(01-18-2017 )in2trux Wrote: I agree with snailexpress, some good points on both replies.
The first year is the hardest.
You will have to go through the "new entrant" hoops, a DOT safety audit.
No big deal, the majority of it is just having all the paperwork done, dot the I's cross the T's.
I would highly recommend joining OOIDA. They are there for you and can get you in compliance with insurance and drug testig.
We have our insurance with them. $1mil liability, $150 cargo and it costs us about $1100/ month.
Hasn't changed much in the last 3 years.
The best part of being independent is you can be as picky as you want, negotiate your rate.
Untill you have a track record for being safe, reliable and on time the money will be a little weak.
No more getting stuck with crap loads more than once because the dispatcher sucks at pushing for the best rate, failing to ask all the important questions. If they have multiple trucks to find loads for, your going to get screwed or short changed.
25% is too high in my book unless it's their trailer and you have lots of value added services like fuel,tire discounts .
We where getting 88% but that was leased to a family member.
As for getting paid net 30, 60,90, most good brokers offer quick pay.
Essentially factoring, cost is avg 1.5% . Cash is king, go with who pays you fastest and don't let them get in your wallet for anymore than you can afford to lose. We have been paid for every single load, usually in 2-5 days. Invoices are scanned and submitted for payment same day when empty and clean signed bills are in hand. If you can afford to wait, track their average days to pay. 32- 35 is typical.
The checks never come when you need them the most. We try to not have more the $4-5k in receivables out on any one day.
Pay cash for fuel, nothing like getting a $5-6000 bill and waiting for a check to come late .
You do have to look for your own loads, constantly look 2-3 days ahead so you can sort through the junk loads. If you are organized, doing paperwork daily isn't too hard. Keep a calender.
If you have any questions, just ask.
"Independent " is something few can claim because it is more work. Nothing for nothing.
Not having to answer to a bonehead, PRICLESS!
I can help with the DOT AUDIT and for OOIDA don't get their insurance go with National independence insurance .. there are about 15 major brokers company that will not accept OOIDA..
