This is really a pretty honest question here, not one of my rhetorical things to make a point like I have been known to do in the past. We have some recruiting ads running and I've been hit with some questions I had never really considered in the past, so I'd like to see the kinds of things you would ask a recruiter if you were looking at a new company and what some of the things are that you're looking for in a carrier. Here are a few of the topics I can think of off hand.
1. Base plates. What do you expect here? I know a lot of larger carriers offer to handle this for the owner, but it's a pretty good up front expense, depending on the size of the truck, and that can be a sizable outlay for a small company.
2. Insurance. Do you expect the carrier to foot the bill for the liability and cargo or do you expect to have it deducted from your settlements? That can be another large expense for a carrier. With the straight trucks it's not much of a deal because they're going to bring in more than enough revenue to cover it, but with vans it can be kind of iffy the way van freight has been lately.
3. Fuel advances. Another tricky thing for a small carrier. Our factoring company used to do advances on booked loads, but recently changed their policy and doesn't want to do them anymore. Do you have an expectation that the carrier should advance you a certain percentage of the load up front for fuel, or do you figure it's your responsibility as an owner to have enough money to at least run the next load?
Those are the main topics I get asked about on a regular basis from people thinking about signing on, so I'd like to get a good handle on what the expectation is out there regarding those areas, and any others you might think of. Those are all things that are easier for a larger carrier to handle because of the amount of money involved and because there usually involves an expenditure before any money is collected. With larger companies promising the moon sometimes, a smaller carrier like us has to find a way to compete when it comes to recruiting, but I stop at being as blatantly dishonest as some recruiters are. I don't want to blow smoke when I'm talking with someone, because if you lie to a potential recruit, it's only going to come back on you in the end anyway.
So I guess the point is this. Besides the amount and frequency of pay, what things are important when someone is considering a company to lease to? Are you looking for personal attention, someone to take care of the base plate and insurance, a regularly available fuel advance, or does it just boil down to keeping busy and making money? It seems a lot of the people I've spoken to recently are more concerned with what "perks" are available than the kind of miles and rates they can expect. What do y'all think?
Hi Charles, being a new owner on with your company everything I see so far is great. I've been in trucking for over 35 years so I'll give you my thoughts.
The first and most important thing is a company that REALLY WORKS to keep my trucks rolling at a decent rate. Good communication between dispatch and the driver is key there. Trucking is always a balance between good and bad, the trick is keep the average up to where it is profitable for all concerned, the company, the truck owner, and the driver.
I'll address your other questions.
Base Plates, I'd tend to stay away from a carrier who requires me to buy their base plates, be it a tractor, straight truck, or van. When I buy my base plates, I pick my state, I control my costs, and if the need to leave comes they are mine. While some may say it is nice to have the carrier help out with the costs through deductions, I think the end result is hard feeling before it's done.
Insurance, I prefer to buy my own. I hire good drivers and have a good saftey record and cargo claim record. As such I get a good rate. Being part of a fleet coverage makes me pay for others mistakes.
Fuel Advances, They are more work than they are worth. If you want contractors that will be in the business for a while they need to have operating capitol. The guys who need fuel money to do the next load are not ready for the next big repair job either. With that said I do expect to be paid in a quick and timely manner when my job is competed. The only times I've wanted fuel money was when I hauled a load for someone who I thought might not pay me for the load, at least I'd have costs up front. These are not the type of broker or carrier I want any relationship with in the first place.
The bottom line is what type of contractor you are wanting to work with. While everyone has to start somewhere, being short on capitol is the best way to go out of business or not be able to run one sucessfully. If you NEED contractors, then may need to offer all these helping hands, but if you a class operation, then you will find sucessful operators will be calling you.
That's my thoughts for what they are worth.