Thinking About Starting Dispatch Service

Howdy folks. I have been in trucking for way too many years I guess: since 1985, starting as an OTR company driver for 14 years and then into dispatch, safety and customer service jobs, in both large companies and smaller companies. I quit every one of them because I got tired of the abuse, either of drivers or staff.

During my 30+ years of tenure I've witnessed all the changes that have come down the pike: none of them of any benefit to the drivers. I keep thinking and hoping things will get better for drivers but they never do and apparently never will. Trucking companies have mastered the Walmart business model of externalizing all the costs (lease programs and owner ops) and internalizing all the profits. They have mastered it to the extent that a contemporary dispatcher job is not really a dispatch job any longer; it's a whipping post job. The reason I say that is because when the drivers - whether they are company drivers or owner ops or involved in one of the cheesy lease programs - are starving to death (as the company bean counters meticulously planned) who are they going to call and blame? Their dispatcher. I've taken more cussings and been abused by angry drivers more times than I can even count. But as their dispatcher there is absolutely nothing I can do to help them; the bean counters had it all figured out before they signed their contract and no matter what I do, the drivers are not going to make the money they SHOULD be making.

I am unemployed and have been unemployed for a few months, looking for that next job at a "good" company. Right now, I'm convinced it's not out there; they are all doing the same thing. As example, I talked to one company who during the interview explained how they hire newbies and train them, put them into company trucks as company drivers - and then deliberately give them the ugly short haul loads to starve them out and to force them into leasing a truck from the company and becoming an "owner operator". That soured me on the company instantly.

In my job search I interviewed for a couple of dispatch jobs that would have paid me a commission; which was a new beast to me; never heard of such a thing until recently. They wanted to pay me 2% of the loads I booked. I didn't take them up on the offer, needless to say. I have been in the business long enough to know what broker freight pays, and I have this bad habit: I like to eat. 2% of the company cut wouldn't even keep me in cigarettes.

It did however give me the idea to maybe try to start my own dispatch service for owner operators with their own authority. I really would like to give something back to the industry and do something that will actually benefit the drivers for a change. It just seems to me that running a dispatch service could be a very good thing for me and for a few owners. I'm not talking about doing this on a large scale. I am not the least bit interested in growing into a large company. One of the insidious problems I've seen at trucking companies time and time again is sacrificing quality for quantity, and I just ain't going to do that.

I would like to have a fleet of no more than 5 or 6 owner operators and book their loads for them. Certainly none of us would get rich; no one ever gets rich in trucking. Unless they adopt unethical practices, like suckering newbies into lease programs....But I really believe I could help a handful of owner ops maximize their profits, and make enough to keep beans on my table. I know how to work the broker boards and negotiate rates. I know how to shuffle the paperwork around and what goes to who and who needs what and when. I've done collections and know how to get us all paid. I can do this stuff. Seriously.

But I need a few owner ops with authority and wagons. Although I do know some very good drivers and have stayed in touch with them after leaving a job, I do not know any owner ops with authority because I have always worked for a company so did not encounter any authority holders. Where do I find them?

I can't help but believe this is feasible and that it could be a very good thing for everyone involved. I know, I've read some of the earlier threads on dispatch services. Some owners love the thrill of the load hunt. Some feel like they want to build the relationships with brokers or shippers. I understand all that; I get it. I don't know how they have time to watch the boards and book their loads while they are herding the truck down the road, but more power to them if they can do all that. But I really think I could help even those guys. I saw some comments about a dispatch service not always having driver best interest at heart and maybe not always fighting for the best rates and deals. In the business model I envision, I disagree with that notion. It would be in my best interest to negotiate the highest rates possible, find the cleanest loads, and keep the truck moving where the driver wants to go and into areas where freight is always moving. I CAN see how the aforementioned notion would come into play if the dispatch service started trying to grow too big and overwhelm the dispatcher with more trucks than they can realistically handle. But that is exactly what I intend to avoid. No more than a half dozen trucks on my board! Ever! Quality first, foremost and always! In my scenario, the driver/owner operator would be MY customer and that is the one person in the whole mix that I would want to be happy and profitable; not the broker, not the shipper, not the mega trucking company, not the stock holders - just the driver. As for the guys who want to build the relationships, they would be more than welcome and I would absolutely put them into contact with anyone we were hauling for. From my perspective, I would rather lose a driver to a dedicated lane he negotiated through our contacts than see another unhappy driver.

What say you about this idea?

 

How much are you charging for your service?
%of load?

 

I think charging a percentage of each load would be fair to all. I'm thinking 10% of each load booked. I'm also thinking maybe a sliding scale where I would get a smaller percentage for loads that pay over a certain amount. IE - a short run that paid $600 I get the 10%. A longer run that paid $3000 I could charge maybe 5%, or maybe even a little less. The sliding scale seems fair because the driver would have more expenses on a longer run, but my costs don't increase for the same run. Thank you for asking! I'm seriously trying to be fair and honest, and surely we can all make a reasonable living and be helpful to each other doing this trucking thing!

 

http://www.thetruckersreport.com/tr.../dispatching-for-drivers-your-opinion.302963/

 

Thank you! Great minds do think alike... but I also see he caved in and went back to driving...

 

So are you still considering doing this? I'm interested.

 

This is funny... you sound like me two years ago. I was working for a BIG broker and I really wasn't happy with the way drivers (O/O) were treated. One morning I said to hell with it, packed my stuff, walked out the door and started an independent dispatch service. One of the best and worst moves I ever made but I am grateful every day that I don't have the bureaucratic BS trying to help someone out and I am not negotiating to the penny to see how little I can get someone to take this load for. Empty promises of "Yeah, I promise that title will be there before you get there", knowing full well that it was never sent but I am not supposed to say anything.

This has been really hard for a couple reasons but I sleep really well at night now and I know if I screw something up that it is on me and not because someone else dropped the ball. Every call that came in to the broker was "one and done" meaning pass it on the appropriate dept. or person. If they forgot or got busy so be it. You were done and that was all that matters. But when there is a carrier waiting on a gate pass or some simple fax why transfer them 6 times to get done what I can do in 2 mins????? Rant over sorry.

Back to the matter at hand. When I walked out of that job I had one phone number but that was all I needed. It was an O/O with 2 trucks. I called him up and pitched my service and I sold myself short. I had only really seen this from the brokers side. there is a ton more on the carriers side and not to mention all of the accountability lies with the carrier. Everyone is gonna pass the buck off to the one laying hands. or ties, on the car. This 1st company and I found our "niche" His profits increased by almost 40% in just 6 months. I was learning so much daily and it was great. Then I started incorporating other carriers and it all started going to hell.

I had a driver with "6 years" experience that forgot to check the hood latch on a 2013 porsche and guess what happened???? That wasn't the problem though. The real problem was lie after lie denying he caused the damage and trying to change the date stamp on pictures etc. Then another with multiple 9 car haulers had a different idea than I about how to make money. The problem there was when carrying 8 cars from N. Wisconsin to N California and I get a call that the trailer has broken down in NM???????? NM' really???? why are they in NM its adding 1100 miles to a 1400 mile trip. That is only 2 carriers I worked with, there are many many more. I am sure that their version of events will also differ from mine however I am still looking for carriers that really want to go out there and make a few bucks. Not everyone works the same and some carriers strengths are other carriers weaknesses.
Figure out what your strengths and weaknesses would be and how to bring in the bucks for them. The money will trickle down to you. Don't charge any more than 10% and don't take on too many clients. I am available to my guys 24/7 and they know it. I know of dispatchers out there that have lists of clients. My question is how good of a job are you doing if you have a revolving door???? Some carriers just want to find someone to book the occasional load.. Be honest and fair and when you screw up and you will, we all do, do what you can to make it right.

Good luck I wish you the best!!!!!!

Karen