JOHNCLARK
Expert Expediter
I get the opportunity to meet a lot of great O/O's when I am out on the road traveling. The majority of them are cargo van and sprinter van owners. I listen about "the good ole' days" and today's market and alot of depressed rates and low miles.
On a particular occasion I came across a lady that was a owner of a cargo van and she was "OTR" due to the fact that her husband had lost his job due to a illness and she worked very hard to find a job in her town and it turned out that expediting was her opportunity to provide for her family.
After discussing rates,mileage, time away from the home I was floored at the quality of life that was non existant due to insufficient work for the van. The rate was approx $.72cents a mile and she had also paid fees to be leased on. And on top of that was being paid bi-weekly with a specific time so if the paperwork was not in the money would not be there till the next pay cycle.
And the whole time I was thinking, If your a medium size to large carrier, would'nt you sign the cargo van on at let's say $1.00 a mile for example with no weekly charges and quick pay at no cost.
The way I see it, straight trucks and tractors are my most profitable vehicles and cargo vans are the least profitable. And that's fine. Cargo vans in my opinion are "the bait" for the customers. For example if I where to pay a cargo van $1.00 a mile and charge my customer $1.05 a mile it's a incentive for your customer.
So would'nt make sense to compensate your van more, charge the customer less and use this as a advertising or incentive to get their more profitable work? Business is give and take.
You would be generating more opportunity for your van, paying a better rate for the service, and covering more ground and that means more mileage which means a better revenue to the truck.
Here's my concern. I know the company that the lady was signed on with. She was compensated $.72a mile, but when you call dispatch for a rate to hire the van the minimum was $1.35!! So whats the score in this game? The company made the same she did and they still charged her fee's! Thats ridiculous! If the same driver I met was making $1. a mile and dispatch where to charge me $1.05 (example) Not only would I do more business with this company I would also offer them straight truck and tractor work at a expedite rate when I had it.
So the moral of this story is?? Well I don't know. It just seems the vans get screwed daily. There's a lot more companies these days supporting the independents. And my understanding is the independent insurance cost less than the weekly fee's to be leased on to most companies.
Just my 2 cent. Probably not worth a penny
On a particular occasion I came across a lady that was a owner of a cargo van and she was "OTR" due to the fact that her husband had lost his job due to a illness and she worked very hard to find a job in her town and it turned out that expediting was her opportunity to provide for her family.
After discussing rates,mileage, time away from the home I was floored at the quality of life that was non existant due to insufficient work for the van. The rate was approx $.72cents a mile and she had also paid fees to be leased on. And on top of that was being paid bi-weekly with a specific time so if the paperwork was not in the money would not be there till the next pay cycle.
And the whole time I was thinking, If your a medium size to large carrier, would'nt you sign the cargo van on at let's say $1.00 a mile for example with no weekly charges and quick pay at no cost.
The way I see it, straight trucks and tractors are my most profitable vehicles and cargo vans are the least profitable. And that's fine. Cargo vans in my opinion are "the bait" for the customers. For example if I where to pay a cargo van $1.00 a mile and charge my customer $1.05 a mile it's a incentive for your customer.
So would'nt make sense to compensate your van more, charge the customer less and use this as a advertising or incentive to get their more profitable work? Business is give and take.
You would be generating more opportunity for your van, paying a better rate for the service, and covering more ground and that means more mileage which means a better revenue to the truck.
Here's my concern. I know the company that the lady was signed on with. She was compensated $.72a mile, but when you call dispatch for a rate to hire the van the minimum was $1.35!! So whats the score in this game? The company made the same she did and they still charged her fee's! Thats ridiculous! If the same driver I met was making $1. a mile and dispatch where to charge me $1.05 (example) Not only would I do more business with this company I would also offer them straight truck and tractor work at a expedite rate when I had it.
So the moral of this story is?? Well I don't know. It just seems the vans get screwed daily. There's a lot more companies these days supporting the independents. And my understanding is the independent insurance cost less than the weekly fee's to be leased on to most companies.
Just my 2 cent. Probably not worth a penny
