Any successful new product must provide enough benefits that overcome the switching cost of using that product. The “hard dollar” benefits our platform provides are significant, but using it requires a shift in attitude and work habits, as is the case in many business applications. Namely, carriers and shippers need to adopt a “do-it-yourself (DIY)” mindset to enjoy an automated, direct-dealing, auction-based marketplace, vs. the current state of “yell at the broker and he’ll take care of it.” The current process, with all its dysfunctions, extra costs and complaints, is what most players in the freight/logistics business know and grown accustomed to. So it’s our job to provide the user-friendly path to switch to a different and much more efficient workflow and provide the significant incentives to change.
So let’s talk about those benefits. For shippers, LoadExpress provides two major benefits specific to them:
- Cut freight spend. This is achieved primarily through getting bids directly from carriers, and not brokered rates from brokers, which could contain margins anywhere from 10-25%+. Smaller shippers tend to get gouged due to their low purchasing power; 40% (margin) loads are not unheard of. And brokers control that margin and change it per load depending on supply/demand, equipment type, type of load, how desperate the carrier/shipper is etc. In other words, the broker maximizes his profits.
In contrast, LoadExpress just charges a flat transaction fee for each shipment through the marketplace. It would typically be lower than broker commissions. We do not gouge, take advantage of a user’s “weak” position with surge pricing. This is why LoadExpress will save its customers significant money by both lower freight rates as well as our usage fees.
2. Reduced Shipment “Give-Backs” from Brokers. A major complaint from shippers is that brokers often “give back” a shipment after getting it to fulfill, because they’ve found some better deal or couldn’t get it covered, perhaps by trying to squeeze the carrier too much on the rate. This causes the shipper to scramble frantically to find another party to cover the load, sometimes within couple hours of pickup.
With LoadExpress, carriers bid directly for a shipment. Most truckers are honest, hard working people who want and deserve fair pay. When they bid, they are signalling the price they are willing to accept. By eliminating the broker in the middle arbitraging the deal, there is less likelihood of give backs. If a carrier is abusing the system, shippers can rate them poorly in our rating system and warn others to ensure the quality of our users.
For owners operators and carriers, the benefits are equally large:
- Make More Money. By setting their own rates carriers make more money. On LoadExpress, carriers get paid the rate they bid for when it’s accepted by the shipper.
- Proactive Load Matching. Using us as another, totally FREE marketing channel, carriers can set their load profile for any time period and get an active alert of a shipment that matches their needs and bid for it. This enables our users to go after as many customers/ loads as they want, all for free.
- Reliable and Fast Payments. This is the lifeblood of carriers. Brokers are notorious for playing with carriers’ pay. Our motto to carriers is very simple: you did your job, we pay you what you earned. LoadExpress pays carriers their full invoice amount on any completed delivery with proof of delivery within 24 hours with ExpressPay (money code), and 2-3 days via ACH. No processing fees, holdbacks, or hassles; just hard-earned cash. Fuel advance of 50% of the invoice is available for qualified carriers. Carriers do not need factors by using LoadExpress.
We provide two major benefits shared by both parties:
- Reduce Aggravations of Managing Logistics. Through our comprehensive automation, we cut out a lot of the daily aggravations of running freight operations, a scene straight out of the 1980s. Everywhere I go, the #1 feature both sides go nuts over is the ability to track the shipment 24/7 via GPS. This is 2017. I was fascinated by GPS when I first saw it depicted at the end of Dr. No, when James Bond inserted a tracker in the tailpipe of the car he’s abducted in, and thus saved himself and the world 10 minutes later. That was 1962. We simplify your life.
2. Platform for Managing Spot Markets. We consolidate the above desk into one web platform with which you can manage your freight operations, especially your spot market needs. Instead of a hodge podge of paper, faxes, spreadsheets, load tenders, phones, and lots of yelling, you have one place to transact and manage freight.
In summary, LoadExpress provides enough benefits to both sides that can’t be ignored. We will use our product, friendly customer service and sales staff to convert our users to the new way to move freight, one at a time.