I keep hearing over and over the mega carriers are hauling cheap freight. What are there secrets? They must be doing something right to stay in business, this long. Is it fuel discounts, lease purchase , tire discounts, or maybe its just good customer service. Is it more trucks you have the cheaper you can run? What are your thoughts...
mega Carrier's
Discussion in 'Ask An Owner Operator' started by rickybobby, Mar 27, 2012.
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If a huge company can make a profit of just 1 or 2 cents a mile, it adds up.
Smaller outfits don't have that option ........ -
I understand that, but how did they get big. They didnt start off with a lot of trucks.
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They are not as cheap as most believe. Do you really know what they charge for all lanes?
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The secret is that this is false. With limited exceptions contract freight is higher that spot market freight.
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They only take cheap freight to get you into a better freight area, thats about it.
BigBadBill Thanks this. -
I know that I keep asking about running flats in the NW and keep hearing that Swift will not run cheap freight and that is keeping us out of the NW due to others who are keeping the prices down. The big companies offer quick response and delivery. Stability and simplicity. Sorry but the small companies can't offer that.
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Just look at their tariffs for contract freight.
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The only advantage a mega-carrier has to offer is the ability to repower loads. Other than that they bring lots of baggage and redtape with lots of disgrunteld underpaid drivers working for peanuts who could give a rats rear end if the freight they're hauling is high dollar. They're not nimble enough and can't match the service of a small carrier.Motownfire Thanks this.
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Be careful with rash statements and gross generalizations like this. My company is small for a reason; flexibility and control allows me to better serve my primary customers' needs. Why run 200 trucks when I can run 50 and be just as profitable? Less headaches, overhead, and I would argue smaller outfits are more stable. It's all to common to hear of mega-fleets laying off hundreds, filing for Chapter 11, or being liquidated completely because of losing focus of what got them there in the first place. 56 years in business and after 3 generations we've never laid off a person, is that stable enough? Size doesn't lead to success if you can't deliver value to your customers. They pay you to get the job done, it doesn't matter if you have 50 trucks or 5,000. Sticking to a well designed business model rather than trying to be "everything to everyone" will serve you much better in the long run.
But then again, I'm thankful for mega-carriers who fail to deliver on their promises to customers, it makes my outfit look that much better in my customers' eyes.Motownfire Thanks this.
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