Satellite communications

Turtle

Administrator
Staff member
Retired Expediter
Again no one is holding a gun to the head of you people that dont like the QC charges leave and go to some company that doesnt have the QC or go out on your own
Just because the outrageous QC charges by some carriers isn't enough to be the deal-breaker that would cause someone to leave their carrier doesn't mean we don't have the right to voice our displeasure over it. It's not an either/or type of thing where if you don't like it you must leave. You can not like it, and be vocal about it, and still stay. Sheesh.
 

OntarioVanMan

Retired Expediter
Owner/Operator
I think John E could put a company spin on why the pricing is what it is...

even Leo's own numbers indicate a carrier makes back about 20 bucks a week..or $1040 a year per unit...so about 2 years they are paid for....

so a shipper needs a van quickly...he logs on and sees a van not 20 miles away...instead of putting it on a load board he/she calls your carrier directly instead of putting it on a load board....viola you have a load....QC can also be a money maker...

so Turtle...what would ya say...connection fee plus $5? or $10?
 
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Turtle

Administrator
Staff member
Retired Expediter
Well, a large carrier makes considerably more than $20 a week on it. But using those numbers, it's not as easy as 'just the connection fee plus' a $5 or $10 fee. Most carriers are "self-insured", so to speak, where they foot the bill for repairs on the units, either in-house or by an authorized repair facility. Either way that can be expensive. So money has to be made available for that. Also money needs to be there for replacements.

For a brand new driver with a brand new unit, $35 a week isn't outrageous, since you're literally renting the unit and are not taking any risks for maintenance and repair. However, for a used unit that's long been paid for, the weekly fee should be half, or less.

For a driver who brought his 4-year old unit from Con-Way NOW and has had it in service for more than 4 additional years all without a dime's worth of repairs, the weekly fee should be whatever the carrier pays to Qualcomm for the connection, and not a penny more. :D

In other words, longevity should be rewarded instead of using it as an easy revenue stream. For the first 2 years (for a new or a used unit, doesn't matter), $35 is fine. But after 2 years the weekly fee should be reduced by half, and then by half again every year after that, to where the contractor pays zero for it after about 6 or 8 years. Once the unit has been paid for, several times over, with additional monies having been collected for maintenance and repairs from that and all units, the price should come down.
 

greg334

Veteran Expediter
I agree there should be a graduated decline in the costs to the contractor over time and you make great points that justify it but the problem is that many here see this as another thing that provides little gain for the money which is wrong.

I think you know Turtle what the extended costs are of the overall system, maybe the companies are shifting that onto the contractor beyond the 15 to 28% of the revenue gross.

Many think it is just simply a program that shows trucks but there is a lot more to it. Cellphone stuff is in its infancy and somewhat hard to intergrate into some of these transportation programs a few of these companies use.

I just look at it as part of doing business and it offers me two important things - record keeping of the transactions between me and the company and access to opportunities because the company knows my location.
 

chefdennis

Veteran Expediter
Ok, I guess that is another feather for John at Load 1....Brand new units, including the document scanner so no additional fees for trans flo or any other faxes or other paper fees....and we pay less then the stated $35.00 a week....Thanks John...:D

Oh and yes as Greg said, it is "just part of doing business"....

Oh and this unit also has gps and internet connectivity...the deal just keeps getting better....
 
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Turtle

Administrator
Staff member
Retired Expediter
I wouldn't say that it's little gain for the money, as the QC is a very important part of operations for the carriers who choose to use it. It benefits the drivers, absolutely, but make no mistake, it has far more benefits to the carrier than it does to the drivers. Yes, it's a cost of doing business, but it's a high cost, that the drivers must foot the bill for, with a low value return. There are dozens and dozens of benefits of using the QC system, almost all of them directed at the carrier and not the driver. There isn't a single driver benefit that can't be provided in another, cheaper manner.
 

LDB

Veteran Expediter
Retired Expediter
Unless something has changed, Tri-State charges $35 a week during the first year a truck is on with them. Year 2 it's $28, year 3 it's $21, year 4 it's $14, year 5 it's $7 a week and from year 6 onward it's free. Considering the amount of turnover in the industry I'm sure the percentage of units going for free is very small. While it's still overcharging the majority of users it at least makes it fair for some.
 

chefdennis

Veteran Expediter
I wonder how many of us van drivers would turn down a $1.30 a mile to haul a single 1500 skid know that alot of Str trucks will run for that and we all know they haul CV loads, and we are really being way "over paid" at that rate... is it really "fair" to accept that kind of rate in a Cv???:rolleyes:
 

Phoenix4774

Seasoned Expediter
There is no justification for taking it from behind. QC is a money maker for both o/o and carrier when you find a convenient, fast load. I think it's bad business practice to overcharge for it, kinda disrespectful. The best place to split the money is at where the shipper is paying for the load.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Partnership? Give me a break....why doesn't some carrier like E-1 or P2 come online and explain the breakdown HOW they come to the $35 amount....because they are too arrogant and don't feel the need....how rude...:mad:
 

chefdennis

Veteran Expediter
I have to ask, where is the line in the sand that sayes the carrier is not suppose to make money off those that contract to them??? I mean, no one goes into any business to break even. Exchanging money is no way to run a business and any buiness person that sayes you can only make money off of a certain segment of those that you do business with is well...not much of business person....and all of us O/O's are in business for ourselves.....

And I do believe that each of us can buy our own QC and then have it programed to the carriers specs and then just pay for the service and not the unit....as long as your carrier will allow that.....

So again, where is that line in the sand as to where the carrier is limited in their profit centers or income streams???? And who gets to decide? I mean the carrier has the investment, should those that are contracted to him be the ones to tell the carrier you have no right to make money off me and how much money he can make???

And a "partenership!?!? Ok what part of your "profits" , that after your expenses are paid, do you feel you should share with your "partener", the carrier?!? :rolleyes:
 
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bobwg

Expert Expediter
How many of you that are crying/griping about the QC here on EO have brought this subject up with what ever company your signed on with? Doesnt seem your going to change anything here if you dont go to the company your with and gripe to them just saying
 

OntarioVanMan

Retired Expediter
Owner/Operator
I have to ask, where is the line in the sand that sayes the carrier is not suppose to make money off those that contract to them??? I mean, no one goes into any business to break even. Exchanging money is no way to run a business and any buiness person that sayes you can only make money off of a certain segment of those that you do business with is well...not much of business person....and all of us O/O's are in business for ourselves.....

And I do believe that each of us can buy our own QC and then have it programed to the carriers specs and then just pay for the service and not the unit....as long as your carrier will allow that.....

So again, where is that line in the sand as to where the carrier is limited in their profit centers or income streams???? And who gets to decide? I mean the carrier has the investment, should those that are contracted to him be the ones to tell the carrier you have no right to make money off me and how much money he can make???

And a "partenership!?!? Ok what part of your "profits" , that after your expenses are paid, do you feel you should share with your "partener", the carrier?!? :rolleyes:

Me thinks most take what they consider a profit long before they offer us the load....we get what is left over....
 

OntarioVanMan

Retired Expediter
Owner/Operator
How many of you that are crying/griping about the QC here on EO have brought this subject up with what ever company your signed on with? Doesnt seem your going to change anything here if you dont go to the company your with and gripe to them just saying

Bob...many new sign ups just think it is industry standard charge...many don't think about the little details, they just haven't dug that deep into their research...and their prime concern is the need to make money and get running ASAP...after a while, the little details come more into play and all the woulda, coulda, shoulda's come up....
 

Turtle

Administrator
Staff member
Retired Expediter
How many of you that are crying/griping about the QC here on EO have brought this subject up with what ever company your signed on with? Doesnt seem your going to change anything here if you dont go to the company your with and gripe to them just saying
I have. I looked into buying my own unit and just paying Qualcomm directly for the service. All the carrier needs is the serial number off the QC unit to add you to their system. I asked someone at my carrier, three someones, actually, and got essentially the same response from all of them:

"You can do that, but we'll still charge you $35 a week for Satellite Messaging."

Basically, it came down to a few things. One, they make money off it, and they told me so. Two, it's in the contract with everybody so I have to pay it regardless. Three, if everybody were allowed to own their own QC then the carrier wouldn't have control over them and wouldn't be able to ensure that units in need of repair would be repaired expeditiously.
 

chefdennis

Veteran Expediter
That $35 includes the services that you get also, and the replacement if need be.....so you would still be paying the carrier for the services they provide.

Load 1's new QC also includes the scanner and an optional Truck GPS ....all for $32.50 :D
 
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