ways to make money in expediting

LDB

Veteran Expediter
Retired Expediter
There's a joke thread going on about ways to make money at a particular company. It's decent tongue in cheek humor. I thought about it more and realized we need a serious thread for those looking into the business or new in the business on things to do to succeed and make money. I'm going with my same five thoughts, as follows.

1. Accept 73% of the loads offered. Accept too many and you'll be running jobs that lose money. Accept too few and you'll be leaving money on the table.

2. Be available a minimum of 82%. That gives you 66 days at home or a little over 9 weeks scattered through the year. If you are in this as a career you have to be available to make money.

3. Be courteous and friendly on the phone no matter how stupid the dispatcher is. They will be. Quite often. Regardless of the fact they'll be dumber than dirt and totally in the wrong, you'll still be the one who loses if you blow up at them. They'll remember that and hold it against you for as long as they are there.

4. Be courteous and polite to the shipper and consignee no matter how stupid they are. Some of them will be equally stupid as your dispatchers. Remember there is no money to the truck if there's no freight on the truck. Shippers and cons have been known to call and tell a company to never send truck abc123 again. They've also been known to ask for a specific truck if available. Your bank account will do much better if you are in the latter group.

5. Maintain your equipment in top condition. This ties in with being asked for in number 4. It also goes with the money rolls in when the wheels roll down the road. Trucks in good condition do that. Trucks that aren't maintained are in the shop costing money not on the road making money. Don't neglect appearance and consider yourself as part of the equipment. A clean professional appearance of truck and operators is the first thing they'll see and one of the main things they'll remember.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
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Support the entire Constitution, not just the parts you like.
 

RichM

Veteran Expediter
Charter Member
Leo nailed it,if you can't do those 5 things you don't belong in this business.
 

ATeam

Senior Member
Retired Expediter
How many Open Forum members have a 73% load acceptance percentage (or better) and an 85% availability percentage (or better)?

For those who may not know, acceptance means the percentage of loads you accept of the number of loads offered. For example, if 100 loads are offered to you in a given time period, and you accept 70 of them, your acceptance percentage would be 70%.

Availability means the percentage of time you and your truck are in service (available to haul freight). Most expedite drivers place themselves in or out of service at will by notifying dispatch. If you take 36.5 days off in a 365 day year, or 10% of the days, your availability percentage would be 90%.

To answer my own question, Diane and I did not rise to Leo's standard, though, we had what we consider to be a successful year. We're home for the holidays now (out of service, unavailable). At year end, our 2007 acceptance percentage will be 75.0%. Availability will be about the same.

Newbies should note that 70% acceptance combined with 70% availability is considered award-winning performance by at least one major expedite carrier.
 

Tennesseahawk

Veteran Expediter
Can't agree with 1 or 2. If you get offered crap, then you'll make crap if you take it. And some companies offer more crap than others. If you're a team, and you're expected to take solo crap, then both of you will make crap if you accept.

As for 2, yes... you need to be out to make money. But if you're married, you better take care of what you leave behind, or you might be the richest man in divorce court. Which reminds me, I need to get home! :7

-A bore is a person who opens his mouth and puts his feats in it. - Henry Ford
 

fastrod

Expert Expediter
1. Acceptance rate is 98% and I always make money on every run because I am the one that sets the rate.

2. I am available 98% of the time. Same as no. 1 because sometimes I am already out on a run and can not take a another one. I return home after each run because all my runs come from my home area. This means off time is spent at home because I have a life outside of expediting.

3. I do not deal with dispatchers.

4. Agree completely.

5. I do my own maintaince and for an 18 year old van it runs fine. The two things a company will remember over everything else is on time delivery and price.
 

OntarioVanMan

Retired Expediter
Owner/Operator
Anne...not to worry cause your one of them honest,sweet, true to heart recruiters....right?

or do you dispatch thru lunch break????
 

TeamCaffee

Administrator
Staff member
Owner/Operator
As a team we look at each load individually and what the load pays. Doesn't make any difference if the load is solo or team but what will the load do for us. Another item we do not pay any attention to is if the load is a B, C or D rate. If the load pays, is going to a better freight area then the load is considered. At this time of the year I also watch the weather and try to keep us out of an area where a bad storm in approaching. We are driving what makes our income and we do not want anything to happen to our truck and that is the number one priority.

Great Post Leo!
 

AnneM

Recruiter
Recruiter
OVM,
Yes I am!!! Thank you very much!!!! After leaving the truck 19 years ago to raise my kiddies, i thought that I would be a dispatcher. That is what I did until I took this position 3 years ago. I'm here to tell you....You can not pay me enough to do it again!! # 3 goes many ways....including but not limited to: drivers, consignees, shippers, fork lift operators, man, the list is endless!! That is one headache I DO NOT want ever again! I'll just stick with talking to all of you wonderful drivers all day long educating all on the wonderful company I work for!
 

OntarioVanMan

Retired Expediter
Owner/Operator
Anne....I wasn't joking...we talked abit about 8 months ago and you gasped kinda when I said we were based in South Dakota...it was like.." we don't get alot of freight outta there"

Oh BTW...your companys next on our list should we feel the need to change.

We talk about how people make informed choices...well you didn't lose because of company status....just Buchanan is closer then Toledo...go figure eh? Such a professional decision!!*L*
 

AnneM

Recruiter
Recruiter
it's only 177 miles difference, but with the rising cost of fuel, I guess I can understand your "informed" decision! LOL!!!
 

greg334

Veteran Expediter
It's only 177 miles difference, but with the rising cost of fuel, I guess I can understand your "informed" decision! LOL!!!

Well it is a lot easier to get to Toledo than it is to get to Buchanan, just keep going on the turnpike. You won't get lost driving around some small town with two stop lights.

177 miles, that is in sprinter language 'nothing' - that is 8 gallons of fuel or $27, c h e a p !
 

LDB

Veteran Expediter
Retired Expediter
Let me add a little to this. The percentages in 1 and 2 are random numbers not absolutes. The point of 1 and 2 is that if you aren't available most of the time and accept a good number of jobs you won't make money. If there are circumstances such as being unable to go to Canada, not having hazmat, not being able to stay awake for all nighters etc. then your numbers will be lower as will potential revenue. Many of the dispatchers are excellent but a few will be like mentioned in item 3 and once in a blue moon one of the great ones will have one of those days and uncharacteristically match number 3. Four and five are pretty clear and accurate as is.

Leo Bricker, 73's K5LDB
OOIDA Life Member 677319, JOIN NOW
Owner, Panther trucks 5508, 5509, 5641
EO Forum Moderator
----------
Support the entire Constitution, not just the parts you like.
 

OntarioVanMan

Retired Expediter
Owner/Operator
We also figured they'd have more western Mi,western Ind and north-west Ill. freight yeah know local customer base.
 

Broompilot

Veteran Expediter
Runs come from Dispatch, not in tip top shape for those long runs? Wether it is equipment or yourself Dispatch will remember.

Good points Leo. Wether its Truck Load or Expedite I hear it when I call in the excuses drivers give for being out of service or late.

Dispatch or Comapnies look at it this way: REASONS or RESULTS which are you Known to give or deliver?
 

davekc

Senior Moderator
Staff member
Fleet Owner
Biggest area I see is availability. Once that is out the window, the other items don't mean much.
Acceptance only has a value if they are profitable run. I don't settle on the notion that someone has to run the unprofitable ones.
In a day and time when fuel and operating costs were lower it was possible. With generally stagnant rates, that option is no longer on the table.













Davekc
owner
23 years
PantherII
EO moderator
 

RLENT

Veteran Expediter
My load acceptance rate is currently 100%, and my availability is currently 83% (I took today to recover from the last couple of runs) - but I have only been with my current carrier since November 30th - so I expect the availability % to go up. ;)

At my previous carrier, my load acceptance was essentially 100% (approximately 160 loads over 6 1/2 month period) - there were two loads (I think, if memory serves) that I was called about but didn't run. The first was one where the load was offered as a team load and I had no co-driver available at that point - so the load offer was withdrawn. The second was where I was out of service and dispatched called me by mistake - since I was already committed/previously engaged I couldn't take that run.

There were however a number of times where I was OOS and called by dispatch with a load - that I did ultimately run - simply because they didn't have anyone else to run it - or needed my vehicle specifically.

It was a little bit different situation than I'm in now ...... smaller carrier, shorter runs, etc.

Leo ..... I think you said it well - valid points all.
 

dhalltoyo

Veteran Expediter
5. I do my own maintaince and for an 18 year old van it runs fine. The two things a company will remember over everything else is on time delivery and price.

I will agree that "on-time delivery and price" are important to every shipper and consignee, but there other factors that often outweigh those two. If it were not so, I would have never hauled loads in my cargo van that paid straight truck rates.

When delivering advertising samples to a consignee they did not want the freight to smell like stale cigarette smoke or chicken noodle soup (i.e. body odor). The agent wanted someone who could deliver clean frieght to an upscale store from an o/o with the proper attire and demeanor to match. For that, he was willing to offer $1.59 per loaded mile.

If price were the only consideration, we would hauling freight are markedly reduced rates.

When value exceeds the cost...the customer never refuses.
 
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