8% fee for Hotshot dispatcher is too much

Discussion in 'Expediter and Hot Shot Trucking Forum' started by Cornel, Feb 3, 2019.

  1. Cornel

    Cornel Bobtail Member

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    That's almost $50.000/Year if you work with 4 drivers.

    I think it should be somewhere between 3% and 5% ....no more than 5%.

    Why do you (Dispatchers) charge so much ?
     
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  3. ZVar

    ZVar Road Train Member

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    If it's so easy, why not do it yourself?
    Also, it's obviously what the market will bear, so who in their right mind would not charge that much?

    Are you saying if everyone was offering $8 / mile you would turn it down for $3 / mile? For the same run? Of course not. Dispatchers are like you. They will try to get the max the market will bear.
     
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  4. Cornel

    Cornel Bobtail Member

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    @ZVar

    It makes no difference if it is offered to me at $8 per mile or $3 per mile. At 5% fee with 4 drivers you (dispatcher) will be making as much as a driver makes. I don't have a problem giving you 8% if you can guarantee me $300.000 revenue. Or we can do this: 5% up to 200k and 8% over 200k. You depend on my service as much as I depend on your service, we all want to make what's fair…. my fair value for dispatcher fee is 5%.


    I'm looking at the numbers….numbers never lie:
    Revenue $176.000
    Driver Gross - $60.952
    Dispatcher Gross (5%) - $9.000
    Based on my calculation, dispatcher makes 15 % ($9.000) with 5% fee.



    Revenue $176.000
    Driver Gross - $55,673
    Dispatcher Gross (8%) - $14.000
    Based on my calculation, dispatcher makes 25 % ($13.918) with 8% fee.
     
    Last edited: Feb 3, 2019
  5. Western flyer

    Western flyer Road Train Member

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    That's the price you pay for a owner operator.
     
  6. blairandgretchen

    blairandgretchen Road Train Member

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    Then dispatch yourself.
     
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  7. cjb logistics

    cjb logistics Heavy Load Member

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    Pretty good money for a driver $55,673 off 176.00 dollar revenue.
    Someone losing money!
    Guess you could have forgotten to put commas in where periods are, which would mean a huge difference in math and money.
     
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  8. Cornel

    Cornel Bobtail Member

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    Are you a dispatcher sir?

    $176" thousands" revenue.If somebody is losing money would be if it doesn't make $176,000 which I believe is the case here. I had Hotshot driver telling me he made $330,000 last year... Hard to believe but that's what he's claiming...he even said he can prove it with his 1099. He also said he paid 20% to the house.... What a rip off. As a company driver you make standard 50 to 70k a year.The point of being an owner operator will be to save in the equipment maintenance and try and run more efficient... If you fail at this you will be making as much as a company driver.Anybody can run the numbers ,if you lease equipment and buy the trailer at the end of the year you will be making as much as a company driver. Hotshot business is a dream pipe.
     
  9. Lite bug

    Lite bug Road Train Member

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    What does it matter how much dispatch makes? The dispatch service works for you. If you make money he makes money. If not you both go out of business. Simple as that. I have seen it over and over again. Successful dispatching creates successful operations. Unsuccessful dispatcher do something else.
     
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  10. cjb logistics

    cjb logistics Heavy Load Member

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    My point is, put comas in your math, thats all.
    $176.000 is (hundred and seventy-six dollars), not $176,000.00.
     
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