Saturday, October 30, 2010

Happy Halloween!

I guess technically speaking Halloween is tomorrow but nowadays it's like a weekend thing, and this IS Saturday night. I am lying in bed watching Game 3 of the World Series - kind of a must win for the Rangers. I am a National League fan but pretty much despise the Giants because Barry Bonds played there. Guess I don't really care who wins.

I am in Belleville with my new trailer and I am EXTREMELY happy with it. It has required more repairs than I was expecting. I put three new tires on it in San Antonio before I left and then a fourth one today (it has eight). I planned on two. I replaced the plug for the wiring harness as expected but found numerous lights either missing or not working. The biggest problem though was the trailer brakes. I had none.

Because I could not get an inspection with these problems I decided to just bring it back here with-out getting a load. Combined with no license plates, it was just too risky to get stopped, not to mention the safety aspect with no trailer brakes. My pals at Lombardo Trailer here in Belleville got me all hooked up today. All I need is to get the inspection and then tags and I will be good to go. That should happen Monday.

This is a better quality trailer than my old one. And yet I think it is lighter because it sure seems to tow easier. It has to do with the torsion-tube design. It is also lower than my old one. I definitely like that. But it is exactly the same length and width - 27'+5 X 102". I like it alot and am excited to put a load on.

Also on Monday I have another driver to interview. This is a friend-of-a-friend thing so I'm hopeful. I figure if somebody is willing to refer someone else then that is a good sign of reliability. My optimism about the economy continues. There still seems to be alot of freight moving but you really have to be aggressive booking the good paying ones. He who hesitates looses. Which means it is going to be difficult for me to continue driving if I am going to also dispatch my drivers.

I'm not sure if this guy I'm meeting Monday has a trailer. I know he has a Ford F350. Last month I only drove about 3,000 miles because I didn't have a trailer to pull. Now I have a trailer but possibly adding another driver who may not have his own wagon.

I once read that there are only two ways to make money (legally). You can work for your money - get a job where someone pays you to do something - or you can make your money work for you - invest in something that pays a dividend. So I buy a trailer and let someone drag it around. Sounds good to me.

But I also like to travel. Especially with my bike. And I haven't done much of that since getting my own authority; in fact NONE. But as winter approaches this is not the best time to be traveling (I'm not a cold-weather person). So I guess I'll suck it up for the next four months or so and continue growing my business.

Besides, I saw another trailer on Ebay that I really like. But I need to replenish my cash before that happens.

DEAD-BEAT BROKER update: Bowers Trucking was the latest addendum to my slow-pay list. I spoke with them on Friday, week before last and was told the check had been mailed the prior Wednesday. Last Wednesday - a week since it had been 'mailed' - I still didn't have the check, called them again and they admitted it had NOT been mailed because nobody was around to sign it. The good news is, not only did they find someone to sign it but they also next-day aired the check to me. Oh well, better late than never.

Saturday, October 23, 2010

Ebay Auction -- WON!

I am still in Paradise (Suncoast of FL) with-out a trailer which I have leased to one of my drivers. It just makes more sense to let him use it, thus keeping it moving and generating income. Otherwise, it would be sitting in a storage lot down here costing me fees.

I have been watching Ebay and Craigslist for more than two weeks trying to find another one for me. I missed one last week when the auction closed before I made my final bid. Ebay uses west coast time zone - PDT. I messed up calculating the east coast equivalent. My oldest son taught me a bidding strategy that he uses, an apparently works. But you have to be monitoring the last few minutes of the auction and make a decision with about 30 seconds left.

The trailer I really wanted - the one I missed - apparently did not sell. After the auction closed it showed that the reserve price had not been met. I sent two emails to the seller over a three day period but never got a reply.

The trailer that I did win is almost exactly like the one I have now - a 27'+5' dual-tandem with flip ramps. It is two years old and has a couple of tires that need replacing. The wiring harness plug has also been pulled loose and two boards on the deck appear to be loose. But I got it at a price that will allow me to make those repairs and still be good -- assuming there are no other issues. You take your chances with internet auctions. Better factor that into the price.

I have delivered cars that people bought off the internet; a few of them from auctions like Ebay. I remember one in particular, a Jeep Wrangler that from a distance (and probably in it's pictures) looked pretty sharp. It had been detailed and all shined up. But up-close and personal it looked like a tired old Jeep that had been detailed all shined up. I have know idea what the new owner paid but I'm glad it wasn't mine.

And my Ebay trailer story gets better! This all happened late Friday morning. While I'm moving money around and paying my deposit via PayPal, I get an email from another shipper moving freight. I get 6-8 of these A DAY with at least 2 or 3 things we could do -- if I had more drivers, which I'm working on. It is rare that I find a load that requires my truck only. But it happened yesterday afternoon!

The trailer is in San Antonio, TX. I am in FL. This load is moving from Kentucky to south of Dallas. Kentucky is not EXACTLY on my way to TX but it isn't so far out of the way that I can't go get it -- which is what I'll do next week.

I had planned on staying here in FL thru next weekend. My neighbor is having a party that Sat and the city of Treasure Island (where I live) also has an event that weekend. I don't have to be back in Belleville until Nov 2 for a doctors appointment (regular check-up). But this trailer I bought, and now the ensuing load getting me to TX, has changed that.

FOLLOW-UP TO DEAD-BEAT BROKERS

My last post I mentioned Anchor Freight in Oklahoma City and how they promised to pay us in 30-days but did not. I finally got a check from them yesterday -- 42 days from the time they received the invoice and Proof of delivery (the 'trigger' for them to pay us). Oh well, better late than never.

And now I have another one -- DEAD BEAT BROKER. Please welcome Bowers Trucking in Oroville, CA to my list. Their 30-days was up on Oct 14th. Supposedly, "the checks in the mail." Hmmm, never heard that one before.

Monday, October 18, 2010

When does 30 mean 45?

Perhaps the most aggravating part of my job is chasing dead-beat brokers that don't pay their bills in the time frame that THEY have agreed to. In fact, not only have they agreed to it but they WRITE the Broker Agreement and make you sign it before even dispatching the load. Who do you think that legal document favors?

Nine times out of ten the agreement calls for payment to be made with-in 30-days of receiving an invoice and proof of delivery. Many brokers add the word 'original' in there so that actually gives them another 3-5 days for the mailman.

My angst today is caused by Anchor Freight in Oklahoma City, OK. We moved their freight roughly 600 miles overnight paying for fuel on the spot as we went. They agreed to pay us "...within 30 days upon receipt of signed delivery receipt." They were emailed a scanned image of the signed Bill of Lading along with an invoice on Sep 13. The originals were sent regular mail the same day. They were 'in receipt of the signed delivery' on Sep 13 and yet here it is Oct 18 and the check isn't even written yet, much less in our hands.

What happens if you make your house payment late to the bank by one day? What do you see on your next utility bill if they don't have your payment on the due date? And yet in the trucking industry 30-days really means 45-days, if your lucky. Not all brokers are this abusive. But many of them are.

I have had to file claims against the bonding insurance company on a few occasions to get our money. That is a path I generally don't take until it's past 45-days. Perhaps I need to be more aggressive.

I think I will start mentioning BY NAME those brokers that can't abide by their own agreement - like Anchor Freight. Is that asking too much, to do what YOU say? I think it just comes down to respect. Or lack of.

Friday, October 15, 2010

Add Three...Subtract one

If there has been one recurring theme in my posts the last couple of months .... I have been crazy busy. But not so busy I can't get back to Paradise, which is where I am today. Running my new biz from the Gulf beach of Florida. I guess Life ain't so terrible after all.

I have actually been here almost a week now. When I left here last my #1 priority - besides my upcoming DOT Safety Audit (see below) - was to hire on another driver or two. I have done that -- actually completed paperwork on three new owner/operators. Of those three, one is working part-time; one is finishing up another obligation before going full-time with me (he says) and one has been terminated already.

The bottom line - as of today - I have one driver that runs regionally (my original guy, Mike, who is doing AWESOME); one guy who is local (he takes care of my very irregular construction company in STL) and one guy who says he wants to run regionally (we shall see). Plus me.

But I don't have a trailer anymore! I'm leasing my new one to Mike. My old one sits in Belleville for my local guy when needed (like this morning. And yesterday). Fortunately my other 'future' regional guy has his own wagon.

I spent several hours on the Internet looking for a trailer. I have found several that I like and have actually bid on a couple on Ebay. We'll see where that goes. In the meantime I am sitting in Treasure Island loving life and keeping two drivers moving.

Driving a truck does not require a college degree. Common sense, a sense of urgency, attention to detail and a good work-ethic are good starting points. I thought this one guy had the right stuff. But there were warning signs and I chose to look past them thinking ..... I don't know WHAT I was thinking, in retrospect!

The company this guy was already leased on with, when he and I first met, had a ton of work posted on the load board. Why wasn't he getting it, I wandered. One of the references he gave me from 3 years ago told me he was a bum (off the record). Supposedly he had borrowed money and never repaid. But greedy me thought he looked like a nice guy (he ALWAYS called me Sir) so what the heck. It lasted four days!

Fortunately for him (and probably me), I was in FL when his true colors began showing. I have him booked on a trip and he starts telling ME what he's going to do and not going to do. WRONG! Read the lease agreement, stupid. You may OWN the equipment and you may be DRIVING the truck but it belongs to ME for dispatch! He managed to get loaded for his first trip but never got out of town with it. I was two seconds from flying back to IL and doing something I likely would have later regretted. As it turned out, he had enough sense to take his trailer - with MY load on it - to a place where I had it moved onto another driver.

This other driver went on to make the delivery - a day later than originally promised - and then continued the dispatch I planned. The result was 2800 miles driven in less than 5 days generating almost $3200 in revenue, a VERY excellent week!

That all happened last Sunday and Monday. Monday night, I couldn't help but reminisce why I had got out of the restaurant business - EMPLOYEES! Now, in case the IRS is reading this, I do NOT have ANY employees. These owner/operators are independent contractors that lease on to my company. I did not invent this set-up. There are thousands and thousands of these O/Os on the road today. That being said, I am ultimately responsible for the things these guys do when it's MY name on the side of their truck. It's MY federal authority that they operate under. When I commit to being somewhere at a certain time, THEY need to do it.

But I'm all better now. Money will do that to you. Money may not buy you love but it sure helps your blood pressure when it's hitting your checking account.

I am still turning down at least 2 or 3 jobs -- A DAY! So I am still looking for another regional driver. Someone based in the STL area (that's where my shippers are) willing to be 'out' for 3 or 4 days at a time and owns their own diesel pick-up truck and flatbed trailer. I guess I'll try CraigsList again. It worked well the first time.

Meanwhile, I am in FL for another week or so. Then back to STL to add on another one. Or two.

Monday, October 4, 2010

Federal DOT Safety Audit -- PASSED!!!!

They tell you when you get your Federal Motor Carrier Authority (permission to conduct interstate commerce) that you will have a safety audit within the first 18 months. When I got a phone call THREE WEEKS after my authority was granted, I wasn't sure it was for real. I get 3-4 calls a week from all sorts of people trying to sell me something. But it was.

I had mixed emotions about the audit. On one hand I was anxious to get it out of the way. I felt; the sooner the better. I knew there would be things I needed to fix and I thought by finding out ASAP they would be more forgiving and I would have less to fix. But DOT officials are not known for their kind, generous attitudes. A great many of them are humorless, authority-wielding power-trippers more interested in sticking it to you than anything else.

Fortunately, Chuck was not one of those. He showed up at the house fifteen minutes early and spent the next two and a half hours going thru my stuff -- in great detail. Chuck was sincerely interested in HELPING me make sure I was in compliance, as opposed to stringing me up and looking for a way to fail me. I did have some things wrong but none of them were enough to prevent a positive end to his visit.

When he was ready to leave, I asked when he'd be back. I was expecting a follow-up visit. He said the next time he came back it would probably be a very bad thing because I was in trouble - accidents, multiple safety violations from drivers on the road, fatality (GOD forbid!). Basically, I was done. WOO-HOO! As long as my safety score remained low (that's a good thing. It goes UP as you have violations) he would be leaving me alone.

That all happen last Tuesday. I had run an ad on CraigsList the day before for Owner/Operators to lease on with me. Within a few hours, I had more than 8 people respond. I narrowed that down to three and met with two of them on Wednesday. I offered a deal to both. I am being EXTREMELY picky who I sign on. I am only interested in the best. I do not intend to be the largest trucking company and I have a lot of good paying work. So I can afford to take on the guys I think are going to be safe and have a brain that they use for more than just figuring out where the next truck stop is.

Of the two drivers I met with Wednesday, one of them has a 3-car, wedge-style trailer. I need flatbeds but do have a source of vehicles needing to move that I have been using for back-hauls - a way to get home. I told him I felt I could keep him busy with cars and trucks both ways but he said he would trade his car-hauler in on a flatbed gooseneck trailer. He called me over the weekend and not only did he find a trailer, but the guy he's getting it from is also interested in talking to me about work. SWEET!

The other driver I met with Wednesday is getting back with me this week. It's conceivable that I could have FOUR drivers going in the next couple of days! Mind boggling. In fact my head spins when I consider the near-term future. I don't know that I have ever been this excited about the path my life was on. And to think, it only took me 58 years to figure out what I want to do when I grow up (if I grow up).

My first 'other' driver - Mike - has been using my old trailer for the past 6 weeks and it really is marginal. I put it back into the shop early last week for major repairs. Mike is now pulling my newest trailer. I may be so busy dispatching 4 drivers that I don't have time to drive. Then, last Friday, I get a call from one of my steel pipe vendors he has a load requiring 10' of deck and weighing 2800 lbs that HAS to load Saturday morning for delivery Monday morning in New Orleans. And that is where I am this morning. Since Mike took another load up near Omaha and has a reload coming back to STL later today, I ended up throwing this steel into my truck and coming down here Sunday.

Now I am headed back to STL and get my newest guy set-up so he can go to work. With the possibility of two more after him later this week. spin-spin-spin-spin-spin