I know of a company that handles 3rd party dispatching. They charge 5% of the load handle the check calls if you want them to. They use an existing network of contacts to give their clients the best rates usually not under 2.00.a mile for all miles. I myself don't use them and I am not recruiting for them I just heard about the. So if anyone is interested is their number just pm me. Hope this helps.
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After a bit more time in the industry, 5% off $2 leaves you with $1.9 which i feel you can do better. Essentially you're outsourcing your job to someone else. I think it all comes down to how bad you are at getting your loads and how good is the dispatch. I feel that a good dispatch would pay for him/herself. But even if dispatcher books the same rates as you would you're still ahead as they just saved you a lot of headache and time. Now if dispatcher books crappy loads and you're loosing money clearly that's not sustainable.bullhaulerswife Thanks this.
If, for example, you average $2.20/mi on average 2500 miles/week, if your hired dispatcher is able to average you a mere paltry 300 more miles per week at that rate, then it has already paid for itself. Or, if your hired dispatcher can get your average gross per mile up 10 cpm at the same amount of miles, it has paid for itself.
If you only average $2/mi, then your hired dispatcher (a good one) will have paid for itself in one load.
If you really think about it, a good dispatcher at 5% is really one heck of a good deal, for those who aren't getting average rates.
If you're like RollinCoal and only run 1,000 miles a week at $6/mi, then you probably would not benefit.
But I'd dare say that a good 50% of independent O/Os out there would benefit from a good dispatching service.
You have to go there? I wonder why I even bother sometimes. Never made any claim of the sort. Good luck averaging $2.20 a mile to your o/o - after you take your dispatcher 5% cut - on 2,500 miles - 52 weeks a year - from spot market freight.
I was making an exaggeration when I said $6/mi. Was just trying to make a point.
And how is it hard to average $2.20/mi when you make more than that, from the same spot market? If it ain't long-term contracted freight, it's spot market. If the load don't make it on the loadboard, that don't mean it's not spot market, it just means it got covered before it was put on the board. In fact, I always have thought it was kinda funny how the spot market rates were lower than contracted rates. Since the purpose of the spot market was for small shippers who ship more sparsely, and for those loads where the contracted carrier fell through and the shipper/broker/3PL is desperate.
It's not hard to do. But you'll never average 2,500 miles a week over the course of 52 weeks at an average like that. I really shouldn't say that because anything is possible. And I am the guy who will sit at home for 5 or 6 months out of the year. Now I don't know the cycles of flat bed or reefer but with dry van you have some really wild price swings at times during the year in different areas at different times. Really, unless you know all markets everywhere somewhat good - which is a skill knowledge set that would take years to hone and even then not be perfect. So typically what I see where I run is about 8 or 9 months of good times and the rest is time to park.
I could modify my operation and learn other areas that might be hot when mine are cold but really I like time at home more than working 50 weeks a year like a slave. You'll have to learn freight cycles and build connections. Your drivers will hopefully be no nonsense who do the job with little to no fuss. As far as why spot pays cheaper typically is simple. The service One gets from typical truck hauling spot freight is terrible almost every time. It's really not so hard to provide first rate service out here and set yourself out from the crowd because no-one does that. Which baffles me as we are service providers and live or die by what a customer thinks of our service.
I've heard the stories from connections that use me many times. Bill has brokered freight he can tell lots of horror stories too. So here is the deal, when you know you're not getting any sort of dependability why would you pay a premium? You wouldn't. If you pay Amazon $20 to overnight a widget and they don't provide a tracking number and the widget shows up 3 days later you'll be pissed, demand your money back. It is the same thing with spot. You can count on lousy service so trucks like that are only worth $1.50 a mile. If you have anything that is time critical and put it out there on spot you hold your breath using an unknown carrier.
Here's another thing. You would think because you have a reputation for reliable service they'll be knocking the doors down to load you. If you're expensive better think again. When they do you know the market is super hot, hot, hot. Gets you tuned in to the trend. Normally it's always about price with dry vans. There are no friends. I'm what brokers refer to angrily as a vulture. Circle around watching for the desperate ones and smacking with a hammer. So what who cares? No-one cared when I didn't know wtf I was doing and struggled to get cheap $2 mile loads. They make a killing on cheap trucks anyways. Anyways, if your drivers take care of you and the customers you can do ok but it's never a cinch. Always have to fight for everything.Last edited: Sep 3, 2014
BoyWander Thanks this.
That was very revealing...didn't know spot market trucks were that unreliable. And that the reliable ones aren't always rewarded.
Makes me think even harder.
If I had $100,000 to throw away, I'd go buy a truck and trailer and see how I do. I bet I could survive a year by myself. Might not make as much profit as some here but I am betting the truck I'd buy that I'd make it at least a year. I bet I could make $100k profit in a year if I really worked hard at it.
Even at $1.85/mi, 3k miles a week times 46 weeks one could still profit $90k, I don't see how that would be too difficult.
I got those numbers by taking 3,000mi / 5mpg x $4/gal, then adding $1200/week for expenses - truck, trailer, insurance, maintenance.
$90k would be before paying myself. So that's $90k profit to the truck with 6 weeks off. Some of that being spent on repairs, some on home time.
Is $90k a year profit to the truck for an independent not enough? I'm not gonna ask what others make, but seems that even by average, a good profit can be made.
you would be better off sending emails to all the brokers you can find telling them where you are going what kind of equipment you have and give the rate that is acceptable to you and for them to call you if the loads they have meet you parameters,,
Paying a fee for a dispatch service , factoring your invoices , paying a fuel tax service, etc,, all eats into your bottom line,,many O/Os have wives at home that search for their freight, it would be cheaper to hire an employee dispatcher that paying a dispatch service a percentage,
Going on your own with your own authority can pay off very well but it takes a lot of work to be profitable,,can't make it if everybody is in you pocket. There is not a lot of profit in trucking and everything you spend money on needs to be carefully done,
Brokers and agents for companies will call you and search you out if you give good service at reasonable rates,,
Over half my freight they call me even when they can find someone cheaper,,they call me because I get the job done and they have no worries when their freight is on my truck,,One broker I dealt with always told me that he did not have a problem paying me more because he could sleep at night .
Harvest broler emails off load boards and let them know who you are and what you can do,,after a while you will delete the bad ones and the good ones will call you.
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