Need opinions on a formula for a company!

Hello TTR!

I am a long time reader, but this is the first time posting! I wasn't sure in which category to post this, so I figured where the experienced drivers come would be the best.
This may be a long read, but I will really appreciate everybody's thoughts, input, and understanding.

At 16 I was a drop out due to a lot of family problems. I worked regular jobs, but it wasn't enough money. A friend of the family who was an owner operator, gave me two choices.Go back to school, or really make some serious money. I obviously chose to make "serious money".

The plan was this:

Start a company, where drivers basically run the show. I'm fluent in a couple of languages, I knew everything about computers, and knew how to TALK to people. Plus I'm really skilled at math.

I was the dispatcher, the billing, the everything. A 16 year old kid with an open mind.There were 6 drivers. 5 Owner operators and 1 company driver that was driving a truck from one of the owner operators.I started off at $600.00/ week CASH. From 7 AM to 7 PM. (to catch 8 am on east coast, and 5 pm a west coast)

I did not understand why me. I realized every other company would give them the load for cheaper than what the broker really paid, or the company really didn't give two #####!Took me a week to get everything understood, and I started getting really really good loads. When I say good, I mean over $2.00 a mile..dry loads..in December-February time. I learned the market quick, how to get best loads, and everything. I was enjoying this. If a load would pay, lets say, $3,400.00 on like 1,200 miles I would give the driver everything, compared to $2,600, and keeping the $800.00 for the company + taking 10% of the $2,600.00. The drivers were all making great money, and I was always reachable for what ever. They would come home and give me cash money for being honest and hard working for them. Month of this work I was earning between $1500.00- $2000.00 a WEEK! .

I thought life couldn't get any better back then, and also one of them, the friend of the family (very good mechanic) wanted to buy me truck (of course, I was going to pay for it), just so I can make more money, and help the company grow.After about 3 months, the owner of the company, which was suppose to be a good guy (since they were all friends) came into the office one morning and simply SNAPPED on me. Why? Cause I was giving he owner operators exactly how much the load was instead of cutting them here and there, on top of the 10% that he charged them. I didn't like things he was saying, so I simply told him #### you, I'm going to get my H.S. diploma, and walked out. (He tried to be rational, apologize and talk, but I was done, with my mind made up). I got my H.S. diploma, plus the money I had saved was really more than I expected back then. No more say, but the company fell apart. I talked to the guy that got me the job, and we agreed this guy was a thief, but he told me at least I learned a trait.

I worked for American Red Cross, and got diplomas, and all that, and had a basic normal life until I got into debt, and basically lost everything a month after I turned 21. Homeless, unless I wanted to sleep on my parents couch..Only thing I could think of was a truck, a place to sleep, eat, clear my head from things that happened that led me to that point (that's a whole different story). I bummed at my parents place, got a few grants, and got my CDL. My friend, that's like a brother, had a 3 year old truck that he bought, and he dispatched. A 780 Volvo, 10 speed. I finally got to the place, and found out that the truck wasn't ready, since the previous driver ###### it up. I got placed into a BRAND NEW volvo, to sleep for a night or two (I rejected a hotel). One driver decided to quit while the company had this very high paying important load. I got a phone call to go pick it up with the BRAND NEW volvo. With a thick heavy nervous in my stomach I went. Next thing you know, I did 4,600 miles my first week! They paid me .40 cents a mile! Next thing you know, I drove, drove, illegally (paper logs), day and night, passed inspections, had my logbook down to my fuel stops, never used my debit card. Perfected shifting, everything. I would stay on the road for 3-4 months, then go home for a week. In a year I put about 190k Miles on the truck. Accident free, ticket free, no DOT violations or citations. I made a lot of money I thought. Been through every state, even Canada, and Alaska (that was one scary ###### ride and never again by the way lol!).

The way I did this was basically at 2 am I would go to sleep, wake up at 5 AM. My body got used to it, and I had 21 hours to drive, fuel etc. At shippers and receivers I took naps, or ate, or re did my log book (sometimes re wrote ten pages), and my truck was not governed. I got up to .43 cents a mile, and the day I quit, I was offered a brand new truck and trailer (reefer) for .46 cents a mile. I said no, then I got offered to buy a truck as an owner operator, and I would average 2.00/mile no matter what. But in all honesty, I was sick of it. I gained 20 pounds, lost touch with friends, and changed a lot mentally by driving that much. Took 3 months off, til a friend that had this dedicated run, Mon-Fri, and needed a driver that could do it ASAP. The run was about 3,500 miles. Weekends at home. He was paying me 1,600$ a week flat. I took a drug test, did the application,everything. Then the guy he was working for under his authority, told him he won't let me cause he "doesnt know me and cant trust me". My friend lost that dedicated lane. In a week I got a phone call, from his boss. ( he did research on me). He offered me a chicago to dallas,to laredo to houston (drop and hooks, no sleep.) Pick up at 4 am Monday, be in dallas at 11 pm Monday, be in Laredo at 7 am, be in houston at 4 PM Tuesday.. then it was sleep time til 11 PM tuesday.. then delivery 1 AM wednesday in New york, Pick up at 6 am Thursday in PA, delivery back in Chicago on friday morning. Then home for the weekend. I got paid $2,200 for that. Suddenly I got sick and tired off picking up trailers wit nails in them, not being able to sleep how I usually would (2 am til 5 am), so i said Im done. But I got into the free market, however this time I went in as an owner operator. I luckily had ONE break down. The break down was my airlines got ###### up as I was driving, and the sight wasn't pretty when my trailer started bouncing left and right (thank god no one was hurt, or no damages were made). After that I quit, but this guy found out that I dispatched before and offered me to dispatch. I took it. I met some great drivers, hard working honest guys who pushed it, and I also met some ###### up lying lazy ####### who would drive 500 miles, and the next day tell me they need a day off cause they drove "1000 miles over night". I never cared, wasn't my money being affected.

However I made some serious connections with brokers, that pay really really good money, have dedicated accounts,etc. I been talking with a friend, who is one of the best dispatchers in the area, from paying loads, to understanding drivers, and everything. We have been talking about starting our own company.

I understand how CR England, Swift, Werner are ran.
I understand how many little companies are ran.
I saw how companies like Multi group,amerifreight have grown so much.
I see the system, on lease/purchase to cutting miles, to charges of this and that.
I also see how ###### up some drivers are, from lying, to being lazy, and so on.
However, what I HATE is I also have saw, met and see good honest people on the road that work hard and get screwed over.

Now this is a DRAFT PLAN of what the idea and the system is behind a company me and my friend would like to open.
We have Fed Ex accounts, if we would like. We know the main guy, ( met him at a few concerts and had drinks and jokes and he always offers us top paying lanes)
We also have wal greens accounts ( power only, paying 3-4 bucks a mile, AVG of 3000 miles a week * power only means u only pay for ur truck and fuel, everything else for trailer is not ur buisness)
We also have brokers, such as C.H. Robinson where we pay them like 200-300 bucks a week personally, while they give us for example, $5,700.00 on $1,2000 miles due in TWO DAYS. ( and if the market is complete #### where nobody is paying ANYTHING, and it's hard to get a load, theyll get us even if its ####, but theyll get us out of there)

So this is the ultimate goal that we have made.

We have owner operators, and we have great company drivers that we do know.
But the ultimate goal, and the system we want to have is completely different than any other company.

You see, as a dispatcher now a days you'll pull in between 4-6 thousand dollars after busting your ### all day. (Trust me it's not easy being a broker, or a dispatcher, at least if you're a good,honest one)

A company driver such as myself, makes about 6-7 thousand a month, with 1 week off.
doing research I noticed most company drivers barely pull in 5 grand a month.
When I was an owner operator, after all my expenses I was left with 16,000 a month
doing research I noticed most can't even clear out 10,000 a month.

Research and witnessing, i found out most CEO's (the smaller- medium company guys) make about 200-300k a MONTH profit. (I'm talking 30-50 truck guys)

Now personally I HATE THE ROAD.. I HATE THE TRUCK STOP SHOWERS, I LOVE SHIFTING, I HATE DRIVING IN GENERAL ( only few times do I really enjoy it!)

My friend on the other hand hates DISPATCHING ! (at least for somebody else)
With the money we are making now, seems like great money, but I will admit, #### yeah we WANT MORE MONEY. However, it doesn't mean we have to be greedy and steal from others.

Even as a CEO to make 20-30 k a month in this industry compared to 200k----- millions a month for ME it's more than a decent life I can live, and also those working with the company will make as much as me!
How would this happen? This is the formula, and I am not afraid to share it because it takes having a heart, morals and principles to actually do it, which many people do not have.
First, start off easy, getting the guys I know, including myself for first month or two, to get the company rolling.
Then expanding. Problem is, there are 10000000000000000000000000000 (not really, but a lot) of drivers. BAD AND GOOD, sadly more BAD than GOOD.
I want the best dispatchers, and offer them the most money than any other company. However, they have to bring in good drivers with them, because out of that 10% for dispatch, 2% will go to dispatchers on top of their pay.
So if dispatcher is getting 6k a month, and he brings good owner operators, the more money he gets for THEM, he gets for me, and himself. so (talking out of this world for SIMPLE math):

10,000/week
10%= 1,000/week
2%= 200/week

So dispatchers makes 200 out of that 10 %..Now if he has good owner operators, and he gives them the TOP paying loads, and lets say he got 4..and their gross is ATLEAST, the MOST minimum 10,000/week..he makes 200 bucks times 4= 800 bucks extra on TOP of his salary. With hard work to get great loads, the driver will obviously want to stay more on the road cause of the money being made, it's a motivation I guess, and if he doesn't, well then that's a shame .( I'm not talking driving like a animal with no shower by the way!)

So now that we got the best dispatchers, you also have to remember they have accounts, and brokers cause they have been in this industry a LONG TIME. (even I have $1.90/mile MIN. loads out of Yakima,Washington YEAR ROUND)

AFTER, a year, the goal is basically to have every owner operator, making at least 15k a month profit.

Every company driver to make at least 6-7k a month, + the profit we make from them to pay off the truck, if they stick with it and TREAT with CARE, (once we pay the truck off, out of our pockets, the truck is theirs for FREE, + a year contract that they are our owner operator for 10%) Trust me, we will still make money for ourselves even after that. Plus motivating a driver to be safe, reliable, will keep him, and hopefully for the future, so its also an investment for us.

Now the crazy thing is this. For this time being, even taking few years to develop this into a big company, for me and my friend, we will make more than we make now, so we will be okay, we won't starve. Also with that type of a reputation, we are hoping to attract more and more and more drivers. Eventually to have at least 30-40% of drivers driving for us, where we can actually CONTROL the market, that would be the advantage to our company, meaning us, and all the employees, from drivers, to dispatchers, to billings, to H&R, to you name it, will make MORE money, and be more stress relieved.

No one should be disrespected in any way, or left hung, in a need of help for anything. There should be no complains cause this would be basically OURS. Any employee, that would have an concerns or feel some sort of way will be heard, and "justice" would basically be served. As a driver, I understand the road, ###### dispatchers, ###### up CEOs, etc. Also as a dispatcher I understand ###### up drivers.

Things that are very important:

24/7 Dispatch
No disrespectful behavior(from both sides)
GOOD SAFETY RECORD (DON'T BE LAZY TO TAKE PLACARDS OFF IF YOU HAD A HAZMAT LOAD, DON'T BE LAZY TO #### UP YOUR LOG BOOK, BECAUSE YOU DIDN'T TAKE 10 SECONDS TO TIME IN YOUR FUEL AND GOT CAUGHT WITH THE RECEIPT THAT ISN'T MATCHED WITH THE LOG BOOK, OR DRIVING WITH A HEAD LIGHT MISSING OUT, OR SOMETHING SO LITTLE AND PATHETIC THAT DOT LOVES TO CHARGE FOR!)
No REFUSING loads (unless it's a really good reason for it, a honest reason, cause obviously this would be the best load for the day we could get)<br>For owner operators= home time as much as you want, no force dispatch, as much work that you do, as much work will do, as much money you make, as much money we make, and any money is better than NO money.
What we would run- DRY, FLATBED, OVERSIZED, HAZMAT, REEFER (What any drivers is willing to offer, it is not a obligations, but how many drivers we hope to have, we could cover all, money just depends on what you have and what you are running.
Pay would be weekly.
We would include a lottery, where every driver can CHOOSE to participate and throw money in, for a brand new truck. Who ever gets it, has another truck, where he can sell it, or find a driver for it.
Every 2-3 months, top 10 grossing drivers would get free laptops,phones, or money of same value as a bonus.
Basically the atmosphere would be relaxed, good money, appreciation, respect, and also serious crunch time when needed.
Also we have connections with GROUPON( since my partner did banking with the guy in charge), so drivers would get great benefits for rental cars, hotels and so on, for their vacations or whatever needs they have!
FREE OIL CHANGES, GREASING, CHECK UPS (REMEMBER WE DON'T WANT TO MAKE A MILLION A MONTH BY SCREWING DRIVERS OVER, SO WE WOULD PAY TOP DOLLAR FOR A MECHANIC TO CHECK OUT TRUCKS AND MAINTAIN THEM, WHICH WOULD KEEP OUR DRIVERS AROUND!)
There is a lot more that we would add, the most companies DO NOT HAVE in their system.

Weed out the bad drivers, lazy drivers, lying drivers. Get all the good, honest, hard working drivers, and make sure they're well compensated, more than the average. (It will take time, but it is a GOAL)Biggest thing is, the OWNER OPERATORS, that is why I would want to convert company drivers into OP (they take care of the truck, cause it will be theirs, and they don't have to do the ###### up lease/purchase program, so I save money. Plus I rather have owner operators cause it's easy to know how each drives, and what to give them, compared to FORCING company drivers where it's a HIGH risk of crashes, and so on. It costs more money than simply take a % from guys that care about their profession and what it includes.

I didn't really choose this profession, just out of the paths in my life I went into it, and every time I tried to leave it I got grasped back in it. I want to make the best out of it, but I also want everyone else around me to do the same and be PROUD of what they do, and the company they work for, because it would be theirs as much as mines.

I posted this in this section, because most newbies, even some experienced guys have no clue about this industry, or companies, or anything really. I am hoping guys with experience can tell me any faults in this, any opinions, any thoughts. I am not recruiting anyone, or promoting anything, I am really asking for honest truth of what people would think of this formula, and also I've shared a bit of my experience so you can hopefully understand where I am going. This may sound CRAZY but the truth is, this isn't about one man getting wealthy, forget rich, over hard working souls. This is eventually making the same money as other companies, but with control of the market, not the drivers. This is about longetivity and reputation, and if it all FAILS, at anytime this formula can be switched to like other companies and screwing drivers over if wanted and making the money, but that's obviously not the goal!

Please, share your thoughts, feeling, opinions, ideas of what you as a driver, dispatcher, and so on would like to see in the company you are so things could get implemented into this formula, the blueprint, the module of this biz plan.

 

lot of BSing and dreaming going on in your post !

 

A lot of ideas going on, but not one mention about how are you going to compete for and retain shippers and accounts in a highly competitive market in a questionable economy with questionable outlook, and charge and collect "premium rates" in order to do all you mention in the post.

 

To flatbed, a lot of BS, I don't know how much you drive, or how much you drive for, but money is in this industry still, but it's always "BS" to guys and they go with companies most are not happy with.

to STEXAN, thanks for your reply as well. As I have mentioned we do have accounts offered, just waiting for winter time to be done, and start off with me, and guys we know. I can show you confirmations, I can show you my paycheck stubs. You can even look at it if it was photoshopped or not. Slowly were hoping to collect only GOOD HONEST DRIVERS and make sure they're paid, even teach them how to start their own things under OUR dispatch, and make a written promise to make sure they average what we would claim.

Every driver an talk to broker and ask how much load really pays, and also get the confirmation on the paper of what it really is, compared to what the company tells you the load pays. This is not something that can happen over night obviously. But within two years at most, it's the plan. Once having drivers, just taking dispatch percentage wit great reputation we expect to make money by the quanity of how many we have, specially since it's quality, compared to steal from low quanity and have medium quality. I can right now promise, any driver that's an owner operaor, if he does atleast 12k a month, he will make atleast 2 bucks a mile, after all expenses, and can have my number and meet up with me anytime. If it's a company driver I can give him 44 cents min , and all miles he wants aslong as he runs legal. None of that money will go to me, but as far as evidence and proof I will show it. However it needs to be a good driver. Not a lazy, drunken, ########### who cant drive more than 8 hours a day.

Like I said in my original post, this is a company to build all the good hard working drivers, eliminate all the #### ups, and let them stay with the bottom feeders, but as we grow, and our percentage of drivers increases, we would be a big company, and decide to take higher paying loads, cause guess what, out of 100 trucks we have 60 in a certain area, there fore, we could to demand the low. Right now there are so many drivers and trucks for bottom feeders, that they can call low prices, and others are stuck with it. If all the good people reunite eventually we can actually call shots and run it. It takes time, patience, but it can happen. Other companies would have to increase their rates, from brokers, to drivers, so either way, this industry would become more paying as a WHOLE, which still would make me happy. Otherwise like i said, to have a company a #### drivers over, by screwing them on miles, charging them for #### ups, not giving them their last paychecks, you name it, to make few extra bucks, I can do all day long. But this is a vision, a goal, and I really want it to work for everyone. Will it happen? It depends on all of us.

Im glad for inputs so far, but please don't call this BS, as I said. This is not to recruit, or share companies or anything of that nature. And if it was, trust me, my recruiting skills would be different an very picky.

 

In an industry where profits are measured in pennies per mile, good luck with that.

 

Personally, I don't have an hour to read your post...........

 

To flatbed, a lot of BS, I don't know how much you drive, or how much you drive for I drive for myself and own 25 trucks been in trucking all my life and thats why I call BS on some of your post. Like how you supposedly did kickbacks to someone at CH ROBINSON to get fast paying supposedly big $ loads.

Your going to recruit a lot of GOOD HONEST DRIVERS when you post "This is about longetivity and reputation, and if it all FAILS, at anytime this formula can be switched to like other companies and screwing drivers over if wanted and making the money,
"
Anyhow have fun I posted my opinion and wil not bother you and your DREAM any further.

 

LMAO Pennies for mile but showing he's driving a 170K Truck. LMAO .......

 

Can you tell me how you drive a 150+K truck and not be making money? I wanna learn.

 

I wish you LOT of luck really. Sure most companies start out this way but then the all mighty $ GREED takes over eventually.