[NOTE: This is a blog post from 2018. AFT Dispatch has decreased pricing to 7% – our point stands stronger than ever. Please read the rest of this post for further detail]
Wow, it’s been a while since I’ve posted anything on here. Sorry everyone!!! We’ve been very, very busy. Besides working our own trucks, we’ve also re-launched our truck dispatch agency AFT Dispatch in Salt Lake City. This has taken up much of my time and other resources.
In the process of restarting this service for independent owner-operators and owners of small truck fleets, I’ve begun to hear some of the same objections. Some are valid, and we cover these; however, some need a bit of evaluation. One objection I run into quite a bit is cost and so I’d like to look into it now.
Truckers tell me their dispatcher get’s them good rates and only charges 7% of gross. Sounds good but what is a “good rate”? So then we look into what they’re actually making and then compare it to what our clients are making with our “high” 10% fee. The results are always interesting.
Nearly every single time we do this, the picture paints itself. Let’s have a look at some basic mathematics, shall we?
Above is a chart I created. As you can see, it’s not about how much a dispatcher charges you but more about how much a dispatcher charges the broker.
Yes, we charge 10% while this competitor charges 7% but does it even matter? The $2.26/mile rate seen above is from an actual client has averaged this rate since he began working with us. This is for total miles, including all deadhead. Often, and strangely enough, truckers don’t include their deadhead in the total miles, as if those miles are free. We always look at all miles.
So in the above scenario, you’d make an additional $4,320.00 after paying us our “high” 10% fee. What this equates to is an additional $0.36/mile after cost. If comparing apples to apples, we’re talking a gross difference of $0.46/mi.
So tell me who’s the better option? One could literally put a driver behind the wheel, cover all of their expenses, never deal with brokers, or packets, or invoices, and still make an additional $0.36 – $0.46 per mile extra every month. Obviously rates vary but as I’ve mentioned above, this is a real client who as of this writing has averaged $2.26 per mile. If you drive yourself, then this is an extra $1,000 per week to do with as you please. And again, this is after paying our “astronomical 10% fee”. How dare we charge so much?
Let us know if you want to make more money on your miles! Give us a call at (801) 448-6363 or get started right now!
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