Anyone out there letting O/O's bid their own loads?
- Thread starter RoadSaint
- Start date
wayneygogo
Seasoned Expediter
Good insight into multi carriers. I see your point in how dealing with multi carriers could overall reduce the indrustry wage. 70 percent of the time these carriers are not bidding on the same loads, dramatically increased my odds
The theory that it dramatically increases your odds is not one that has been proven to be correct, at least not in terms of revenue. That's why the multi-carrier model is so flawed. Carriers who participate in the multi-carrier model tend to be chiefly bottom-feeders to begin with, carriers who will often be passed over for more reputable carriers with a proven history. And in places where the low price matters most, that's precisely where multiple carriers are the most likely to be bidding the same loads for individual vans, places like Laredo and other places where there are more vans than loads.
wayneygogo
Seasoned Expediter
I see what you mean. I just left Tulsa for $0.75. anyway. You know the one carrier told me if I were to stay in his lanesthe message is received, I the revenue would probably be the same
wayneygogo
Seasoned Expediter
Sorry about the garbled mess sometimes when i receive a text message it picks up the voice. from the phone. Yes I think it would be better to drive for one carrier , in the same lanes, in making a guaranteed rate. I am still kicking it around and talking to a few reputable carriers.
You just run your business the best way you see fit All week give you is our opinion in our advice of our experience the rest is up to you take what you need to leave the rest best of luck Ken a.k.a. OVM
wayneygogo
Seasoned Expediter
I do appreciate all the experience, insight, advice and suggestions. I am certainly new to this, I'm attempting to go from A to B as quickly as possible. thanks again
I feel like it undermines the company when drivers start to even look for loads. Drivers should NEVER be bidding on loads. One obvious thing that can go wrong is 2 drivers could bid on the same load and get it. Bad idea all around. If a driver doesn't have faith in his company, then he should find a new company.
I would have to disagree with you and site Land star as an example. at land star your success is based on you being able to see all available freight including what it pays and you can call the agent directly and book the load. I see nothing wrong with it as long as the driver can do basic math and speaks clear english.
RoadSaint
Expert Expediter
Most carriers who participate in the multi-carrier style don't operate this way, and so this is mostly a fictional scenario that is generally spread by exclusive carriers and their drivers who don't necessarily know better.
While I agree that carriers that normally participate in the multi-carrier style are smaller carriers and "bottom feeders" as has been said here, they are completely aware of the potential for this issue, and so handle the bidding process by contacting their driver FIRST, and saying, "Hey, there is a load from Laredo to Memphis picking up at 13:00. Do you want me to bid on it at X rate?"
Then they bid and let you know if you get it. So, the scenario would ACTUALLY look like this:
first carrier texts you: load from Laredo to Memphis picking up at 13:00. Do you want me to bid on it at 0.60/mile?
You: Sure.
2nd carrier calls: load from Laredo to Memphis picking up at 13:00. Do you want me to bid on it at 0.55/mile?
You: No thanks.
1st Carrier calls: We got the load! (Or not, but at least you didn't bid against yourself.)
Also, if the second carrier calls and offers to bid the job at higher than the 1st carrier did, you then have the option to say yes to the second carrier, building your rep with them while knowing they're unlikely to win the bid. But IF the first carrier doesn't win because the shipper had a bad experience with them or something, and they go with second best rate, you may have actually bid yourself up, and got a job you otherwise wouldn't have with a single carrier.
That said, most of the big guys get first crack at a healthy portion of loads before the smaller carriers ever see them. Panther, Load1, etc are all going to use their own drivers before they put a load on a bid board, so working for a large carrier definitely has upside. Especially if they take good care of their people.
That's all well and fine on open board bids ... But there are the email type bids and offer to bid where the carrier is blind.... And has no clue as to what the low bid or best bid offer is unless the load broker says here's the low bid . Can you beat this?
RoadSaint
Expert Expediter
It still applies. You simply don't tell the second company to bid a lower price than the first one. Most of these smaller companies don't have multiple trucks in the area, so if you're not taking it, they're not bidding it, which means you're not bidding against yourself unless you know you are and are doing so on purpose, which there could be reasons for you to do so. This is no different than bid boards. And as far as I know, most bid boards are "blind" bids. I don't know of a single board that is an "open" bid board that allows you to see winning bids.
I have a friend who does the multi thing and absolutely runs into cases where more than one carrier bids on a load. Regardless those companies need to crawl back in the gutter they came from.
RoadSaint
Expert Expediter
You know, I normally find some wisdom in what you say, but I'm sorry to say that this statement reeks of bias. Really read what you're saying there. You're saying "regardless", which means even if that is NOT the case, they're bad or some such nonsense. What do you have against small companies trying to make it in a big company's world?
Have you no compassion for the little guy? Aren't you one of the little guys?
at least you know how he feels about the subject......There are quite a few that blame the multi carrier in part for the demise of this business, and when ones future and livlihood feels threatened by that...then toss in the fact he operates under a carrier that feels the same way.....well you see what ya get...
BUT.....as the multi's are dying off....is the business getting any better?.....Nope, not at all...so were they really to blame or is the makeup of this business just evolving into a different form?...Now it seems now its an industry of part timers and the semi retired....
I can vouch for Xiggi he has the utmost respect for the little guy as he himself is one as is all his buddies out here...We are ALL small businessmen here......
Small carriers can be very good there are some out here that do it right. Your own example of .60 and .55 points out some do not. Multis create false capacity and often offer no advantage to the naive driver other than high insurance costs, cheap rates and no more miles combined than a legitimate carrier big or small. No I don't like the companies that run that model but that has nothing to do with the drivers themselves.
You can be a small carrier and do it right. Every carrier started out small for the most part. It is harder than the multi route. Takes more investment, time and effort and the results come slower. But those carriers tend to last and you don't see them closing up and burning owner ops time and time again. Look at the number of carriers we have seen come and go on here in the last few years. What percentage were multis?
Keep in mind, that when you have many of the multi's bidding a load, some will bid it whether they have coverage or not. And then rebroker it. It would be foolish to think that isn't happening.
especially ones with no QC or tracking device....what stops them from listing the same van in say Lexington, Louisville and Walton?.....to cover as much land as possible....who would know?