Third party dispatch?

No it is in no way, shape, or form any sort of brokering. They do not own any freight they need covered with a truck. They simply provide a service of connecting truckers with brokers or shipppers who do own the freight.

 

How do you mean?


dispatch 1 can book x load for $100 and charged 4%


Dispatch 2 can book load x for $150 and charged 15%

What one do you use? As you see not all things are created equal in business, you have to play smart to win.

 

Most dispatch services would be signing rate cons, doing carrier packets if you aren't set up with the agent (one would think so anyway) I dispatch my other half and it isn't just making a few phone calls its fostering relationships with the good agents so they call you before a load hits the board sending emails to your go to agents when you are going to be in a certain area's. I think I will start charging JJ 5% All last week I had Agents call me its very rare that we even look at ITS now.l

Do I think my time is worth 5% Heck yeah I do and so does JJ.

 

You are agreeing with what I stated. I was adding to "you get what you pay for"
using your example the first brokers load is $96, the second is $127.5
my point was that you get what you pay for, you may get less than what you pay for but not more. You pay a dispatcher 4% and with your example essentially leave $42.50 on the table.
My grandmother pinches every penny and only buys the cheapest products possible... She bought a broom for $8. Broke 3 of those brooms in 6 months at a cost of $24. I bought her a broom for $20... That was 5 or more years ago and last I heard the cleaning lady is now using it. Cheap stuff is usually not worth anything. Better to spend the money on something that's worthwhile and has durability, and will cost less over its life. Quality is worth paying for in my opinion.

I dont feel feel that using a third party dispatch is a viable long term business plan. I expect more money can be made leasing your truck to a reputable, percentage based company with their own customers, a proven track record, and solid rates. A good carrier can bring quite a bit to the table.

 

If your paying 15% for dispatch why wouldn't you just lease on to someone. I only give up 15% to the company I am leased to, they have plenty of direct, well paying freight! pay all IFTA and pay every Friday. Plus they handle all the compliance issues.Dispatch is non - forced but if it is a direct customer and you are the only one in the area it would be in your best interest to accept the load. Gotta keep good customers happy. I can't see having to deal with all of those headaches and then pay 15 % on top of it. Normally they have a load ready for me as soon as I get empty. Seems if you are not good at negotiating with direct shippers and are not big enough to hire people to do this then it would be more beneficial to lease to a company that provides this.

 

BINGO! You hit the nail on the head.

 

Once again, that's IF you can find a company that pays good, I've seen very few averages I liked when looking.

 

Good point, but thats whats involved with being in business, finding a good deal.

 

If you get a load from a broker and give it to some random trucker he picks it up and delivers it you take a % give the rest to him.. Sounds like double brokering no? Also will be have to put your company info on his truck, wouldn't that be leasing to you? Even if it is one load?

 

I connect drivers with brokers who have loads on occasion that does not make me a broker. Dispatch services do not broker anything. They have nothing to broker. They simply look at the same load boards as any carrier or driver could look at themselves and find loads from freight brokers who "own" the load has all the proper credentials to broker freight. Dispatch service is providing a simple service to drivers. Hey I'm too busy to look at loadboards I'll pay you to find my loads... dispatch service will never see any payment from a broker you will get paid by the driver. Most they will do is sign load confirmations on behalf of the driver and maybe filling out carrier packets if they are allowed to. Dispatch services are an unnecessary middle person leaching from the rates no you don't lease on to a dispatch service.