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Car Shipping Industry

Car Shipping Industry

January 8, 2016 By Nicholas Dutko

Why Are Brokers So Different When Pricing?

The industry that is car shipping is not one where set pricing occurs.  This industry is run and operated by many small car shipping broker businesses all looking to make a little cash where they can.  When a customer is looking up car shipping companies online they are merely finding many broker companies.  That is just how the industry works.  Each time a company is quoting a customer the company’s representative is giving a quote based on what else is being posted, what they believe will get the vehicle moved and then a broker fee.  This is the sole reason as to why prices are always different.

Being a person we each have a veiwpoint that is different from the next person.  I might look at the load board and think it will be $800 to move a car plus adding a $150 broker fee and chrage the customer $950.  Another person may think they can get it moved for $825 and a $200 broker fee and charge the customer $1025.  It is all about guesses and money being made.

When I am talking to a customer I always tell them to eliminate the cheapest quote because it will probably not move for that price.  I say this because that quote mostly likely has a low broker fee and the lowest price to give a trucker.  That means there is no wiggle room if a mistake was made.  The broker will simply charge the customer more so they can make some money.  Make sense?

Something that would help this industry is a system where poorly rated companies couldn’t be a member of.  Right now we all use Central Dispatch as the national load board.  Central Dispatch doesn’t care who is a member as long as they have the Federal licensing and paying their monthly fees.  We need a system that will discontinue service for companies with a 3-star rating and below.  This will help eliminate poorly run companies from ruining the customer experience in the industry.

Something else that could help the industry instead of a new system is having auto transport lead companies not sell to poorly rated companies.  Then if they cannot buy leads these poorly rated companies couldn’t stay in business because they have no way f getting in front of customers.

Obviously this is all my opinion at this point, but I truly do want this industry to be better for customers.  We want customers to want to come back and transport their car again.  Am I right?

Filed Under: Car Shipping Industry, Uncategorized

January 4, 2016 By Nicholas Dutko

The Car Shipping Projections For 2016

Now that it is officially 2016 we can all start out fresh.  In this piece we will discuss the projection for the 2016 calendar year in the car shipping industry.  This will go over what we expect to happen and why.

With all of the changes Google keep making with their algorithm for search we are projecting that more broker companies will gain ranking versus lead generation websites.  Lead generation websites have less websites to generation quality links from and will continue to be this way.  Brokers can become members to many more websites and be featured on more news articles and this is why more brokers will taking over top spots on the search engines.

This is beneficial for customers because now they can get one quote from a car shipping company and move on.  When they get a quote from a lead site most of the time they get 10+ quotes and customers are just hounded for weeks about moving their car.  Because customers will get less quotes they will have a better overall experience when shipping a car to another state and have less stress while the process is happening.

This, however, will hurt some lead generation websites.  Lead get websites need as much organic traffic as they can get because paid advertising isn’t the best when it comes to money making.  Lead sites have to rely on organic traffic to keep the lights on and leads flowing.  It is surely better to be making $10 a lead than it is to be making only $2.  It is not cheap to do have paid ads running 24/7.  That is the difference of paid advertising and organic.

The next scenario for 2016 will be the amount of customers transporting their cars.  It looks like it will be a big year for the industry because of so many new models being introduced and refreshed for the 2017 models.  These 2017 models will start hitting the lots starting about May and a bigger load will be in August of this year.  When there are many new models and refreshed models hitting the dealers lots the auto transport industry is always better.

There were approximately 156,000 vehicles that were transported in 2015 and we are projecting that number to be upwards of 165,000 – 170,000 in 2016.  Those extra customers will help generate over $14 million in the entire auto transport industry.

It is going to be a great year for car haulers.  If you’re in the business it is time to get on the road and start making the money and helping these customers with their car shipping needs.

Filed Under: Car Shipping Industry

November 28, 2015 By Nicholas Dutko

Shipping A Car Versus Driving It | Why It Is Better

When someone or a family is going to move they have a decision to make. Whether to drive their vehicle(s) or have one or more of them shipped to their new home. Car Shipping Carriers has many reasons that shipping a car from one state to another is worth it versus driving the vehicle.

Shipping A Car Versus Driving

When you’re looking to move the last thing you need is extra added stress.  You’re stressed enough having to pack up your entire house and hire a moving company or rent a U-Haul trailer.  Not to mention having to keep the kids happy, fulfill all of your work requirements, and have enough time to sleep.  Car Shipping Carriers think shipping one of more of your vehicles is complete worth it.  Here are some reasons why:

  • Less Stress
  • Drive together as a family instead of separately
  • Not putting more miles on your vehicle
  • Not having to worry about being stranded on the side of the highway
  • No oil change afterwards
  • Actually can save you money by transporting a car

We already talked about the stress factor above, so we will move onto bullet point #2.  Driving separately is a pain in the you know what.  Having to stop more often to fill up gas tanks, being away from your spouse and/or kids, no one to take over driving if one gets tired, etc..

A huge plus of having a car shipped is the next three bullet points, not putting the extra miles on your vehicle, not being stranded and no oil change.  Is you’re moving from Florida to Washington State that is like 3300 miles.  That is like 2-3 months worth of miles that you’re putting on your vehicle in a mere 2 or 3 days.  On top of that, being stranded on the side of the highway is horrible.  Driving your vehicle that long of a period is putting too much stress on your vehicle and problems could occur.  Then when you arrive to your new home you’ll have to get an oil change and that is the last thing that’ll be on your mind when moving.  Not having your oil changed properly can cause havoc on your vehicle.

The last bullet point is that transporting your car could actually save you money.  There are cheap car shipping options available, you just have to find the right company.  Maybe it is uShip, maybe it is Car Shipping Carriers, maybe is is another competitor.  By finding the right company you can save yourself having to spend the money on gas, food, hotel, oil change, possible car repairs, etc..

Having your car shipped versus driving it is worth it usually 9 times out of 10.  It is an option that people should take a hard look at and consider.  Everyone wants to make their lives easier and Car Shipping Carriers is just the company to help achieve that when you need to have  a vehicle shipped.

Filed Under: Car Shipping Industry, The 411

November 25, 2015 By Nicholas Dutko

December 20th 2015 Is The Cut Off Again This Year

It is the holiday season and people are rushing to get everything completed before it is too late.  It is always a mess when people wait until the very last minute to get things done, especially during the Christmas holiday.  Many times people are disappointed or stressed to the max.  Car Shipping Carriers wants to ensure that people looking to transport their car from one state to another is not waiting until the last minute and are not stressed out.

Normally the date of December 20th is the extreme last day before the car shipping industry starts coming to a halt and there’s no longer cheap auto transport. If you want to ship a car to another state and the vehicle is not picked up by December 20th, it usually means that it won’t get picked up or it is going to cost more money.  The reason for this is because of Christmas.  Everyone wants to be home with their family for Christmas and that also includes truckers.  Truckers are people too and they have families just like everyone else.  This time of year is one where many truckers take an extended vacation and stay with their family from Christmas until after the New Year.

Over the last few years it has been roughly 1/3 of the truckers in the car shipping industry stayed working through the holidays.  These truckers are also smart because they can demand a higher premium because they know there are not many truckers out there working.

There are people who will buy a car for a spouse or one of their kids as a surprise, people who need to move for a certain purpose or others who are buying a car for themselves.  All of these scenarios happen each and every year and we stress to all of our customers how important it is to get this done early so everyone can have a Merry Christmas or any of the holidays that people celebrate during this time of year.

This year if you are looking for cheap car shipping or something more affordable, please make sure that you have it completed by December 20th.  We cannot stress this enough.  Prices will go up after this date and will stay that way until the first week of January.

Filed Under: Car Shipping Industry

November 24, 2015 By Nicholas Dutko

Auto Transport Broker Fees Explained | Why So Expensive

Some people may already know, but others are in the dark about a key fact within the car shipping industry.  Over 95% of the time the customer will be working with a car shipping broker and not the actual truckers. The reason for this is because majority of the trucks on the road are small businesses.  These truckers may only have one of two trucks within their business, they do not normally have websites and they are not a nationwide company.  As a trucker in the car shipping industry they want to work a certain route or area and that is basically all they will do.  For example, Trucker A owns his own auto hauler and he likes to transport cars between New York and Florida.  So, he can help customer within that route, but nothing else.  People like things being familiar so it is normal for a trucker to like to do the same route again and again because it is familiar to him and he can plan out other events with his or her family around the schedule they set forth.

This is where auto shipping brokers come in. A broker can gather customers from anywhere in the united States and find them the proper auto transport company that does their route.  So, why does a broker charge so much for their work?  It isn’t that hard.

Realistically, the job isn’t too difficult, but the overhead is what really makes for the costs that they have to dish out to the customers so high.  Lets go over what a broker needs to perform their job properly and then we’ll dive in to the costs of each.

Auto Transport Brokers Costs

  • Software for customer management
  • Load Board to find truckers for their customers
  • Office space, computer, phone
  • Credit Card Terminal
  • Federal Bond/Trust
  • Website
  • Customers

We will start off with the software first.  Majority of brokers use the same software called jTracker.  It starts at $200 a month and this is where a broker can have a customer management system to perform their job quickly and professionally.  Each employee costs an additional $50.

The next thing a broker needs is a load board to find right car movers.  Nearly every company uses Central Dispatch to find the truckers.  This starts at $79.95 per month for 30 vehicles to be posted per month and it goes up from there.  Most companies are in the $250 or higher price range per month.

Next would be an office space, computer and phone.  Sure, people can do this from out of their homes and many do unless they have employees.  With employees you’ll need an office space which can be anywhere from $450 a month to $2000 depending on how much space you need.  The computer can be a personal computer, but with employees you’ll have to provide a company computer which can cost $250 – $1500.  Then a phone system is needed.  Many just use their cell phones because they have unlimited minutes, but with employees a company will have to provide a phone system.  Many within the industry use Ring Central for their phone system and it costs about $100 a month and then $5 per additional phone number.

A credit card terminal is a must have in this industry because that is how they get their broker fee from their customers.  Most of these terminals are about $30 a month and then anywhere from 2% – 3% per transaction.

To be an auto transportation broker in the United States you have to have a Trust or Bond.  Federal Regulations just passed a few years ago that requires brokers to have a $75,000 coverage policy.  This runs companies about $350 a month to keep paying on it.

A website is another factor in this cost.  A website to be built from scratch is starting around $750 and goes up fro there depending on how much “stuff” they need in the website, how “pretty” they want to make it and how good the developer building the website is.  On top of building the website they will also have a server fee every month from a company like GoDaddy who will host the website for people to go to.  That starts at around $5 a month for  shared server or $150+ for a dedicated server.

The last piece of this puzzle is customers.  Obviously a company needs customers.  There are three ways to generate quality customers in this industry.  A company can buy auto transport leads, they can perform their own paid advertising through Google, Yahoo and/or Bing, or they can pay a company to perform SEO services to generate their own traffic.

When a company buys leads they usually come in packages of 500 or 1000 leads per month and can run anywhere from $1 to $4 per lead.  For this demo lets just cut it in half and say $2 per lead and this company is going to buy 1000 leads.

Also the company that does paid advertising is dishing out about $4 per click to their website.  Statistically it takes 3 or 4 clicks to generate a lead.  That means it costs that company $12-$16 per customer.

The last way a company can generate leads is hiring an SEO company which costs about $50-$100 per hour.  A quality SEO campaign will be at least 20 hours per month, but great campaigns with be 40+ per month.

Lets Add This Up

Lets add this all up and see what a brokers monthly cost is.  We will strictly just use a single person that has no employees to keep the costs as low as possible.

jTracker $200

Central Dispatch $80

Home Office/Computer/Phone $100

Credit Card Terminal $30 + 2%-3% fee

Federal Bond/Trust $350

Website & Hosting $10 + cost of website

Leads $2000

That means this company has a total cost of $2,770 + the cost of website + 2%-3% credit card fees.

If this broker is going to make money to live and provide for their family they will have to do some great work.  So, a normal conversion rate on theses leads he is buying is about 5%.  If he purchased 1000 leads he actually booked 50 of them.  A normal broker fee is anywhere from $150 – $200.  So this means that this company grossed $7500 or slightly higher.  Then minus the monthly costs the grand total this company made was $4,730 ($56,760 per year before paying taxes).

Now Do You Understand?

Now do you understand why brokers charge you $150 or more for their services?  These people work 40-80 hours a week to make sure their customers are taken care of, but also because they need to provide for their family.  So, next time you complain about a broker charging you $150 for the deposit, please don’t be cheap and please remember this article and be more sympathetic.

Filed Under: Car Shipping Industry, The 411

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