O/O need to be taught a lesson- food for thought

Once again, who says you're getting 100% of the rate under your authority??? Unless you are direct, that broker is taking at least 20% or a lot more if it's a lucrative load. How many times does that need to be said? My $7 a mile load this week would easily have sold for $3 a mile on Internet Truckstop. The problem with factors is that 5% you pay them is off the top . That can be 10%-100% of your profit margin. At 5% on 30 day terms, that's 60% APR!!!! You can cash advance a credit card for half that rate! Take some business classes snowy. They will more than pay for themselves.

 

Here's the way I did it. When I first started, I quick paid almost every load. Most brokers I dealt with were the 2%-3% range. A lot are 5%. After running and showing profit for about 6 months, I got a line of credit through my bank where my deposit accounts are, and my trailer loan. So, instead of doing quick pay which is 2-5% per load, I pay 4% APR. I have a $20k limit on the LOC, and front myself money from the loads I'm doing. Right now, I have just $10,075 outstanding on loads right now. But, I haven't driven much this month (personal reasons). Now, I do have some brokers in the 2% range that, depending on the load, I will do quick pay still. $20k LOC isn't a lot if you're running $6k or $7k revenue in a week. Though in waiting usually means with mail delay about 35 days, etc, to get your money.


Big thing is, save your money up. Also, there's a lot of brokers out there that pay quick in the 7-15 day range that's much more useful.

 

Thats exactly the reason I let my authority go in 09, and I haven't looked back with one regret. Brokers are a pain I can do without, but those clueless morons that haul for nothing are the biggest problem facing the independents not the brokers.

 

who said anything about 100%. ?????? or mentioned anything about direct from the shipper.

you haul your own freight, you factor the much lower rate.
you lease on and haul freight. you pay 25%.

doesn't matter where or how you got those loads. you still hauled the load, and you hauled it for a rate.

the difference IS, wether you factor. ON YOUR OWN. or are leased.

i run my own show, i factor for 2 - 5%. i'm leased on. that same load goes through the carrier. and they take TWENTY FIVE percent.

there is one carrier. that doesn't confine you to their load board only. you are allowed to pick loads from ITS.

 

Have you been drinking? Sure you can get a brokered load of Internet Truckstop. Let's just say the broker is getting 20%. Add in the factor, and we're even. Now, let's take those lucrative loads where the agents sell them to outside carriers for 50%. I'm way ahead. I too can book loads off of IT. I simply run it through an agent. I've never had a desire to do so after working IT,GL, and DAT for 6+ years. So, you lease to a carrier, AND you factor? SHADY SHADY SHADY.

 

you obviously don't get it.


agent offers a load. $1000. the load goes 250 miles. becuase i'm leased to a carrier. they get 25%. $125 for fsc. leaves $875. carrier gets $218.75. leaves $656 plus $125 for fsc. truck gets $781,25

i book my own load off ITS. $1000. i factor it our for 5%. that means the truck gets $950.

doesn't matter what the shipper paid to have that load shipped. which means it don't matter what the agent or broker is making off the load. because you'll never know. (maybe).

all that matters is the truck is taking the load for $1000.

you all say to never use factoring companies. who takes a MUCH smaller percentage of YOUR pie, then being leased on does.

i don't know what's so hard to understand about that. i also don't understand where you get the idea that i'm booking through the carrier AND factoring. since i'm leased on. logic would dictate that the carrier is paying me. BUT, if i'm on my own authority. THEN i'm factoring.

it's really not that hard of a concept to grasp. the carrier has loads with agents. but they also allow loads off the load board. and they take 25%.
just like the other o/o companies take 25%. with the exception that most carriers only allow off their own board ONLY. one carrier does NOT confine you to their own freight.

run your own authority and make 100 percent of what the load IS PAYING. NOT WHAT IT'S BEING SHIPPED FOR.

nothing was EVER said about 100% of what the load is SHIPPING for. ONLY what the load is HAULING for.

there's a difference. clear as night and day, when your not drinking.

it's not a difficult concept to grasp.

you need to get that idea of 100% of what the shipper is paying OUT OF YOUR HEAD.

 

Oh I get it. I've done it too. If you work for a crappy carrier that only books load board freight, then you are correct. I'd have to question your intelligence though. What the shipper pays will NEVER get out of my head. I haul direct for the shipper 80+% of the time. So, while you may book that $1,000 load off IT, I booked the same load direct for $1,500-27%. Sometimes I may book that same load for $2,500-27%.

If you have direct freight, go on your own. If you're going to work the boards, get on with a company that has real customers and you'll make more money.
Factoring is a rip off. Take a cash advance of a credit card, it's way cheaper, pay it back over a year, and now you are working without paying for your money. The fees on top of the percentage the factors charge are outrageous as well. $25 to wire transfer is one off the top of my head.