Trying to figure something out

[ATeam]

What I'm trying to figure out is why so many people lease onto a comapny and depend on that one company to get loads.

It's simple. We make more money leasing our straight truck to our carrier of choice than we would if we got our own authority and booked our own loads.

For us, expedting is about the lifestyle, which is why we are in a straight truck. But it is first about the money and meeting specific financial goals we have set. Given our present truck, work and lifestyle choices, we know of no arrangement beyond our present one that pays more money for the straight-truck work we do. The percentage we pay to our carrier to take care of sales and all of the "back office" items we would have to take care of ourselves if we operated under our own authority is well worth the price.

Even if we were willing to do that sales and "back office" work, and pocket the difference, I have yet to meet or hear about a straight truck owner-operator who operates under his or her own authority and runs a one-truck operation that grosses and nets more revenue than us. The kind of freight one hauls is at least as important as how one comes to haul it. I don't know of a better way to tap into the high-value freight market and serve customers nationwide (seeing the country is one of our lifestyle goals) than by leasing to our present carrier of choice.

If there is a one-truck, straight-truck, own-authority, owner-operator out there that is making more money than we are in a straight truck of any kind, I would dearly love to learn of him or her. Doing so would prompt us to research anew and consider anew our decision to lease our truck to our present carrier and operate under their authority.

 

[ATeam]

I'm currently talking to a company about hauling loads of medical waste for them. It's another dedicated direct shipper deal. I will find out by the end of the month. If I get it I'll have to get a hazmat suit and all that jazz, but it will be more than worth it.

This is part of what makes the own-authority thing unattractive. Say you get the sweet deal exactly as you anticipated. What's to keep a guy like me from learning about the same shipper's needs and stealing the deal away?

Say I drive the same kind of truck you do. I could easily walk into the shipper and say "Your next ten loads are free if you guarantee me the rest of your business for two years at the rate you presently pay." or words to that effect.

Or, I might win the business not by addressing the customer's freight needs but the cash flow needs, by saying something like "If you guarantee me 100 loads at your present rate, you can run any one of them, up to ten, for free at any time.

Fine print in the agreement would protect my interests in all contingencies and assure a profitable operation.

As your competitor, I would not be competing against you truck v. truck. I would compete against you on the basis that I can better meet the shipper's needs.

With our present carrier, that kind of sales effort and cutthroat competition is managed by others while Diane and I sit and wait for the beep and make productive use of our non-freight-hauling time.

As stated by Turtle above, people have different business models because people are different. The head-on sales competiton (not just price competition) that turns some people off may be the very thing that others enjoy the most about the business.

If I had my own authority, the happy and clever hunters would be the ones I would worry about most. While I am driving my truck away from the shipper, I'd know that eager and motivated hunters are walking in to capture my business.

I have seen this happen at the loading docks we serve while we load freight. Sales people from other companies walk in and set up free lunches for dock workers and the shipping and receiving department. I worry about it less because our carrier's sales staff has good hunters too. The good freight we haul does not get on our truck by itself or by our efforts alone.

 

[OntarioVanMan]

Got your point Phil... Twice as a matter of fact...

You like to wait for the beep! As so do we....I seen what these independents have to go thru to get a load...way too much time invested at least in these times...I can do better waiting for the beep and not stress ourselves out wondering if we'll win the load. We have enough stress now....

 

[greg334]

Looking at things that improve your personal satisfaction level, steada look'in at things that improve your position.

I think this says a lot, more so then two chapters of the gospel has said. It is not always about the money, is it?

Look it is really simple for a lot of people, they don't want to hassle with the finer things in authority life. logs, inspections, paper work can be a pain in the a** and having a company who says "we will give you 70 cents a mile plus 15 cents a mile for deadhead" means more than "I can run the business the way I want to" and dealing with a headache.

 

[OntarioVanMan]

Nooo..
It is do I really need or want the headache in my life.?

Can I live without the headache?

Am I happy with out the headache in my life?

Is the the way I want to live my life?

Am I whinning about my choice?

NO

Am I making what I need?

Yes