TRUCKERS - How Much Money Are You Not Making?

As a trucking company, owner operator, or even company driver if you're not also brokering freight as a freight broker or freight broker agent, you're missing out on literally tens of thousands of dollars!

As a transportation & logistics training and consulting company we are obviously working with transportation industry professionals on a daily basis. Either as their consultant or fielding calls seeking information concerning all aspects of the industry.

More times than not, a trucking company will contact us in order to learn how to find their own accounts. This is fine as a trucking company should have their own accounts for head hauls, using a freight broker exclusively for back hauls. Just by making this one adjustment in their operation they can increase their net income as much as 10% - 20% if not more.

As a trucking company client, one of the first things we recommend is that they should also obtain their broker authority in order to add another stream of revenue to something they are already doing. Makes sense doesn't it?

A trucking company that has obtained their own accounts can often broker their excess freight from those accounts which they are unable to pick-up with their own trucks. More times than not this is due to the trucking company not having any of their trucks available for the shipper when needed. So instead of saying "no" now they can say "yes" and accept their shippers load and move it using another trucking company. Thus they have made money from brokering the load which otherwise they would have made nothing.

Now you may be thinking, well that's fine for a large trucking company...they have the money available to obtain their authority and pay the trucks. I'm just a small trucking company, owner operator, or even a company driver & I can't afford that kind of expense.

You don't have to be able to afford that expense as you can do it for FREE! Ahhh...the FREE word, must be a catch. Nope, you as a small trucking company, owner operator, or company driver can start brokering freight by working as a Freight Broker Agent, now. Let's break this down per your specific position in order to better explain.

Small Trucking Company - You already have your own carrier authority. You should have several of your own accounts, if not you most definitely will learn how to obtain your own accounts as a freight broker agent. By contracting as a freight broker agent with an existing freight broker, you can now broker your excess freight plus start prospecting new accounts that perhaps you have delivered to in the past. In addition to finding shippers for your brokerage, now you just might be finding your own back hauls thus increasing your revenue since you are now eliminating the need for a broker on some loads.

Owner Operator - As an owner operator leased to an existing trucking company, there is a strong possibility that you will at some point in time become your own trucking company. What better time to start preparing for that day than today. By becoming a freight broker agent now, you can begin building relationships with shippers that will aid you in the future for your own trucking company. In other words when you decide to obtain your own carrier authority, you'll already have accounts in place thus eliminating the need to use a freight broker 100% of the time while you are getting started. In addition, you can begin making money from these new accounts that you are finding now, by brokering the freight they have available now. Another form of revenue which you can begin generating today!

Company Drivers - You are in contact with shippers on a daily basis. All of those notebooks you have that you used to write down pick-up and delivery information.... those are worth millions to you as a freight broker agent, and you can start cashing in on them now! By becoming a freight broker agent you can begin acquiring accounts in which you can broker their freight.... from your truck! Even if you moved only one load a week, you could be adding $200.00 - $300.00 per week to your income. You may even have the desire to get off the truck so you can be at home more... this is an excellent way to work toward that goal, and you can start doing it today!

You see, no matter how big or small your trucking operation may be, brokering freight either as a fright broker or freight broker agent is something you can begin doing today to change your tomorrow! We invite you to contact us to learn more about working as a freight broker or freight broker agent and how you can start making more money for something you are already doing. Just call 800.582.4167 to speak to a TALTOA Consultant.

www.taltoa.com

Hard To Believe It's September 2009...

What a rollercoaster ride it’s been over the past couple of years. Everyone, including us, has been so concerned about the economy and everything else affecting our lives that keeping our eye on our businesses has become more than a full time job, it has become our lives. In order to have a chance of survival, it had to.

From talking to many business owners it’s apparent that many went from working the traditional 9-5, Monday – Friday to working seven days a week from the time they got out of bed to the time they returned. Weekends and vacations have become a thing of the past. A luxury one couldn’t afford, at least for now.

Taking the time to review our previous posts before all started to grind to a screeching halt, we somewhat saw this economic tsunami coming. The problem was that by the time it was recognized for what it was it had already landed. Over 1000 trucking companies went out of business in the first quarter of 2008. This statistic repeated itself in the 2nd quarter.

Much of this can be blamed on the high fuel prices at the time. You’ve got to admit we may have joked about $5.00 a gallon diesel, but did we really think we’d see it? I remember back to my days of being a small fleet owner and giving drivers warnings for purchasing fuel that was over $1.00 per gallon, sadly that wasn’t that long ago.

Although fuel prices can carry much of the blame, the truth of the matter is that far too many trucking companies are unable to establish their own accounts and instead use brokers for all of their loads. A trucking company can’t exist using a broker 100% of the time. By using this practice a trucking company can easily be giving away thousands of dollars per month.

On average a freight broker will take anywhere from 10%-15% off the top. If a trucking company is running an average 3000 miles per week for an average market rate of $1.50 per mile the gross is $4,500.00 per week. If a broker is being used for 100% of the trucking company’s loads, the trucking company is giving away $675.00 a week, per truck!

A trucking company with their own accounts should only be using a freight broker for approximately 50% of their loads. In other words, the trucking company has their own accounts (head hauls) and only use brokers for reloads (back hauls).

By doing this the trucking company can add approximately $337.50 to their bottom line per week, per truck. For many trucking companies a truck payment. Over the course of a year they could add $17,550.00 to their bank account.

How many of the 2,000 trucking companies could have used an extra $17,550.00 in their bank accounts when things got bad?

In our Freight Broker Workshops we tell all of our clients that a freight broker is the most misused tool in the transportation industry. When used correctly, one of the best tools a trucking company could have in its arsenal.

We can show you how to find your own accounts and add that extra cash to your bottom line. To learn more about our Workshops, tools, and services visit our website at www.taltoa.com.