Date: Fri, 7 Apr 2000
From: "Michele George" <firstname.lastname@example.org>
Subject: RE: AMS-Forum TRUE STORY
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Jim Clowers wrote:
>An old friend stopped by my office today. He is a driver that I dispatched when I worked for a California company 10 years ago. He was one of the best drivers I've ever known, but he told me stories of 70% discounts. I have not actually seen a 70% discount, but I believe him. Anyway, at the ripe old age of 35, he is getting out of the business, and going to do something else. I'm not just taking the high road. We WILL find ourselves without drivers if this doesn't get controlled. I was an OTR driver for Bekins from 1979-1984, and the talk at that time was that the only reason a driver would choose HHG over freight was that the pay was so much better! I believe the pay is still better, but only marginal. For the difference in income, today I would not hesitate to haul freight.
The problem is many drivers don't usually know when a move is discounted by 70% because they are told it's a 55% bottom line, what is not told to them is the "effective" bottom line. No one tells the driver what tariff the discount is off of or that exceptions are waived or that they get their cut after the escrow for the 3rd party is taken off the gross. 65% to 70% effective bottom line discounts are much more prevalent then most think.
I spoke to a friend of mine last night who has been a hhg's driver for close to twenty years. When I explained to him exactly how the revenue distribution works, he was not too happy. He also heard the simplified proposed tariff T2000 was not going to happen. When I told him it was approved and is being refined for implementation, he said that is when he will sell his rig and move on.
One of the biggest problems facing this industry right now is there is no representation of the owner-operators. Everyone keeps saying there are less and less drivers every year but their own industry keeps chipping away at their revenue. Sure, lets combine or include accessorials of the tariff to make it easier for the salesman to sell or the customer to understand, it most likely goes to the driver anyway.
The customer will understand the charges if they are explained correctly. I don't know about anyone else's customers feel, but our clients want good quality drivers in order to receive CONSISTENT quality service and are willing to pay a decent price to have them. None of them have any interest in paying for services their transferee's don't receive or having their moves handled like freight! Okay, now I feel better.
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