How much does a dispatcher have to Invest

[EASYTRADER]

I'm curious, I had to cough up 108k plus to get into the expedite business.

Does anyone know how much it costs to be a "Director of Operations" or a "Dispatcher"?

I suspect the answer to that question is NOTHING.

That being the case, who is more likely to care if the carrier succeeds?

Thats right the person who coughed up the money.

So it seems to me that before we come up with great ideas to improve response time we might just run it by some folks like ME who have our own cash on the line and are the ones who have to be driven crazy by multiple load offers which even if we accept we may have to go through 3 or four before we actually get loaded.

A better way to improve response time would be to have a set rate for all miles plus a FSC. So there would be less turn downs and no more "CHEAP LOADS".

Then if you really wanted to innovate - Some folks turn down all Canada loads, well how about flagging their truck "NOT AVAILABLE FOR CANADA"

Another popular turn down reason is "NO NYC" another truck flag

Anyway their are probably less than four popular reasons why loads are TD'd other than simply not enough money.

Personally I only turn down loads because of pay, but whatever.

Then when a load came up FECC would know if they had a truck available or not.

 

[kwexpress]

some people have more money than brains thats why they become carriers.
and then they hope to hire brains to run things for them.No matter how many brains they gather they always seem to have a few damaged ones.

 

[greg334]

What?

You just learning this?

You need to look beyond the rhetoric and propaganda to see the bigger picture.

Politics and big business are pretty much the same thing.

FedEx does not do things unless it helps them, not the contractor or the customer. They have seen what is going on in the market and are making changes to prop up their bottom line - I can't blame them.

I got a lot more to say but I am going to shut up now........

 

[terryandrene]

Easytrader, what would you recommend to FedEx CC to be the minimum flat rate per mile, plus FSC, they would need to pay to maintain an appropriate sized fleet of D trucks? Should the non NYC or non-Canada trucks recieve the same pay per mile?

 

[Jefferson3000]

The dispatcher is an employee of a business owner. You however, are not an employee with a truck investment, you are another business owner. If you'll think of your carrier as your client, you'll be able to overlook the idiocy of some of the underlings, and see a bigger picture.

That being said, you have a contract that you signed, with certain terms included. Your customers will always have a bit of an upper hand, in that you depend on them to make money. They can and probably will change some lesser terms as it suits them and their way of doing business. The upper hand that you have however, is that they cannot serve their customers without people like you. You have to figure out how to make your customer happy while still maintaining a profit for yourself.

 

[TeamCaffee]

I know that at many times our weekly income is more then the dispatchers monthly income. We have more risk on the line then they do but we choose to buy a truck and be out here instead of in a cubicle.
If we get tired of the risk out here and the hassle we can always go back to a 9 to 5 job and sit at a cubicle but who wants to do that?

 

[nightcreacher]

I'm curious, I had to cough up 108k plus to get into the expedite business.

Does anyone know how much it costs to be a "Director of Operations" or a "Dispatcher"?

I suspect the answer to that question is NOTHING.

That being the case, who is more likely to care if the carrier succeeds?

Thats right the person who coughed up the money.

So it seems to me that before we come up with great ideas to improve response time we might just run it by some folks like ME who have our own cash on the line and are the ones who have to be driven crazy by multiple load offers which even if we accept we may have to go through 3 or four before we actually get loaded.

A better way to improve response time would be to have a set rate for all miles plus a FSC. So there would be less turn downs and no more "CHEAP LOADS".

Then if you really wanted to innovate - Some folks turn down all Canada loads, well how about flagging their truck "NOT AVAILABLE FOR CANADA"

Another popular turn down reason is "NO NYC" another truck flag

Anyway their are probably less than four popular reasons why loads are TD'd other than simply not enough money.

Personally I only turn down loads because of pay, but whatever.

Then when a load came up FECC would know if they had a truck available or not.

In case you didn't know,FECC already tried the flat rate pay,they thought that would get the laods covered quicker,but there were more turn downs,and response time was very slow.If you received a flat rate plus fsc,and you new the company was getting 3 times as much,woud you be happy then.Easyrider,i have a great idea since your so unhappy with FedEx CC, Panther is FLAT RATE

 

[piper1]

Arguing with a dispatcher is the same as playing poker with your cards turned up,

YOU AIN'T EVER GONNA WIN!

 

[arrbsthw]

Yes you are right..never argue with your dispatcher as they are the ones you
have to get your loads from. You might think it,, but do not say it *LOL*

 

[fastman_1]

Myself I invested 29 years in the Tranpotation Field as a Owner/Operator, I ran every size unit at one time or Another before I got to drive This Desk I got.So I know How hard your Job is. But do you know how hard our Job is??

 

[x06col]

108K? I'd sell you a Company and two trucks, for less than that. An yer stuck being a contractor.

 

[EASYTRADER]

One sure way to kill inovation is to assume that a suggestion is a complaint. So im glad I don't work for a company nightcreather owns. His answer is always "Go Work For Panther".

Well if I find out he is appointed ceo of FECC I will go work for panther.

as for mileage pay I would be willing to average a little less per mile than I do now. The cut in revenue would be worth it for more certainty. Im talking about a flat rate for all IN SERVICE miles

special loads requiring more work should have a spiff attached on top of the mileage as an incentive.
200 bucks for canada or NYC or whatever the load is they are having trouble covering.

The simple fact of economics is more money cures a lot of ills.

As for the flat rate program causing more turn downs that may be so but without taking a closer look at the loads that were turned down you can't establish a connection.

Most likely it was still the same kinds of loads being td'd as before.

The problem that flat rate pay cures is loads being TDd because of deadhead. To delivery and then to staging after ward.

Canada runs need to be incentivised another way.

Don't get me wrong; I run my business tight enough that I make plenty of money.

All im saying is sending undesiable loads to three trucks at a time isn't going to improve service much more. The example I gave in the other thread proves it.

The way to get undesrable loads covered quickly is to make them DESIRABLE.

 

[ATeam]

<snip>
The simple fact of economics is more money cures a lot of ills.
<snip>
The way to get undesrable loads covered quickly is to make them DESIRABLE.

I agree that the acceptance rate would improve on low paying loads if those loads were converted into better paying loads. But I do not agree that a flat-rate system is needed to make that happen. A simple change of price is all it would take.

Let's keep our eye on the ball here. It's not about who cares about the carrier more. It's about the money. It's always about the money. Even if you are in expedtiting for the camping trip, it's still about the money; because if you are not making money, you will not be in the business for long (hobby expediters, people with additional sources of income, and the independently wealthy excpeted).

If FedEx Custom Critical went to the flat rate system you proposed, Diane and I would move to a carrier that does not have a flat rate system. We believe the opportunities would be better there. We did not get into this business to achieve more certainty. We got in it to make money and achieve other goals. There is no way we would trade a lower rate per mile to have greater certainty. The only certainty a lower rate per mile would provide is lower profits for us.

EASYTRADER said, " The problem that flat rate pay cures is loads being TDd because of deadhead. To delivery and then to staging after ward."

We cure the deadhead problem with every load offer we consider. Add the deadhead miles to the loaded miles, divide that total into the total pay offered for the load. If the load pays enough, accept it. If it does not pay enough, decline it. If staging after the delivery is an issue, add the staging miles to the deadhead miles.

For example. If a load runs 200 miles deadhead and 500 miles loaded, the total is 700 miles. If, with all money combined (fuel surcharge, accessorial pay, normal tarriff, any discounts that apply, etc.), the load pays $900, divide 700 miles into $900 to determine your total pay per mile. In this case, it is $1.29 per mile. If you can run profitably at that amount, take the load. If not, turn it down.

Again, it's about the money. It's not about solving the deadhead problem. It is not about staging. It's about the money. It's always about the money.

 

[pelicn]

We cure the deadhead problem with every load offer we consider. Add the deadhead miles to the loaded miles, divide that total into the total pay offered for the load. If the load pays enough, accept it. If it does not pay enough, decline it. If staging after the delivery is an issue, add the staging miles to the deadhead miles.

That's what we do. We have a minimum cpm and if the load is lower than that, we decline.

 

[nightcreacher]

One sure way to kill inovation is to assume that a suggestion is a complaint. So im glad I don't work for a company nightcreather owns. His answer is always "Go Work For Panther".

Well if I find out he is appointed ceo of FECC I will go work for panther.

as for mileage pay I would be willing to average a little less per mile than I do now. The cut in revenue would be worth it for more certainty. Im talking about a flat rate for all IN SERVICE miles

special loads requiring more work should have a spiff attached on top of the mileage as an incentive.
200 bucks for canada or NYC or whatever the load is they are having trouble covering.

The simple fact of economics is more money cures a lot of ills.

As for the flat rate program causing more turn downs that may be so but without taking a closer look at the loads that were turned down you can't establish a connection.

Most likely it was still the same kinds of loads being td'd as before.

The problem that flat rate pay cures is loads being TDd because of deadhead. To delivery and then to staging after ward.

Canada runs need to be incentivised another way.

Don't get me wrong; I run my business tight enough that I make plenty of money.

All im saying is sending undesiable loads to three trucks at a time isn't going to improve service much more. The example I gave in the other thread proves it.

The way to get undesrable loads covered quickly is to make them DESIRABLE.

Easytrader,you are the most negative person on EO.You complain more than help anyone.If you really think a flat rate is the answer,guess you have never worked on a flat rate contract.When you signed a contract,didnt you read it? Do you think all these trucking companies are in business just to satisfy us.They are in business to make money for themselves and stock holders, we just happen to be their partners in business.And for your information,i have been on flat rate contracts,ive had trucks on with other companies besides FECC,I stay here as its the place for bigger profits,And i dont have to negotiate pay to get them.

 

[davekc]

I am confused by the statement of "I never have to negotiate"
With just about every post here, there is mention of getting cheap load offers. Some would interpret that as favoritism?
Should also be noted that some carriers are flat rate on everything, and some are flat rate on miles with varying FSC's.

 

[Suds43]

Easytrader, what would you recommend to FedEx CC to be the minimum flat rate per mile, plus FSC, they would need to pay to maintain an appropriate sized fleet of D trucks? Should the non NYC or non-Canada trucks recieve the same pay per mile?

Terry, are you saying that just because someone doesn't want to go into Canada or NYC, that they should be paid less for all miles no matter where they run???
I flagged myself "no canada, no nyc" simply because I didn't want/need the hassle. NY is way to expensive to run anyways..........tolls, truck expenses/fuel, finding somewhere to stay after unloading, no idle laws, etc.........traffic, traffic, traffic......it goes on and on. Just because I don't choose to go to either of these places doesn't mean there are less expenses to operating the truck or punishing someone by paying them less.
Panther does that..........go into canada, get $1.30/mi-all miles........tell them "no canada" and your penalized by .15/mi. But, they don't tell anyone that UNTIL they have you in orientation..........that's why I'll never drive for panther.........
JMO

 

[nightcreacher]

I am confused by the statement of "I never have to negotiate"
With just about every post here, there is mention of getting cheap load offers. Some would interpret that as favoritism?
Should also be noted that some carriers are flat rate on everything, and some are flat rate on miles with varying FSC's.

Dave, not favoritism,If the 1st offer doesnt work,the second wont either.Our fsc is constant ,we do have many customer discounts as you know,and my acceptance could be better,thats not favoratism

 

[davekc]

I follow you. It was confusing the way it was wrote. No problem.

 

[ATeam]

Why, DaveKC, are you injecting the notion of favoritism into this thread?

Well, since you did, let me say that FedEx Custom Critical is the last place I would worry about favoritism. I know of cases where dispatchers have been fired for favors. The policies against favoritism are clear and the will to enforce them is also demonstrated.

That stands in sharp contrast to carriers where dispatchers/agents are allowed to operate their own fleets and favoritism in dispatch behavior is more the norm than the exception. That is not to say favoritism is considered a bad thing at such carriers. It is just understood to be part of the game.

But if a contractor dislikes favoritism, choosing a carrier where favoritism is clearly and demonstrably prohibited is the way to go.