Many starting out these days are going with dispatch service to do the leg work of finding loads for numerous reasons. Mostly I’m seeing this is due to not being fully prepared to start in the business.
One thing to keep in mind, they work for YOU, you don’t work for them. You are the boss, you set the terms and conditions. Do not allow them to set the standards for you and your company.
Some want POA, bad idea. This gives them way to much leeway to use your good name and could bite you in the backside for obvious reasons. Same goes for them wanting a “contract” that limits your ability to run your business as you see fit. Anyone that demands these should be avoided. Again, they work for you!
Dispatch service could be utilized in keeping you loaded, but are they following thru with what they claim they can do as for RPM on loads? Are they doing the paperwork, problem solving as described? These are just a few things that carriers/drivers say why they use them. I can say in all the years I’ve been a carrier, I’ve never needed them. It really isn’t rocket science to negotiate on a rate, and with today’s technology, it’s simple to find and book them as well. Billing isn’t tough either once you learn it. For myself, I learned by trial and error and now can do it in under 30 mins., something you could do on your 30 min. Break.
For someone considering on getting into Hot Shot trucking, I’d suggest having 6 months worth of all known bills, and projected bills(fuel, repairs, etc.) saved up to bank yourself. Then if you feel you don’t have the skills yet to book loads, want to get rolling ASAP, hire a dispatch service while you also learn how to do what they do with the eventual goal to do your own booking and billing.
If you’re skeptical on doing it, or feel the cost is minimal, it’s understood. But something to ponder, if you learn the hows and whys of booking and billing yourself, you can look at what it costs you annually for one of these services. Round figure wise. Some of you may be paying upwards of $20,000 a year in fees to them, some may be more, or less. What could that $20,000 do for you to benefit you more? A month off for vacation? Down on equipment? College for kids, car for the wife, home improvements, the list goes on here.
Whatever route you decide, bottom line is, YOU are the boss, not them. You make the calls, not them. Don’t let them bully you into signing something you’re not comfortable with, esp if it locks you into a deal you can’t get out of easily or without costing you more money. If you’re not sure, ASK someone but remember, most intel you receive from social media or the likes are merely an opinion. Ask for facts to verify what you’re being told. A good idea is to have an attorney that can read the legal BS of anything they want you to sign to cover your backside and protect you and your company. Don’t be in a hurry just to get rolling, you must be business smart about it.
Dispatch Service vs booking my own loads- Pros and Cons
I have written chapters on this subject, in my book, on my groups, in comments. It is something that is asked daily. Also Dispatch services have grown almost as much as non-cdl hotshot has. Everyday we see several post requests for new dispatch services. It is a sure way to make a decent income if you can find a few trucks to dispatch for.
Especially for Semi Trucking, there are plenty of loads and demand for trucks. Hotshot not so much and it takes skill and experience to find loads and keep trucks rolling. Even the best Dispatcher can not perform miracles and find loads in lanes that are oversaturated with drivers and trucks. Also, some areas are hard to find a load out of. Don’t ever let one tell you that they can find loads and keep you always rolling.
What are the advantages of using a Dispatch service?
For the owner/operator getting into the business, dispatch service can be invaluable. A good dispatch service can help you in so many ways. Not only can they do the countless hours on the phone, paperwork, building your carrier packets, emailing, faxing, submitting bids, finding you loads that they have vetted, negotiated for rates, checked credit, communicated with brokers and shipping companies, routing, keeping up with your HOS, your location and destinations. Looking and finding you back loads before you get to your drop while minimizing deadhead driving. They know what equipment you have, what lanes you are willing to travel, what you are capable of, handling customers and brokers, getting permits, looking up businesses and phone numbers, contact information, and so much more.
A good dispatch service works for you and is your business partner; they don’t get paid unless you do. They offer guidance, mentorship, advice, and experience. A good dispatch service will be able to suggest how to secure your load if you have questions, what the best route is. They should be experienced and familiar with the cities, states, highways, and Interstates that you drive and deliver loads on. Preferably they have been behind the wheel and been in your place before. However, some may have enough experience to compensate for not having been a driver. I have seen some great ones. It is just my own personal preference.
Here are some key points that I would look for in a dispatch service:
Have their own customers or brokers they work with, their own accounts. Not get all their loads off load boards where the competition is fierce, and many loads are those they could not find their own clients to fill. Some of the best loads never see a load board. Brokers would rather work with dispatchers they can depend on and not have to list every load and field phone calls all day.
Dispatch service should negotiate you a better rate than what is listed, figure in tarp charge, detention time, fuel surcharge. They should know that a load needs to be expedited or same day delivery and charge accordingly. Partial rates should not have time constraints and they should make that clear to broker.
Great communication skills, when you need a dispatch service, you need to be able to get in touch with them or they should call or text you. Text is better because a good dispatcher is going to be busy on the phone a lot.
Personal attention: not so busy and overworked that they cannot do their best job and focus on your needs. I see that a lot, dispatch service is too busy to give you the proper attention.
Problem solving skills: so many times, loads are not what they say they are, the weight is off, no contact information, wrong addresses, pick up times and deliver times are not on rate-com, detention time at pickup.
Dispatch service work to maximize your loads and money. The very most important to many including me, they will look to utilize every foot on your trailer, to find you additional loads, partials, going in the same direction. If they are too busy, then they won’t have time or as I have seen are trying to satisfy so many drivers that they just go on to the next driver and send you on your way. It goes back to personal attention and service.
They are familiar with the mechanical problems and issues that are common. Know what you should look for, suggest maintenance, or repairs. Know of repair shops, tire stores. This is not critical, but it is a great asset for a dispatcher.
Understand the HOS (Hours of service) regulations and will help you to maximize your every minute.
