 Truck guys Compete?


    Real Easy.........Securing Business And Providing unparalleled service is what its all about

    Megas Will Never Be able to Claim that Notion.


    YOU (The 1 truck Professional) Are in Higher Demand Than the Turnover tornado of Drivers that Megas provide.
     
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  8. cnsper

    cnsper Road Train Member

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    Megas deal mainly with other mega companies for freight volume. But, as you may or may not know, most of the companies in America are small businesses and these guys want the personal attention that the mega companies can not give them. If you are willing to do the little things that make it seem like you go the extra mile, then you will do well.

    Just like when I was installing phone systems, the sales people always went after the big fish because they got a bigger pay check. The problem with that is when you drop one small fish, you will not go hungry. But if you drop the big fish in the fire you lose it all. Kinda like saying not to put all your eggs in one basket.
     
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  9. daf105paccar

    daf105paccar Road Train Member

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    Don't misunderstand me,i hope you keep your clients for many years to come but..............
    do you really think you will keep their bussiness if a bigger outfit comes and quotes prices 15% below your price?
    I have found that in todays world service has taken a backseat compared to price.
     
  10. fireba11

    fireba11 Heavy Load Member

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    Big Businesses have only one thing in mind...The bottom line, who can haul the freight cheapest for me! That is what the mega carriers do as the little guys just can't compete here! Fortunately.....There are alot of smaller businesses that the big carriers don't have time for, 1 or 2 loads a week from them just isn't worth their time, that is where the small carriers/OO's can flourish!

    Big carriers also don't have the time or want to specialize either. They want all dry van, flatbed or Reefer freight that is vanilla in color. The smaller carriers can supply the specialized equipment that is needed to service a account. There is only 1 mega company that I know of that can handle just about anything that can be shipped and that is Landstar. Landstar can handle it because we have 8000 owner ops who find niches with differing equipment from heavy haul to expedite vans.
     
  11. gokiddogo

    gokiddogo Road Train Member

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    You need to remember that you aren't likely going to be able to compete with the big guy on price. Your service is what they will pay you more money for, even if the less expensive, huge carrier is available. There will always be someone out there who will underbid you. ALWAYS.

    You need to think about who your customer's customer is. Let's say they have a customer like Walmart for example. Walmart rates and decides who they will buy their product from based on a number of factors, but one of them is how often the delivery truck is on time for delivery, there is no damage to the product. They do this because they have how their warehouse works down to a science, and is super efficient (so they say) ... So the shipper you are hauling for, let's say he is selling $50M per year worth of goods to Walmart, he has a decision to make on if he is going to pay the large carrier, who can't give that personal touch, or you. It is as simple as sending an e-mail when you arrive, or a daily e-mail if it is a multiple day load as to the truck's progress, letting them know when the load is empty, and that there are no rejections, all of this in real time. THAT is what they are paying for. You can even take it one step further by e-mailing them copies of signed BOL's so they can get their billing process started on their end, then follow up with the invoice when you can. This is where you can command a higher rate and get regular business for it. The shipper could use the cut-rate carrier and hope for the best, but they may be gambling with that $50M/year worth of sales. At that point it is their choice, but believe it or not, many of them will cough up for top notch service.

    They basicly want you to take care of all the BS ... get it delivered without any headaches for me and I will pay you well so I can sleep easy at night ... type deal.
     
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