easyrider2697
Expert Expediter
How many people are taking part of this program...is the cost wort it ? What do you feel the pros and cons of this program are?
Quick pay program
- Thread starter easyrider2697
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Tennesseahawk
Veteran Expediter
For those of us who don't have a pussy cat on our truck, what does this program entail?
Quickpay is a program that pays the following Friday for all paperwork received during the current week. In other words, any paperwork received by the company this week through Friday ~16:00 would pay next Friday rather than the normal 15 day cycle. The cost is a ridiculously high 3% of the gross for a 10 day float. That would be usurious if done by a bank. If the rate were 0.3% maximum it would be reasonable but as is it is about 10 times too high.
greg334
Veteran Expediter
Sorry Leo for the criticism, Panther seems to be reaching for every penny that they can from every thing I read.
I don't understand the reason for even charging a penny for the service, even though they seems to be a benefit for the owner. This actually looks like factoring to me or did I miss something here?
I think after hearing all about the large amount of money behind them, they still think small and don't know how to 'give' to make more money. How much does it really cost them to do this as a policy instead of a service?
I don't understand the reason for even charging a penny for the service, even though they seems to be a benefit for the owner. This actually looks like factoring to me or did I miss something here?
I think after hearing all about the large amount of money behind them, they still think small and don't know how to 'give' to make more money. How much does it really cost them to do this as a policy instead of a service?
easyrider2697
Expert Expediter
Just to add a twist to this...
At one point last year didn't Tri-State start charging 3% to recieve an advance when the load was completed? I remember talking to a some office people there and this was starting last year sometime....think there was a thread also about it( I feel quite sure someone will dig it up if so). If so how is that treating them now?
At one point last year didn't Tri-State start charging 3% to recieve an advance when the load was completed? I remember talking to a some office people there and this was starting last year sometime....think there was a thread also about it( I feel quite sure someone will dig it up if so). If so how is that treating them now?
Tennesseahawk
Veteran Expediter
Factoring has a different use tho. The factoring company takes care of collecting from brokers. They also pay right away, as compared to 30-60 day wait normally attributed to brokers. I can see paying a factoring company 3-5%... not Panther if they knock a whoppin 7 days off your wait.
For the most part by the time Panther pays they have been paid by the customer. That's the reason for the 15 day delay. This does come out of their money ahead of being paid by the customer. If they were to do it fleet wide it might require them to float money at the bank, I don't know. If my brain and my guzintas are correct, both big ifs, it would cost them around 0.3% for that week of float. Based on my belief they shouldn't be charging us more than cost pass through for this OR QUALCOM FEES, I believe we should pay around 0.3% or whatever the actual cost is not 3%. If I were to go to my bank and arrange the same 7-10 day float it would cost me the 1/3 of a percent of so and there's no reason I should get it free from Panther if I'd pay for it elsewhere. There's just no reason for my company, that's supposed to be my "partner", to skin me on it.
greg334
Veteran Expediter
Well see here is the thing Leo, they are acting small when they think this way. It is not that they are a mom and pop shop where the cash flow is small and there are problems with things like this but rather a ‘big’ corporation with big pockets.
If they need to float a loan to cover expenses, then they really need to examine their finances and get rid of some management. You have 1500 trucks (let's use that for a moment) and they do somewhere around 3300 a week, that is around $5M a week in payouts, if they can't cover this with cash in the bank then what can they do.
I wonder how many actually take advantage of the program?
I would guess, just a guess that 8 to 10% of the entire fleet at most, so if it is 10% of 1500 that is 150 trucks and that works out using the average $14,850 a week that they charge the contractor for a payout of $496K, not a bad return on investment. I think they are treating it like a loan tell you the truth.
If they treated the thing as a payroll, they would not think this way and solve a lot of problems for all but they are stuck on this concept that they are a small expediting company from all I have read. I mean like Falligator being paid dry run pay, they should have paid him detention pay and gone back to the customer and charged them or eat the cost without thinking. Then this run should have been flagged by the supervisors and discussed with sales to prevent it from happening again or making sure that there is a policy covering it.
I think many of the operational problems is caused by paying the dispatchers and management of them hourly (salary) without incentives and not having experience in either business or owning a truck within the staff.