Why Trucking Businesses Fail Ep.1 (Middlemen)
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- Äas pĆidĂĄn 10. 09. 2024
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Whatâs up yâall? Iâm David McGill, a 2007 graduate of Indiana Universityâs Kelley School of Business, an experienced accountant, trucking business owner, and consultant. I created Trucking From ScratchÂźïž to help other entrepreneurs start, run, and grow successful trucking businesses by breaking down the business side of trucking.
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Truckers need to think like brokers. Start cold calling these shippers asking for freight just like the brokers do.
Do you need a Brokers license to do that? I'm going to spend the next year researching how to do this so I don't fall flat on my face first time out
chris williams no
Thats what they want but the key is to have insurance that covers freight shipping and merchandise without it companies wont risk dealing with the operator directly
Exactly, what I do is start at your home location. Deal with the known industry and start knocking on some doors. It doesn't matter if you have one truck and trailer. Provide time availability and work with from there
Boy hush u sound like a fool
Running a trucking business is hard but very rewarding if you operate it professionally by the books! If you start taking shortcuts it will cost you and put you out of business
Young Buck Youâre Smart as Hell. Ole school. Got into the Game late as Hell but In it to Win It . Trying to to be an O/O in my Second Year!
It's the same for me OG, and this young man is showing the very important 1st steps of the business. I'm too old to be making disastrous and costly mistakes
you are the best teacher on youtube AND on the internet concerning the trucking and transportation industry. Amazing videos, Amazing
Agree
Really helpful and I was thinking the same thing, too.
I love this guy's low key vibe
Quit being soft.
That's a decent breakdown of all this stuff, but say ypu own the truck you must also factor in fuel, ifta, insurance, maintenance, and tires. After years of running, tires cost a half cent per mile per tire, and maintenance approximately 15 cpm if you diy. Also fuel is 50 cpm. Truth is, yoy wont make money hiring drivers or any middleman until you hace 2 trucks and direct shippers
U nailed it brother. đ
Thank you for making these videos. My husband and I have recently started a trucking business. We know that we can expand very quickly, but I have learned that slow and steady wins that race. I want to make videos to share my experience, because I am quickly learning that our experience is perceived to be easy, and It was NOT! You break it down and take some of the guess work out of it. Appreciate you.
can i talk with you email me Ritawilliams1151119@gmail.com
My husband and I are in the process of starting a trucking business now. Please share your knowledge and wisdom. I would be ever grateful. PLEASE
Please share
You started out the video perfectly! Trucking isn't as easy as people think!
Amazon has the best deal right now . If you can get with an approve carrier and look pass the broker fee . You can easily take home 2500 - to 3800 a week after expenses. Amazon a covers a fuel surcharge and tolls included on a flat rate. Drop and hook light on the trailer less headaches.
Erik Rodriguez check companies In the tri state region. Like cornerstone logistics , jrc, gi joe
everything you explained is right but please let everyone know that they do not bring home that full amount you have to put in the fuel cost and insurance
Most definitely!
Great info. Just to add that most new owners don't the capital or relationship to start ( owner to Customer). Is that a bad thing? No, depending on how you view it.
The idea should be that you learn the business and in most cases you start at the bottom with the understanding of creating a network along the way if operating under someone's authority.
As time goes by and you're learning the business and even as a lease operator you are paying off your truck, establishing relationship's and collecting phone numbers, addresses of the customers. ( Remember, all truckers have to start somewhere) and who is the guy directly in front of the shipper? ( You are) when you're checking in or signing out. Get information and store it for when the time comes that you have eliminated the middlemen along the way. You have to think progressively when being a trucker. This business is not a Sprint, it's a marathon.
Drake said it best ( started from the bottom now we here).
Cheyenne, this is just what I (wife, Cecelia) needed to read! It just clicked! It makes soooo much sense!!!! My husband has his own truck paid off, he's looking into owner operator. I'm trying to become the middle man, and I'm trying to learn the ropes.
The owner operator in the first case owner operator dealing with the shipper is not the best way to make money. He/she is limited to driving by the 14 hour rule. The person closer to the bottom although making less on 1 truck can have 10 trucks going at the same time. A self-employed truck driver has its's limitations, where a business owner carrier can have trucks running most of the time. Just depends on what type of trucking business you want to have. Its just like a person with a single store vs a franchise. The single store is limited by 24 hours in a day vs multiple locations (franchise) making less per store but more stores.
I just had realized why I went out of business a few years ago đ€
Exactly. And being a one truck owner finding a direct relationship with a shipper is tough....they usually want multiple trucks.
And loadboard brokers? They aren't regulated by the FMCSA....they want you to haul their freight, but will dip 15 to 50% of the shipper rate.....that's outrageous! That's why O/Os are going out of business!
Brokers brag about making $200 in 5 minutes while out jogging, while you are taking all of the risk and expenses.
Unless you can find a trustworthy broker, you won't make much either. đ
Slow it down
Truth 100% facts brokers need to be regulated at 10% max. They have a fixed cost we don't.
@@thollins6582 Now are there programs you can just get on your phone without needing a broker?
Real talk
Broker or making a killing
Why be a one truck owner? Instead of buying a new Pete for $200k, you could buy a fleet of several used Freightliners, International, or Macks. Near where I work is a Mack and Volvo dealership. Iâve seen times where a local trucking company turns in a bunch of trucks at a time. The dealer then puts them on the used lot. See about making a package deal. Penske, Ryder... have used truck sales. You could get a basic fleet truck for a fraction of what a O/O new truck can be had for.
For the O/O, cutting out the middlemen has the potential to put more in your pocket while also allowing the shipper to save as well. This could be in shipping cost, convenience, consistency, reliability. Look to improve upon what the broker is not doing for them as well, when trying to secure shippers....thx for the vid.
Did it and we are loving it. Took us a year to establish a relationship. Don't give up!!! You have to go get yours. Saved the shipper $ and we can better concentrate on hauling loads.
Yes! Finally someone spoke about it once and for all! All those people talking about how many thousands they made but the truth is not every situation is the same! Very nice of you to speak about it brotha!
Some in correct info in your last variables. Leasing on you would not have dispatcher fees, or brokers that comes out of the total lease on percentage. Furthermore in the original calculations leasing on your would not have freight insurance covered by lease companies as well. Other then that some good info for newbies to have a starting point. O/O here 12yr 16trks. Thanks for putting info up for people that need a place to start.
Left out also your percentage used for leasing on is very low. Most lease numbers run about 22-25 percent industry wide. Not the 10 percent you used.
BTW: *DAVID* YOU ARE A *GENIUS* SIR !!! LoL
Insurance is the new middle man
I swear there needs to be a HARD cap on insurance and tiered for risk if needed. Insurance is like the wild wild west,...they do and charge what ever they want.......
Donât forget to add factoring company in!!
You said what needed to be said!!! I enjoy your videos keep up the great work!!
Still resourceful 4yrs later, thanks bro!
Great info and thanks for getting right to the point
Yup! You can add factoring companies as middlemen, too!
people out there think that this business is easy? wow lol. I haven't even started a trucking business and i know that it anything but easy. I'm a rookie cdl a driver and man oh man there are so many things to learn on top of perfecting your driving skills.
as always good information. but there is another option where you can lease your truck to company who have a contract with shipper.
I'm confused I thought that Brokers couldn't take more than 8% of the load payment ? So if the load is paying $1,000 then the broker is only entitled to $80 help me out if I'm wrong here please...
Thank God for people like you. God Bless!!!!!!!!!!!!!!
Sir you have a new subscriber and a new student if you mentor! Iâm working on my business credit to get into trucking. Iâm paralyzed so I will be hiring a driver
Dear David, Thanks for explaining these middle man. what an eye opening how these middle men taking a bite of your profit.
Thanks for putting this illustration together. I really enjoyed it. appreciate your time. David, you must be a very nice person to dedicate your own time and sharing your experience with everyone here. my gratitude and appreciation to you. Mat.
Mr. McGill, I appreciate your channel and the excellent content you provide. Todayâs âMiddlemenâ video was insightful.
Typically when you lease on to a company, they charge you 10-12 % which includes dispatching and factoring. Some companies allow you to book your own load under their authority for 5-7 %. Also, some people confuse lease on and leasing. Leased on - you running under their authority. Leasing - you rent their truck.
I would say if youâre very disciplined, know art of persuasion and have good sales techniques and risks mitigations, then being o/o and run your own authority would fit you. But if youâre company driver who wants to make more money as o/o, leasing on to a good company is a good option too.
Good luck!
Thank you for this informational video. You broke it down just right. I'm a driver thinking getting my own truck, so I am researching the business 1st. Keep those videos coming đ
Brother, I love how you bring unfiltered, practical insights for getting started in this field.
Much luck and blessings to ya!
David, you are the BEST THING that I have stumbled up on. Keep educating those who want to succeed.
Thank You bruh for breaking it down.. Lord knows I needed this. I was recently hurt on the job and no longer able to drive so im starting up my own trucking company and im not gonna lie (I am lost) đ€Łđ But im figuring it out before I make that big leap! Ill most likely be hitting you up for more information. I look forward to building a relationship. Once again I thank you and I salute you young King
Rob Tell us what happened.i hope u successful
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thanks for the videos
Great video. The other information they need to be provided is what are they getting themselves into when getting their own authority like all the fees, audits, registering the trucks, insurance cost, etc
Agreed.
Part 2: How I Make $1,300 Per Day in a Daycab | Expenses Explained czcams.com/video/QfaoAuFTo9c/video.html
Those monthly expenses donât ease up when your waiting on the 60 day payouts.
@@RichardCSmith that's why credit is important because it will fill in the gaps get you a card that has 0% for 12 months and that will give you cash back bonuses for spending.
@@RichardCSmith this why you use a factoring company, paying that 3% is worth it and a tax write off.
Thanks for the great video, I wished you touched on a solution for the middleman like tips on having direct customer relationships and finding them
Youâre great at breaking it down and making it easy to understand than most trucking youtubers
Wawww thatâs good class,and you are great to make clear how truck businesses are running.
This broke it down to the foundation!!
The trucking end of it 90% already know.
It's how you went about booking the load, that conversation and from that point the A to Z of booking, steps in between if any and then finally what was necessary to getting paid that will benefit most of us.
Thanks for posting, so let us ride along with you on the other end of the transaction....the business end
Thanks for your videos. I'm learning a lot. Keep it up. I appreciate you.
Hey man, just want to say you're a good guy, keep up the good work!
Also what's left is not clear you have to pay for fuel its not cheap about. 50 cent a mile a driver will cost an average. 60 cent truck payment about 2800 a month and another 1k for the trailer developing relationships with shippers and being honest and ON TIME is very important otherwise you go out of business don't worry what others do always see what you can do with a business
how do you establish a new customer? what is the title of the person in that company you should ask for? what kind of questions do you askof the person? what do you tell them about your company? how do you establish a price for the load? do you charge a fuel surcharge? thank you in advance!
Dispatching and Training
6629343394
I really enjoy your videos they're very clear and honest and I wish I had happened upon them before I leased my truck. Thank you
Awesome video! Not to mention if someone did not have direct access to the customer, other cost to rune that truck.....Fuel, being a big one! Thanks again. You have opened my eyes for what I'm trying to do next year. And, I love the way you place the examples on the chart. Very Real.
Thank you for sharing your insight. Your video was the first one I clicked on, and i'm now glued to your channel.
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We got to talk David need help
Houstonj60@yahoo.com
My email above I couldnt find yours .
Tell the truth do lie it makes u look bad there is no way around a broker
Hi David how are you ... Got a burning question in my mind. A lot of upcoming trucking firms enter the industries through subcontracting under other big trucking firm ....SO what are the effects of subcontracting to small trucking firms
you still have insurance, broke down cost, urgent repairs, etc.. thanks again for the video
Im all the way at the beginning of this journey as im funding myself through CDL school, i dont even start till november but being an owner operator is something ive been looking into and this guy has a really good teaching ability. Thanks for this David !!
It's 1 yr now. I'm just watching this video. Did u get ur CDL license?
@@charlenerevell7543 yea i did, i was the 1st in my class to get it but that isnt really important, i started off at a job driving a 48 ft reefer van making local and regional deliveries but i was home daily, they also taught me how to use a pto. About 5 1/2 months ago i got another job driving up and down from Washington to Oregon basically living out of the truck lmao, the pay was really nice during the summer and thru the end of September but it has slowed down quite a bit not really worth it to me anymore. Im getting myself into thr electrical apprenticeship with the local 46 state union here in Washington, idk just want to learn more than how to operate a cmv.
@@charlenerevell7543 so i guess being an owner operator isnt something ill be looking into doing haha
@@drduzzit8761 Thanks for sharing! I'm thinking about buying a truck. Not gonna drive. Don't think I can do that. I just want to start a business. Trucking seems interesting. Still doing my homework on other things as well. Thanks again! đ
@@charlenerevell7543 best of luck to you!! Make sure you have enough capital to fix the truck before you put it out on the road, its my experience that random things do and will happen!
Love your content, subscribed!
Sir. You are changing the game completely. Thanks for sharing and being transparent. Good Job Sir. Iâve subscribed , shared and liked this video #knowledgeispower
Man you are a teacher on this, love it..thanks Iâm learning a lot from you.
Great video. My question is how do you get relationships with shippers?
Awesome video explains a ton. Waiting for part 2
I appreciate you simplifying what explaining.
I don't know who could dislike this video.
Good stuff. â€â€đŻđŻ
haters
dispatcher and brokes....i think
I just learned something new. Thank you! Keep it up
Congratulations. This all information correct đđŒ
I want to know how to make direct contact with customers. Great video!
Ayye thanks Iâm new to Owner opp this helpede change a few things
This guy is cool as hell....... straight to the pont
Bro your one of the best Iâve been watching and so easy to understand. Keep making videos. Your helping me stay in business and I havenât even started yet. Letâs jus say your my walk up call. Letâs go get it thank God for you (DM)
Your videos are very helpful plain and simple. Iam in the beginning, gathering information. I've been a driving 9 yrs. Thanks đ
Your information in the videos is very clear and concise, Keep up the great work.
Bro the ad placement is crazy for a Wonky Donkey type of video!
Thank You Mr. McGill for sharing this valuable information
Great video Boss keep telling the truth.
A mean , how the heck yâall make money then . This just crushed my dream from starting a trucking business
You are inspiration, I myself haven't gotten my truck yet due to I want to be efficient with the process. Thanks bro
This was the best breakdown I have seen thus far! Just subscribed!
Overhead, overhead, OVERHEAD !?
Great video!
You can call it overhead or undd
You can call it overhead or underhead or give me some head it all still comes out that the trucker gets fucked
This was a huge help
Very good subject matter. You use real life examples of what most people are asking themselves. Perhaps using some hindsight scenarios of the route and experiences you took and encountered as well. Just in case you have, I will look more into your profile for more material. Good jobđđżđđż
Can't wait for the detailed course
Video was on point
Great info my good brother.please keep up the great job
Good shit bro.. Man u helping me out alot.. I'm getting ready to get into the trucking business and this is the shit I needed to hear.. Any tips please let me knw??
Same here...
Thank you you save time
U the goat David đđŸ
Great way of breaking that down,Man !! đ€đ€đ
Great video, excellent explaining of the basic process.
Great video looking forward to the series
Thank u so much for this information
This was very helpful information. Thank you!
Great video. May want to add factoring as a middle man that reduces the bottom line as well.
That was a gold break downđđżđđżđđżđđżđ„đđż
Good looking out
Dear bro its clear and usefull Information keep it up!!
Thanks for the breakdown
Thank you for sharing the valuable information.
Keep em coming man! Love the videos!
Very good instructions
Great video Iâm a o/o with o/a mostly use load boards just looking to utilize customers directly more
big difference from the top and bottom line...
I wish I saw this video before I got into trucking
Into trucking as a company man or owner operator?
@@fuccillo111 Trucking as a whole
Is it possible for you to get out of the hole?
@@mouhamedbarro4583 Very possible. I just did. Got my own MC
I enjoy your lesssons brother!!