Qualcomm Charges

[Turtle]

Well then what's the big whoop about what they charge?

The big whoop is that it's a blatant cash grab, and they will lie about what it costs them to defend it.

When Qualcomms first hit the industry they were expensive, both startup and repair costs, as well as operating costs. Additional money on top of the actual costs were taken in to provide for maintenance and repair, but long ago there were more than enough units in service and in reserve, most of them paid for, to more than cover maintenance and repair (and simple replacement) costs. Additional money beyond actual operating costs should be at a minimum at this point, but it has become a revenue stream they aren't likely to give up. The operating costs of paying per-character was done away with by Quamcomm more than 4 years ago, so the daily operating costs have both stabilized and dropped in dramatic fashion, yet the weekly operating deductions remain the same. They're saving a snotload versus what they paid 6 or 8 years ago, and are passing zero dollars of it on to the contractors.

I still have my original equipment that I got when I started at Con-Way NOW, and it's now been at Panther for an additional four years. The only thing that's been done to it is I clean the screen and keyboard once in a while. That's it.

The fact that I make money from it doesn't excuse the obscene markup I must to pay for the privilege.

 

[greg334]

Turtle,
I understand that's it a cash grab and I don't like it either but the point seems to be moot because most of us are all dealing with the same thing and the same rate. All of us complaining doesn't seem to impact anything, that's my point.

They are not about to change it because they still have a supply of drivers/owners willing to pay it and until the competition starts getting the good drivers from their fleet, then it is unlikely that it will change.

I see Bolt doesn't charge, who else doesn't charge a fee?

Why doesn't Bolt charge a fee?

Are they trying to retain their owners and attracting new owners by lowing the cost of doing business?

 

[chefdennis]

I seen Bolts Ad and i can only imagine that it is for NEW HIRE...the rest of us are still paying the $30 a week....I will be calling about it..just haven't done it yet....

 

[davekc]

Just for what it is worth, several truck load carriers charge the 11 to 12 per week. Whether expedite carriers will change is hard to say. But, it is still a total cash grab as Turtle said. I see absolutely nothing that would indicate otherwise.
Same thing applies to some of the insurance that carriers supply.
Some readily admit they are making additional income through this process.
I think for some it goes back to the integrity issue. Reminds me of that saying "don't pee on my leg and tell me it is raining".

 

[Turtle]

Turtle,
I understand that's it a cash grab and I don't like it either but the point seems to be moot because most of us are all dealing with the same thing and the same rate. All of us complaining doesn't seem to impact anything, that's my point.

Point well taken, and I understand it. My point is, it's not about the money, it's the principle of the thing. If they would be honest about it, that would be different. Instead, they come up with all kinds of invented and way outdated crap to justify it.

What really chaps my aѕѕ is that we at Panther went through 3 weeks there where the QC's didn't work at all, and then another 3 weeks where it would randomly work, but was down more than it was up. Yet they still made us pay for a service we weren't getting, and had to blow a snotload of cell phone minutes on top of that. Yeah, sure, they still had to pay Qualcomm for those weeks, but the cause of the failure lies not at the feet of Qualcomm, but with the IT department at Panther who broke both of the cardinal rules of IT and performed an upgrade without knowing what was going to happen, nor with a way to quickly and easily roll it back. Yet they still charged us weekly like nothing was wrong.

 

[greg334]

but with the IT department at Panther who broke both of the cardinal rules of IT and performed an upgrade without knowing what was going to happen, nor with a way to quickly and easily roll it back.

See the foundation of your post and agree.

It is amazing how these people keep their frickn' jobs. I would have fired a lot of people over this but it goes back to something I have noticed, a lack of an attitude that sometimes this is mission critical work, from the customers to the driver with many of these companies. We don't work 9 to 5 but 24/7 and it matters to all involved. I heard some excuses when requesting just data dumps, but to screw up like this ...

 

[CharlesD]

I have a great Qualcomm program. I don't have them.

 

[LDB]

It is no different than if they say they pay xx% and they really pay xx-y% by using a third party or sister company or whatever, a subject you very strongly complained about elsewhere. It is the company taking money away that should be paid to the operator or else they should honestly inform all applicants that in addition to their cut of rr% of the tariff or all monies over $x.xx cpm they also take a profit of x amount off the QC charges. It's about honesty and disclosure.

 

[Vinnie T]

I disagree. $35 per week is $1820 annually. I've got a QC unit that's been around for probably a decade. That's $18,200 income to the carrier over the decade the unit has been available for install. Yes, there are costs, but the depreciated cost of the unit isn't that high. It's a profit center at any weekly amount of $3x or more.

There are also monthly monitoring fees and parts an lobor to maintain the units. The carrier are not going to loose money by using QC's. But it isn't a 'profit center" as some have indicated. Also what technology lasts for 10 years? They are swapped out every couple years when the technology changes. I guess a more fair way to do it would to charge tit for tat the costs associated to the O/O. But Imagine a company like Panther having to do that for 1000 plus drivers every week along with the settlements? So it appears they charge a flat rate per month to save on administration costs.

 

[davekc]

There are also monthly monitoring fees and parts an lobor to maintain the units. The carrier are not going to loose money by using QC's. But it isn't a 'profit center" as some have indicated. Also what technology lasts for 10 years? They are swapped out every couple years when the technology changes. I guess a more fair way to do it would to charge tit for tat the costs associated to the O/O. But Imagine a company like Panther having to do that for 1000 plus drivers every week along with the settlements? So it appears they charge a flat rate per month to save on administration costs.

Well for starters Vinnie, there isn't a carrier out here that switches to new units every two years. Not even close.
At 35 per week x 52 weeks = $1820
If the unit costs $1800 how much maintenance is one doing on one???????
Qual-comm says the transmitting fee with a leased unit is 11 to 12 dollars for basic service. With add ons it could go to 15.00
Using Turtles unit at 5 years is $9100
One could buy numerous units and still have a potful of cash left.
Comes down to just doin the math.

 

[LDB]

Vinnie, out of curiosity, what is it about this that makes you so adamant the companies aren't making a profit center out of the QC? You seem pretty passionate in their defense. Anyway, I have a QC that's many years old. They certainly aren't changing them on a 2 year cycle and in my case not even a five year cycle. At $1820 per year income it probably takes about 30 months for the unit to go from red ink to black factoring in purchase and operation costs. At that point it's all profit for the remainder of the lifecycle after the usage fee, probably at least 3 and more likely 4-5 years minimum. Even if we're extremely excessive in our estimation of weekly operating and maint/repair costs at $20 a week, probably double the actual amount, that still leaves $15 weekly profit for several years. Most likely it's more than that every week.

 

[Wolfeman68]

Well for starters Vinnie, there isn't a carrier out here that switches to new units every two years. Not even close.
At 35 per week x 52 weeks = $1820
If the unit costs $1800 how much maintenance is one doing on one???????
Qual-comm says the transmitting fee with a leased unit is 11 to 12 dollars for basic service. With add ons it could go to 15.00
Using Turtles unit at 5 years is $9100
One could buy numerous units and still have a potful of cash left.
Comes down to just doin the math.

I agree with the doin the math part Dave, but John started this thread asking for input on the add ons he is looking at. I haven't seen what he will charge yet, but as a fleet owner I plan on putting the package in my trucks. The reasons? Time and money.

I reimburse my drivers for the costs of scanning paperwork and the stamps to mail it so we can get paid for the loads promptly. If the paperwork can be scanned from the truck, the fax costs of $2 to $4 a page is eliminated as well as the search for a mailbox saving some fuel since not all truck stops have a mailbox, not to mention the time it takes to do all of this which is worth something as well.

The email option will save all of us some cell minutes and enable me to contact the drivers from my unit and vice versa should they have some problem with their truck. It will also enable my wife, who does the books, to contact them for whatever she needs saving more cell minutes.

The routing option would be beneficial since most GPS systems are auto based and most drivers aren't going to pay for truck based systems or the upgrades. Frankly, neither am I. It could also eliminate being put on truck restricted roads, low bridges, especially in the Northeast, the address you're looking for not being in your GPS program, and minimize getting lost. All of this would get the load delivered faster allowing the driver to become available for the next load sooner.

No, I haven't figured the costs right down to the last nickel, but I can see that this system can make each driver more efficient thereby saving time and time = money.

Bottom line is that I know John well enough to know that whatever he decides to charge will be fair because he genuinely wants his contractors to make money and I want my drivers to make money. I think that making the drivers more efficient and improving communication is a good way to do it.

 

[LDB]

Another thing to keep in mind is the Tri-State sliding fee on QC. For every year a truck is on with them the cost of the QC drops 20% so that from the 6th year onward the truck owner pays zero for QC. If the monthly usage/repair fees were all that significant they wouldn't offer this reward for longevity.

 

[Vinnie T]

Well for starters Vinnie, there isn't a carrier out here that switches to new units every two years. Not even close.
At 35 per week x 52 weeks = $1820
If the unit costs $1800 how much maintenance is one doing on one???????
Qual-comm says the transmitting fee with a leased unit is 11 to 12 dollars for basic service. With add ons it could go to 15.00
Using Turtles unit at 5 years is $9100
One could buy numerous units and still have a potful of cash left.
Comes down to just doin the math.

All fair questions to all who responded.

I know that Panther upgrades their stuff every so often and I read so and so carrier doing to same. Now they are working with QC's that have in cab emailing, scanning etc. As i said these system change and are upgraded, some carriers choose not to upgrade, some do. There are many products on the market and I have researched many of them and they are all very different. Some have batteries that need to be replaced every 6 months to a year that are expensive. Sats act up quite a bit and I see ops returning to the yard to get things worked on and fixed. Many carriers have people on staff just to work on these units that require a yearly salary, payroll taxes and health insurance needs to be paid along with the facility itself to work on this equipment. Or worse yet they farm out installation and repairs to repair facilites like Frieghtliner that charges 90.00 and hour for labor. I'm just saying to everyone, it's not just the cost of the unit and the monthy fees associated. Another area that costs is integration into the dispatch software, depending on what systems the carrier uses that can be a big some of cash to pay a programmer to do that. I know some systems charge per truck and per load to do this! Yes it's the cost of doing business for these carriers, but after reading post after post of this being a profit are for carriers, I do not feel it is as much as some of you may think. Do they overcharge and make some money on it? Sure, but as I said before they are not going to loose money of having these units in yours and my trucks, that's just how most carriers operate. Now decals..that's a different story!

 

[Vinnie T]

Vinnie, out of curiosity, what is it about this that makes you so adamant the companies aren't making a profit center out of the QC? You seem pretty passionate in their defense. Anyway, I have a QC that's many years old. They certainly aren't changing them on a 2 year cycle and in my case not even a five year cycle. At $1820 per year income it probably takes about 30 months for the unit to go from red ink to black factoring in purchase and operation costs. At that point it's all profit for the remainder of the lifecycle after the usage fee, probably at least 3 and more likely 4-5 years minimum. Even if we're extremely excessive in our estimation of weekly operating and maint/repair costs at $20 a week, probably double the actual amount, that still leaves $15 weekly profit for several years. Most likely it's more than that every week.

Are you saying your charged 20-35 a week for QC? If so that is a cash grab if your using older technology. In your case i would be upset too and stand corrected if that's the case. I remember when it was something like 30.00-40.00 a month. I know some of these units can be big money times 100-1000 or so trucks...wow

 

[Bruno]

30-40 a week for a qualcom is not a profit center for a carrier. There are costs to install the unit, monthy monitoring fees, repair costs, and the initial cost of the unit at 1800.00-2000.00 a shot. IMO it's a wash for the carriers.

I'm with Leo on this one. I had a QC in my one truck and I paid to have it put in at PJ in Canton. That CQ was in the Truck 11 years which the carrier got $14,300 from me over the 11 years and got the QC back. Do the math based on 1200 trucks over the same 11 years, it's $17,160,000.00 paid to the company that paid $1,440.000.00 for 1200 qc. I know there is monthly fees, based on $11.00 a week or 1200 trucks that is only $7,550,400.00 for the 11 years. Now that would leave $9,609600.00 after the fees. Now I know there are repairs of units so lets go high and say they spent $100,000.00 a year or $1.1 million over the 11 years. That leaves $8,609600.00 or $782,690.91 a year they make in QC charges.

So I think carriers are making money off the QC.

And those numbers are based on being charged $25.00 a week for the QC. Most have changed the rates to $35.00 now. Which means based on the same 1200 qc for the same time the carrier would get $12,733560.00 or $1,157,596.40 a year after all cost. Now I did make the cost of the newer units at $2200.00 each for these numbers.

 

[greg334]

Yea but Dave, the carriers are making money off of us all different ways. To figure out the amount is like trying to figure out how much money you lost when you didn't get a call for a run - there is no real loss in not getting that call. I agree that they shouldn't but they do, just like the insurance, the workman's comp and so on.

If people should complain, then complain over the cut of revenue for pallet jack use, lift gate use, inside delivery, and the 42 to 35% that they get on each load. I don't see the 35% as a reasonable cut, but I have to live with it. I understand that there is overhead with me being in the fleet but on the other hand if I am utilized 3 days out of 7, then it means that they are not running their business effectively enough and the cut should be about 20%.

Unlike those customer charges that are passed on with a cut, the Qualcomm, like it or not provides us a valuable service - it allows us to be located without calling us up so we get work.

Remember that 90% of this work is all about being in the right place at the right time.

 

[ebsprintin]

And the companies are probably saying that drivers are using fsc as a cash cow. It goes both ways. When the totals don't add up, that's when you renegotiate, walk, or live with it. It doesn't hurt to study these things, just don't lose sleep over it.

eb

 

[Bruno]

And the companies are probably saying that drivers are using fsc as a cash cow. It goes both ways. When the totals don't add up, that's when you renegotiate, walk, or live with it. It doesn't hurt to study these things, just don't lose sleep over it.

eb

If you or anyone thinks that owners are are making money off the FSC, your wrong. I wish we was making money off the FSC like some companies do.

 

[davekc]

Are you saying your charged 20-35 a week for QC? If so that is a cash grab if your using older technology. In your case i would be upset too and stand corrected if that's the case. I remember when it was something like 30.00-40.00 a month. I know some of these units can be big money times 100-1000 or so trucks...wow

$30 to $40 a month would be a very reasonable charge as I think most would agree.
Many carriers including my own charge 25 to 35 PER WEEK.

Huge difference between 25-35 per week verses 35-40 a month.
About $100 extra per month per unit.