Stick to your guns!

Seams to me that its the fault of the subbie, for the rates we get for the jobs we do, as long as some run around for low prices, we have only our selves to blame, you can blame the vendors for what they are willing to pay, all you want, but as long as some run around for low rates, it affects all of us, You want better rates stick to your guns, I see a lot calling for regulation! Licenced by councils! How much will this cost, tacho, cutting down the hours you can work! Then vans will be limited to 56 miles per hour, more costs, slower to do jobs, I could go on and on, One thing for sure we need the exchange sites, to make sure that anyone quoting on jobs, is properly covered to do the job, full H and R public liabilty and of course goods in transit, The sites need to also make sure the vendors of jobs also will only give to jobs to people covered properly, Ie no life style couriers, not just breaking the law, but are being taking advantage of, with wild promises of easy money. Work out how much it cost you to do the jobs, remember you need to replace your van at some time! Not just fuel, tax, ins, maintenance!, then you need to live after that! I see a few sites, telling new starts to quote low even do jobs at a loss to get started, remember this just keeps the prices down, when you get established, Never run out on a backload, hoping you will get a backload, sit at home first! backloads are very rare! Remember you have to make a living and if if you do your job correctly you will, dont be a busy fools, Stick to your Guns DONT BE A MUG! PS mtvan YOU HAVE A MORAL DUTY TO US MEMBERS TO MAKE SURE ALL MEMBERS HAVE PROPER INSURANCE COVER! YOU ALSO HAVE A DUTY TO US TO MAKE SURE THE VENDORS DO NOT TAKE ADVANTAGE!

Sensible post.

One thing though. The whole point of exchange sites is to maximise efficiency. Why does this site sound like 'Empty Van' for example? The aim being to match loads with capacity. If there is spare capacity then it makes sense to utilise it for extra profit on both sides, if that means someone else sits at home then tough. That's business and you have to deal with it on that basis and not propose to try and legislate against it.

Before Exchange sites

In the “Good Ol’ days” We had Courier Companies, Couriers working for Courier Companies, and Companies needing goods moved by Courier Companies.

Some Courier Companies were Big, with multiple Offices dotted around the Country, some were small with perhaps just one Office covering only local work, and some were inbetween.

There was also an army of freelance Couriers looking for work from all of the above.

Whoever you worked for, or however you worked, you got given your job, collected it, drove to the delivery, got it signed, and then made your way back. Some Couriers were employed, but most were self employed getting paid a percentage of what was being charged to the customer. If you were doing a 200 mile job, you actually did 400 miles, 200 paid (collection to delivery) and 200 unpaid (from delivery back to base) a term we call “dead miles”. If you worked for a Big Courier Company, there was the possibility of getting a “backload”, for the rest, it was all about building up a network of likeminded Couriers and Courier Companies around the Country where you could try and get a “backload” from.

Most Couriers came back empty.

Exchange sites

With the advent of the internet, the need to continue to be competitive, and the numbers of vans travelling back to base empty, it seemed logical to try and do something about it. Hey presto Exchange sites were born. Where it used to take years to build up a network of trusted Couriers, and for them to build up a network of trusted Courier Companies, making endless telephone calls and drinking copious cups of coffee at various Courier Companies Offices whilst introducing themelves to eachother, you could now have access straight away to dozens of new contacts by joining an Exchange site with it’s own Network of Couriers and Courier Companies.

You also got:-

• Text alerts (or email) of any jobs within a pre determined radius set by you.

• Live tracking so everyone can see where you are, and where you’re going.

• The opportunity to get a backload from wherever you found yourself

• No more dead miles.

• No need for multiple Offices

• National Coverage

• Availability

So all good then, or so it seemed.

Exchange sites have since been accused of driving prices down. In effect becoming reverse auction sites, where jobs go to the lowest “bidder”. Whilst there may be an element of truth in that, there are many other reasons why rates are perhaps lower than they should be, and we mustn’t forget that despite this, Exchange sites have undoubtedly contributed to lessening dead miles, by offering more opportunities to get a backload.

What is a backload anyway?

A backload is a term used for those loads that take a courier back (or partway back) to where he started from.

For example, a Courier who has just cleared in London from Manchester is looking for a “backload” from London back to Manchester or enroute to Manchester, i.e a collection near to where he’s just delivered to, going back or partway back to where he started from.

He is looking for a backload because he wants to minimise his dead mileage, thereby maximising his profits. Exchange sites were designed specifically to help with this, by giving both Courier Companies and Couriers alike, access to eachother’s whereabouts and jobs that need to be covered.

So what is a backload rate?

One man’s backload rate is another’s normal rate, so how do we determine what a backload rate is?

To some there should be no difference. Afterall, the mileage is the same whatever you want to call it, but clearly you can be more competitive than the local couriers, because you’re going back empty anyway, so it’s icing on the cake whatever you get. Not good news for the local Courier but you’re a Business, as are they, and you’re looking to maximise your profits, and let’s face it they’ll be looking to do the same when they’re in your area.

Knowing what to quote is another matter. You want to quote lower than everyone else to ensure you get it, but you don’t know what lower is, so how can you ensure your quote is accepted?

You could ask, but I don’t think that comes across as very professional. Much better to quote a figure that you are happy with, a rate that will pretty much guarantee that you are successful in getting the job that’s advertised, and a rate that a local Courier is unlikely to be able to match unless they were co-loading and quoting lower on that basis.

I have a backload....

No you don’t. You have a job that needs covering. The term “backload” is only applicable to a Courier wanting a load back to where they started from. To the rest of us it is a job that needs covering. So how is it that we see Exchange sites full of “backloads” rather than just jobs?

The term has been hijacked to mean a job where the window for collection and/or delivery is long, e.g. the collection may be for anytime today to be delivered within the next 2 or 3 days. It is used to specifically target those Couriers who, because they will be going back in that general direction, can quote accordingly. By that I mean cheaply. It is telling the local Courier that there is little point quoting for this type of work as he will be competing with someone who can offer a much lower quote, unless that is, the local Courier already has a job going that way which he can double up with (a co-load) and therefore be equally competitive with his quote as with the backloader.

Some vendors (by that I refer to Courier Companies) have even taken it upon themselves to offer for sale “backloads” with no such lengthy windows for collection and/or delivery , i.e Urgent Sameday advertised as backloads. This is again suggesting the vendor is looking for cheap, as he is only wanting quotes from those going back home who are able to undercut the local Couriers. This may well be because (a) they have offered to carry out this particular job at a reduced rate themselves, or (b) and more likely, that they want to make more profit at the expense of the Courier. Both are wrong, (a) because it sets a precedent , and (b) because without the Courier you have no business, so you should want to treat them fairly.

You need jobs paying the right price in order to subsidise those that don't, and without them, you can't have the other. If no one's paying the right price, then no-one will be going anywhere to be able to offer a backload rate from!

It is not hard to see, with the advent of exchange sites, that the local courier has found it increasingly difficult to successfully quote for work. He is up against those clearing in his area looking for backloads, and is why we see an increasing number of Couriers quoting low even from their local area, in the hope of getting their own backload from wherever it is they happen to be going to.

It’s a gamble, but one that many are seemingly prepared to take.

What it does do is lower rates. Some would say to a level that is unsustainable. Who is at fault for that is debateable but no one can deny Exchange sites have altered the way both Couriers and Courier Companies operate, that they have indeed cut down on dead mileage, allowed Courier Companies to cover more work, to have less of their own Couriers, to have less Offices, and to give Couriers access to a Network of Companies looking for work to be covered. It has allowed the smaller Courier Company to compete with the Larger Courier Company. It has allowed local Courier Companies to cover work Nationally.

And It has given us all access to a Network of thousands of Couriers, and Courier Companies throughout the UK and beyond.

Exchange sites have become extremely successful in cutting down Couriers “dead mileage” and by increasing Courier Companies availability by utilising Couriers that beforehand they didn’t know were there. The downside of these Exchange sites, and the backloads they advertise, is that at some point you have to have a Courier going somewhere at the right rate in order for them to then be able to offer you a backload rate and exchange sites, or rather those that use them, seem to have made this more and more unlikely.

Price is one thing, but the service we all offer, or at least aspire to offer MUST always come first.

Otherwise what’s the point in what we do

Sat 20th. Job from A to B. Then informed that point B would be closed by the time I arrived. Could I take the goods back to base and deliver Mon 22nd. No problem however the cost would now be point A to B via C. Complete silence followed by the dialling tone. As Mr Ilkley Express says STICK TO YOUR GUNS.

Mr Speed analyses the situation well, personally I refuse to offer on any job that calls itself a backload. He is quite right that nobody can 'sell' me a backload, it is only a backload to the driver, nobody else. There are quite a few companies offering 'backloads' on same day - timed basis. Do yourselves a favour and ignore them.

Always

Speed Couriers Nationwide Ltd said:

I have a backload....

No you don’t. You have a job that needs covering. The term “backload” is only applicable to a Courier wanting a load back to where they started from. To the rest of us it is a job that needs covering. So how is it that we see Exchange sites full of “backloads” rather than just jobs?

The term has been hijacked to mean a job where the window for collection and/or delivery is long, e.g. the collection may be for anytime today to be delivered within the next 2 or 3 days. It is used to specifically target those Couriers who, because they will be going back in that general direction, can quote accordingly. By that I mean cheaply. It is telling the local Courier that there is little point quoting for this type of work as he will be competing with someone who can offer a much lower quote, unless that is, the local Courier already has a job going that way which he can double up with (a co-load) and therefore be equally competitive with his quote as with the backloader.

Some vendors (by that I refer to Courier Companies) have even taken it upon themselves to offer for sale “backloads” with no such lengthy windows for collection and/or delivery , i.e Urgent Sameday advertised as backloads. This is again suggesting the vendor is looking for cheap, as he is only wanting quotes from those going back home who are able to undercut the local Couriers. This may well be because (a) they have offered to carry out this particular job at a reduced rate themselves, or (b) and more likely, that they want to make more profit at the expense of the Courier. Both are wrong, (a) because it sets a precedent , and (b) because without the Courier you have no business, so you should want to treat them fairly.

Exchange sites have become extremely successful in cutting down Couriers “dead mileage” and by increasing Courier Companies availability by utilising Couriers that beforehand they didn’t know were there. The downside of these Exchange sites, and the backloads they advertise, is that at some point you have to have a Courier going somewhere at the right rate in order for them to then be able to offer you a backload rate and exchange sites, or rather those that use them, seem to have made this more and more unlikely.

Price is one thing, but the service we all offer, or at least aspire to offer MUST always come first.

I agree with the vast majority of what you say but if I may defend certain situations where backloads may be considered less offensive ;

Next day delivery

A savvy customer with an account with one of the overnight pallet networks calls a courier company they know well and ask for price and availability for next day delivery three pallets.

Any controller worth their salt will have a ball park figure in their mind that this customer would pay 135-165 to the overnight boys (depending on network/volume) so if its less than say 120 miles they could stick it in one of their LWB vans and have an extra run in the diary.

OR

If it's more of a distance job it may still be worth a punt on an exchange AS A BACKLOAD if they can find availability and they can make a bit on the job and the subby gets a bonus.

.

Sameday backloads just make me smile - DELETE :-)