Starting a freight center

leonardburton · Dec 16, 2002

Greetings,

I was a driver for Panther II and left when I realized that I wasn't making any money. Currently I am a dispatcher (for semi-trucks) for UPS.

I am in talks with a couple of potential customers on hauling their expedited freight. I just turned down one customer as they wanted me to haul freight at extra cheap rates.

Initially, most freight will be one way. However, as as ETA is set to a destination (at the time of pickup) the dispatcher will be trying to locate backhauls, however I predict this to be hard initially. Also, I'd rather a truck get back to the service center to get a high paying load than to have to wait several hours for a cheap load (within reason).

I have found one customer that has told me that I can haul their overflow freight during Nov and Dec each year. It would be hauling their trailers. They are willing to pay extremely well.

I am posting this as to ask current expediters as to what they would like to see in a company. I am open to any comments. My goal is to create an ethical company.

I am planning on having the drivers to be employees who lease their truck on to the company. What are your thougts on this?

With this said I plan on having a benifit package.

I am planning on being selective with my customers so "cheap" freight can be avoided. Most of the potential customers that I have spoke with claim to be willing to pay a higher price for a higher level of service. I want to haul for shippers who have used the "discount" expediters and realize that they are not getting expedited service. One customer told me that they would pay more for someone who will say "Im sorry sir I can only get you three trucks by 10:00. If you would like I can work on getting you the other three, but it will take some time" instead of sending three trucks at 10:00 and then waiting for him to call to tell him that they dont have three more trucks.

I would appreciate any comments.

joker · Dec 16, 2002

An ethical compant that would pay well sounds good to me.you're got my vote; when you're ready to go let us know. i'm sure you'll have plenty of trucks to sign on. Where is the center gonna be located?

rt trucker · Dec 17, 2002

I agree the Joker....Let us know....you would have lots of drivers I am sure, myself included.

Rt Trucker

leonardburton · Dec 17, 2002

The problem will be that in the early stages the freight will be one way. Even though I plan to proacvtivly search for backhauls I expect it to be a difficult problem in the beginning.

What do you think about this problem? Any thoughts or suggestions? Are you willing to run some one way freight?

What do you think are acceptable escrow withholdings? What do you think are acceptable (other) withholdings?

Thanks,

Leonard

RichM · Dec 18, 2002

My thoughts on this issue is that it is loaded with Red Flags,most companies have established relationships with various expediting companies and are reluctant to change. Start up operations generally involve someone who has a personal relationship with a shipper who is willing to take a chance and use the new carrier on the block. But remember there is never any BACKHAUL. This guy sounds like he is undercutting UPS in his present position.If he will do that to his employer what will he do to you. Ethics are not what they used to be but still count for something. He also sounds somehat naive in asking questions about escrow etc. I am not attacking this person as I have never met him and he may have very good intentions but in this day and age it is hard to succeed against companies such as Fedex CC,Tri State ,Panther ,LEA ,Conway , etc that already have excellent reputations.

leonardburton · Dec 18, 2002

I wouldnt be competing with UPS, or at least directly. UPS is a good company and there is no way one could really compete with UPS. As they move small packages very cheaply.

I do kind of resent that remark that Id be undercutting UPS. But you do say that you are not attacking me so I can take that somewhat lightly. Am I missing something here?

Im just trying to get some feedback about escrow and other items, Like for instance when I was at PantherII they stoped paying in 21 days and went to 15. Also, the insurance deal changed. I am trying to find out what about other companies drivers can't stand.

Rich, Please try to pick the idea apart. I need all the constructive criticism available. If I dont think that I can get the going and sleep at night then I am not going to do it. I have other things to get into where I will be able to sleep at night. I somtimes wonder how some of the owners of some carriers can sleep at night.

geo · Dec 19, 2002

one thing to help out with, when freight is slow is to have paid ad's
on truck like men in black from the movie people or other places
like hotel or summer resort's as they would bay from a low of
$700 dollar's a month to high of 1,000 dollar's a month for a van,
and up to 3,000 month for a c and d units and up to 9,000 dollars amonth for a e unit, i have check this out and if intrested have number of the person to look into this more i was going to do this
but when things changed from roberts to fedex rules change and was not
able to take part in.

also have drivers if they find a lead for a customer they get a cut
of each load if lead pay's out,

also if you are to get goverment load's help's if you list what your
company is made up of how many vet's you have in, how many disable vet's you have , how many in the guard etc, also for every vet you make a job for you may be able to get a tax break for , also women owned or run, there are breaks for, how many of this and that to.
go to libary and check and see if any grants you may be able to get,
there is a book a few of them to look at

also if you belong to a club or other, net work with members to
open door's for you, family i alway write family reuion off as a
business trip as talk shop

Lostmarbles · Dec 20, 2002

Why not just BUY a company with a good track record and build on that?
Everyone thinks it's easy to start a company from scratch until they get into their second orthird year and realize that your doing so well that you have ALL you monies out on credit or your in debt up to your eyebrows. While all along growing at a fast %rate you are out growing your capital supply,and you can't borrow on "Blue Sky".
If you have the money people behind you,you could buy any one of a hundred working companies and put yourself at the top of the ladder.
If you are good at pooling talent then you might have a chance at pooling capital, and THAT's what it takes to succeed in business.
SO GO FOR IT>? Remember OPM= Other Peoples Money!

Life is what happens to you while your busy makeing other plans.
Life is what happens to you while your busy makeing other plans.

teacel · Dec 20, 2002

My question to Leonard is ------ For something as serious as this why would you come to a public forum and expose yourself in the manner that you did?

1st.) It takes a very serious person and someone to belive in what it is they are doing to start and grow a business, any type of business.

2nd.) If you where a driver for any length of time and one of your long terms goals was to start an Expediting Company, or delivery service of any kind, you would have found a way to make money. By your own admission you jumped ship.

3rd.) All the answers you seam to be seeking are right under your nose, the forum current and archived are full of the most valuable information anyone needs, and the best part is you don't even have to ask anyone.

4th.) I will say to you as Rich said to you. I'm not picking on you , and as Rich said I don't know you, But judging from the things you wrote it sounds like you don't know all that much about this industry. Again There is NO such thing as a back haul. In the Expediting business a drivers home is his truck or van for how ever long that driver wants to stay out.

5th.) If you knew anything about this business or the type of people that dominate this business, you would know that loyal dedicated drivers aren't going to work for anyone as an employee.

6th.) You speak of the service center, do you plan on having your customers bring the freight they want you to haul to your service center? How is the freight going to get to the service center?

I could go on and on pointing out the RED FLAGS as again Rich put it. You wanted constructive criticism. Well here is some and it's free.
It sounds like you are dreaming, (I love to dream) The world was built on dreams! Please don't take this wrong, I'm not saying there is anything wrong with dreaming. I do it all the time.

From your very first post, you leave a lot of room for someone with any knowledge of this business to assume that you don't know enough to start and prosper from creating and maintaining a business in this industry.

If you want to start a service center, by all means go for it. Why would you come to an expediters forum and ask about setting up a service center? Wouldn't it be best for you to go right to the horse to get the answers? Most of the drivers in expediting want to deliver the load, grab another one close by and get on down the road. Drivers are free independent people. Most of us want to do our own thing, not work for someone else. As Lostmarbles put it, if you have the money or the backing why not by a business and build from that. Put a business plan together and setup some type of foundation.

Enough said, I think you got the picture. I hope you are a sport and are true to your word. About the constructive criticism that is? Your quote "Please try to pick the idea apart" well here it is. Good Luck.

Sasquatch · Dec 20, 2002

Just jerking any corporate suit is well worth all this talk about starting and draining their corporate livelyhood. You know they are sitting at the club every night laughing at those who sit at truck stops@58%!! Go co-op @15% to each account you acquire on all loads billed to that account!DOWNLINE- One web site cost- all accounts- 15% paid to your account no matter what-LOADED BY REGISTERED CO-OP whom ever! JERK! JERK! AND IF CAN'T GET RID OF THEM- BROKER THEM TO FED EX LOGISTICS!

joker · Dec 21, 2002

HUH?!!!!!

Sasquatch · Dec 21, 2002

DAH, HUH?? What a waste of space! I have ten years of shipper/rec. addresses available for leeds!! X(times) everyone else! One web site=MEMBERSHIP AT COST/PLUS downline com. on loaded billing accounts you bring to web site- plus your loaded mile if you run the load.HELLO ARE WE REACHING?