What have we done?

[bttllc]

My husband lost his job so we took the only thing we had left, credit, and bought a brand new 2007 dodge sprinter. My husband had a friend that told him he could give him enough work to keep him busy. I should have asked what exactly is busy. Now I need to learn how to pay for this thing and make enough money to pay the rent on our house. I have my own authority and I am insured. I am ready to roll and I have no where to go.

Are there some good load boards for sprinters, or should I sign on with one of these companies. I don't even know if one of these companies would take us we have only been in business for 5 months and I have only had my authority for a week.

Help what do I do next.

 

[LDB]

My reply is as much for anyone coming along after you as for you. It isn't meant to pick on you but it is going to be blunt to hopefully save someone else.

Your topic asks what have you done. It appears you scratched the surface as far as research into expediting and that scratch seemed to uncover something favorable. I don't know who your husband's friend is, what company he represents, or what sort of work he suggested he could get you.

I do know there is a glut of vans with every company I'm aware of. I know that reading back one year in the general, newbies and recruiter forums here on EO would give someone a wealth of information on the various companies and their situation re: vans.

I would suggest you discuss your situation with the recruiters who volunteer here on the forum. To the best of my knowledge, the recruiters who moderate that forum here are honest about what they can offer without exaggerating nearly as much as some do who aren't affiliated with the forums.

When you are talking to them be sure to discuss finding loads on your own. Policies vary greatly. With Panther, you can run stuff you find on your own. When you do, you negotiate everything with the shipper and then notify Panther. Panther gets 15% and you get the rest. Other companies can take as much as 38%, thereby making most loads not worthwhile at only 62% when they might be at 85%.

You'll want to run the carriers jobs as much as possible but considering your situation any downtime you have would be well spent in prospecting for customers for your carrier as well as loads to keep you moving. Some carriers pay finders fees for new customers.

You should look to dhalltoyo for input. He's a very knowledgeable van O/O. Good luck to you.

 

[Paul56]

There are some careers that people can just jump into with little consequence... pumping gas, flipping burgers, working in retail, etc. If it doesn't work out well they can just move on to different pastures where they can achieve some harmony.

Then there are other careers that take a few years education to get into and so before entering into that long academic journey there has been a lot of soul searching and research... not to mention that one gains some insight into the choice they have made long before actually starting their first position... even though after starting that first position they sometimes realize just how much they don't know despite years of education.

And then there is trucking where so often folks jump in without learning much beforehand. I've long forgotten what the survival statistics are for new people entering the industry... but seems to me they were not good. Unfortunately, you've jumped into the deepest end and are now likely feeling the pressure on a few fronts. You need to get very busy and load yourselves up with as much information about what you have jumped into as quickly as possible. You really should not have your own authority after only five months in. It just becomes far too overwhelming for the new person what with looking after the vehicle, trip planning, long hours driving that you may not be used to and saddled on top of that and more you have the additional burden of finding your own loads and relying on a friend who promised to keep you busy but isn't. The friend did you no favours by not defining what "busy" actually meant.

-Don't burn bridges and by all means continue to accept loads provided by the friend to get you over the hump here, but do break away from this situation asap.
-Drop the authority part.
-Cut your expenses to the bone and put together a financial plan.
-Start looking immediately to get signed on somewhere with or without the Sprinter. If you can find a reputable fleet owner who has a truck to put you in then consider selling the Sprinter and getting out of debt.
-Start getting educated... there is a lot of reading right here and folks right here that can help you with specifics.
-Develop two plans: Plan A for how you are going to make this work and plan B on how you will bail out and move on should plan A not work.

It isn't good to be doing all this under pressure, but unfortunately that is how it will have to be done.

 

[TRUCKMNGR]

BTTLLC, Keep your chin up first of all. I see this post at the historically slowest time of the year in expedite. I have also read the other input from other members and must agree myself. I have talked to a couple of people lately who are in your type of situation and have bit off more than they can chew. You are still learning, if you are getting into a position financially you really need to concentrate on driving and "learning" the business from experience.
My company for example is a decent size player in the expedite industry but I do nto have a huge Sprinter fleet and truthfully had not even been looking for more before Christmas so I could keep what I have busy. As far as the 5 months experience I am not sure about the criteria of other expedite carriers but in a cargo van I can work with that.
Please, you have received a good bit of information here from others in the industry and I figured I would add some hopefully positive comments from a recruiter stand point but you are just learning, keep your chin up, heed to advice and you will be fine. Right now until about March is just a hard time industry wide but like myself there are companies who would love to talk to you should you wish to let them teach you the ropes of this expedite world. Feel free to drop me a note anytime if you would like any more info in the Company and Careers section. Best of luck to ya!!!

 

[fastrod]

You can make this work if you try. Keep your authority and only look at signing on to a carrier as a last resort. Use the work you are getting off your friend as a base for your business and build on this. Go out and find your own customers, this is not as hard as it sounds. I run a van under my own authority and have found it is not nearly as hard as most would want you to believe it is.

 

[bttllc]

Thanks all of you that have posted a reply. Yes I have bitten off more than I can chew, but I can't spit it out now, I have to make this work. My husband is on the road and I sit home trying to find loads to keep him moving and tend to our five children. When they grow and go this will probally be our retirement. Traveling the country, expediting. lol. fastrod how and where do you get these customers. I doesn't seem that easy from my point of view.

 

[LDB]

At this point in your career I have to disagree with the advice to not consider signing on with a carrier absent a narrow set of circumstances. In many cases independents such as yourselves and presumably the friend have few customers, comparatively speaking at least, resulting in one way runs. That 50% minimum deadhead back home is a killer. Working with a carrier should result in reduced deadhead since they should have a much larger customer base and be able to get you loaded again somewhere closer to the delivery point. Now if your friend or you have found a fairly regular customer that runs you loaded both ways you have a different decision matrix to follow.

Getting customers is not easy at all. You are asking them to work with you instead of a company with national and in some cases global name recognition. That doesn't mean it can't be done. It will just be tough. Your husband should be talking to the shipping manager at every company he delivers to. He should be well groomed and well dressed. That doesn't mean a suit and tie, but clean Dockers or similar and a clean button down shirt, clean shaven, hair washed and combed, no food, drinks or smokes, in other words he shouldn't look like the stereotype of drivers. The van should be as clean as possible and the inside should be neat and organized. Once he's completed his delivery and talked to that company he should be scouting the area for other companies to talk to. He obviously needs to stay well rested in case a long run comes up but any spare time should be spent prospecting. You can get a starter supply of business cards for just the cost of shipping at vistaprint.com online. I believe it's about $6.95 for 250 cards. Keep reading and learning from these forums, mostly at night when you can't be prospecting customers as much, and keep good notes of all you learn, especially from your mistakes.

 

[RLENT]

In many cases independents such as yourselves and presumably the friend have few customers, comparatively speaking at least, resulting in one way runs. That 50% minimum deadhead back home is a killer.

While this is generally true - particularly if you leased to a carrier - it is less true perhaps, if you have your own authority - since you are getting a 100% of the revenue - as opposed to 60% or thereabouts or a per mile rate that represents less than the total invoice for each haul.

I believe this is the model "fastrod" follows - he gets a good enough rate - and all of it - so that he can afford to deadhead 50% if need be. (Correct me if I'm wrong here Rod)

Working with a carrier should result in reduced deadhead since they should have a much larger customer base and be able to get you loaded again somewhere closer to the delivery point.

That is certainly true - however it is possible to get LTL freight off the load boards to help cover the cost (and maybe put a few bucks in the pocket besides) of getting back to your home area where all your primary customers are.

 

[fastrod]

You are right the rate I get is enough to cover 50% deadhead easily. As far as finding customers I work a 75 mile radius of my home. Go to any business that you think may need your service. You really only need 5 or 6 good customers to keep a single van operation going.

 

[RichM]

Yeah but what is your response when one of your good customers call you with a ASAP pick up and you are 300 miles away. How do you maintain these customers if you canot always respond to their needs.

 

[bttllc]

That is a great question I was wondering that myself. Do I than find another exoediter to take that load for me so that my customers don't think that I am to small to handle their work. I was thinking that maybe the answer to that is to get a BROKERS authority so that you can in turn sell that load. What do you think of that?

 

[fastrod]

I have had that happen a couple of times and I was honest and told them I could not cover there load. They found another company to handle it on those times but I still remained there first call for other loads. I let these companys know that I am a one van operation and it does not seem to bother them.

 

[arkjarhead]

Fastrod,
You let them know that on the front end though right? The reason I ask that is because if you try to lie a little and say you have a few trucks leased on our something the truth will come out sooner or later. Not trying to call you liar. It's like they say it all comes out in the wash. If you are up front with them about it and they still choose to use you then they should understand.

 

[x06col]

Lets not jump right in there and condem him to failure. After all, he CAN haul anything, from anywhere, to anywhere he chooses (depending on type of authority). That folks, is the doorway to opportunity. Those of you that are encouraging him to "join the herd" are in fact herders, and, misery truly must like company.

Do any of you really think that Mr. fedex, or Mr. ups got to where they are, by following the herd??

Getting loads covered that you cannot handle, is not that big of mistery folks. All you have to do is associate yourself with people you can trust (ethicaly and ability).

I can give you some suggestions, but I won't type em. PM me if you'd like.

 

[arkjarhead]

I guess the point I was trying to make is I feel pretty sure that Fastrod let his customers know up front that he was a one rig outfit. Some people don't like the faceless companies and sitting on hold for 30 minutes to get anything done with their carrier. I'm sure if I was one of Fastrod's customers I could call the number he gives me and go straight to him. Not through 10 different people before I finally get in touch of who I need to speak with. That saves alot of hassel. What I'm saying is bigger is not always better. Some companies get so big they seem not to care about the small account anymore because they have these big ones. Well that small guy feels important to himself and a small carrier can make him feel important where the bug guys won't bother alot of times. When people call Fastrod Express they know who they are talking to.

 

[x06col]

Ark, why do you feel it is so imperative that he inform the customer he is a one horse outfit? Fact of the matter is, if the freight gets moved well---nobody cares. If you think for a second, that even the largest among us don't have to inform a customer "we can't cover your freight"?? You shouldn't.

 

[Paul56]

Lets not jump right in there and condem him to failure. After all, he CAN haul anything, from anywhere, to anywhere he chooses (depending on type of authority). That folks, is the doorway to opportunity. Those of you that are encouraging him to "join the herd" are in fact herders, and, misery truly must like company.

Do any of you really think that Mr. fedex, or Mr. ups got to where they are, by following the herd??

Getting loads covered that you cannot handle, is not that big of mistery folks. All you have to do is associate yourself with people you can trust (ethicaly and ability).

I can give you some suggestions, but I won't type em. PM me if you'd like.

We have our own authority so far be it for me to discourage anyone else from from doing the same; however, I cannot and will not recommend that someone *new* to the industry start out with their own authority nor as an owner/operator either.

 

[Paul56]

Ark, why do you feel it is so imperative that he inform the customer he is a one horse outfit? Fact of the matter is, if the freight gets moved well---nobody cares. If you think for a second, that even the largest among us don't have to inform a customer "we can't cover your freight"?? You shouldn't.

I have always found the open and honest policy with customers works well simply because customers *do* care.

 

[x06col]

I agree completely Paul, with the disclosure part, that's not the point with me. My point is simply I will do all I can to move my customers freight, and the truck won't ALWAYS read FOSTER on the door. That is the point. And there is no problem. It is kinda amazing tho to me that most folks that don't really understand fully, Like arkjarhead, feels that a small organization has that tuff a time thriving in this business. Maybe it's perceptions, maybe it's something they've been force fed, dunno.

As far as the original poster, I believe he typed "I can't spit it out now" so....... seems to me the boy has to start chewing. And probably chew quick and hard. I most cases it takes an extended period of time for ANY business start up to truly show a profit.

 

[RLENT]

Nothing the matter with being honest .... in my opinion it's the only way to operate ..... but as a matter of public relations pushing the fact that you are small and have limited resources isn't the thing you ought be sticking under the customer's nose. It just isn't good PR - you are far better of pushing what you can do - rather than what you can't.

As the col says, if you can partner with others and can provide service then the customer will remember that they called you - and you handled it - even if you didn't have one of your own trucks available.

In my (limited) experience it seems the customer is less focused on the name on the side of the truck - and much more concerned about seeing that a specific load gets to where it needs to go.

With my carrier I have hauled loads for a variety of other carriers - including ones which are not members of the alliance. I have never heard a customer object - all they want was to see that the load got to where it needed to go.