Hotshot Connect Forum :: COMPETITION!!!

Phil

So I did some research on one of the load boards, no wonder why my tasty little route is drying up.

In AZ right now there are 19 trucks waiting for cars going right where I am going, and most of them have about 6-8 spaces to fill.

In WA right now there are 22 trucks waiting for cars going south, and most are 9-10 car haulers. I guess my secret got out Sad

I should have kept my mouth shut.

This is worse Shocked

In total the are 119 trucks headed from SW to the NW and 145 trucks headed from NW to SW. Thats alot of competition, and thats just the "auto transporters", not the "hot shot" guys that like to grab cars going with their freight.

Tom Cobb · Site Admin

Car sales are way down so there are not many moving. Looks like you need to be looking for freight from dedicated customers and/or different routes.

bth9461

I feel for you Phil, the car business has been in decline for 2 years now. Those big 11/car guys feed on the new car trade and moving full loads of lease cars, it is amazing to see one of them in a CoParts picking up a single junker, with most of the trailer empty. I have seen this more than once.

The bad thing is they drive the price down on the single units for us 2/4 car guys. We just can't compete on price with them. I am finding that the singles are flying off Central at lower prices than ever.

The only way you can fight this is to get more direct customer's and capture the brokers cut 15-25%, you can't do direct deals for the brokers price. If anything you need to get more than the brokers for the service. This keeps the broker from having to cut his price. Remember not all brokers are bad, in the car business it is not them driving the prices down.

We have too many empty trailers in the market looking at too few cars to move. Personally I think if I was to do cars only I would get a good used 7car Rig ( should be some good deals coming). Takes money to make money. Those 7car rigs with a SA are very manuverable and look like they can be loaded/unloaded fast. The guys that I have talked to really like them.

As fuel prices increase, increased capacity (units or weight/length for Flat work) is what is going to be needed. I think freight will go more toward bulked up orders (full loads).

Niche markets can insulate you from some of this, but that usually takes a direct deal or a good brokered specialized freight.

One advantage with light weight flat freight like I do is that it takes the same amount of space on my trailer as a big truck. They only have 8-13' extra space on me and I get almost twice the MPG as they do. The big car Rigs can carry 7 more cars than you, that buys a lot of extra fuel. The main thing we small Riggers have going for us is customer service, which is hard to sell to the "We don't care who hauls it crowd" (load boards).

If your business plan calls for 100-70% brokered freight it is going to be hard until you can develope some more regular business.

Brian

PS: I delivered a Ram 4500 to Champion for a wrecker conversion. Nice truck, not as heavy as the GM's , but a very nice truck, priced about the same as a 3500 CC loaded.