From my experience, being an agency driver is awful. Your working week and wage is in the hands of some sales rep that doesn’t give a toss about you or your career and has no or a very limited amount of experience/knowledge of the Transport industry. They are generally poor payers aswell but charge companies quite large rates per hour for their services.
Is it a realistic and viable option to sell yourself as a 1 man/woman band agency? My idea is to work for myself representing myself as a reliable, trustworthy and professional HGV driver that is available to cover for any sickness or holiday absence. I would target small to medium sized companies with say between 1-10 drivers and look to contact as many companies as I can within a 25 mile radius.
The main benefit to said companies would be cost, I have used many agencies to cover for the drivers I have when they are absent. We get charged on average £11 per hour for a Class 1 driver based on a 8 hour day, overime is usually at time & half so £16.50 per hour for anything over the standard 8 hours. I have never had a driver finish within his or her standard 8 hour day so lets say that they do 10 hours a day, that costs the company £605 for the week’s cover. As I do not have the overheads that a normal agency has, I’d be able to charge the company less, for example £9 per hour based on 50 hours and anything over the 50 hours is charged at £12 per hour saving the company over 25% in the cost for covering their driver for the week (based on hours working in the example).
There are other benefits like having the same person every time you need cover and also having someone who actually cares and would make an effort to do the best possible job they can do in the most efficient manner possible. However, there are flaws. Flaws such as brand/reputation, availability should a customer need you in an emergency due to a driver ringing in sick and you’re already committed to working elsewhere, having to do everything yourself driving, marketing, gathering new business etc.
Are there any obvious barriers that I need to consider, for instance insurance, tax etc?
get faxing and emailing all your local hauliers. I made a tidy living from freelancing. I started on an agency, the pillock at the agency happened to mention that several customers had started asking for me personally, so that sort of done the advertising and made my mind up for me (that and being royally shafted by the boss of the agency one day). I just approached the customers directly and offered my services and had more work than I could shake a stick at - you’ll be able to significantly undercut what the agency charges them, yet still charge a lot more than the agency paid you. Don’t get too greedy though, pitch your rate just right and you’ll be quids in and never out of work.
Don’t worry too much about turning work down if you’re busy. Your customers will be well aware of your situation and that you have only one pair of hands. At the end of the day if you’re significantly undercutting the agencies (and you certainly will be) they’ll phone you first every time.
Sell yourself on reliability and professionalism, look after the vehicles you’re driving and build a raport with your customers and I can’t see why you won’t make a killing.
Don’t forget there’s builders merchants etc as well as haiuliers that will use you. Think of everyone in your area that uses a HGV for whatever reason and sell yourself to them.
Derf:
get faxing and emailing all your local hauliers. I made a tidy living from freelancing. I started on an agency, the pillock at the agency happened to mention that several customers had started asking for me personally, so that sort of done the advertising and made my mind up for me (that and being royally shafted by the boss of the agency one day). I just approached the customers directly and offered my services and had more work than I could shake a stick at - you’ll be able to significantly undercut what the agency charges them, yet still charge a lot more than the agency paid you. Don’t get too greedy though, pitch your rate just right and you’ll be quids in and never out of work.
Don’t worry too much about turning work down if you’re busy. Your customers will be well aware of your situation and that you have only one pair of hands. At the end of the day if you’re significantly undercutting the agencies (and you certainly will be) they’ll phone you first every time.
Sell yourself on reliability and professionalism, look after the vehicles you’re driving and build a raport with your customers and I can’t see why you won’t make a killing.
Don’t forget there’s builders merchants etc as well as haiuliers that will use you. Think of everyone in your area that uses a HGV for whatever reason and sell yourself to them.
Thanks for the reply.
Are there any insurance issues to consider?
I have a list of rates that we get charged for agency cover from around 15 local agengies, the rates I have used in my original post are very competitive, in your opinion are they competitive in a potential customers eyes or would they look to save more than that?
Herongate gave me some good advice in one of his postings when helping me to decide whether to go back to full time driving.
I still haven’t as I’m sorting my finances out to have a year’s worth of household bills (inc mortgage) saved before I leave the world of construction behind for good. So I don’t get caught out by shyster agencies and companies alike. I will get there one day though.
Gave you this link so you can find his username easily and PM/email him for advice. He did a big detailed post on my OP and that’s without asking him for advice. And he didn’t come over with some of the usual BS you can hear on here.
Not sure if I can help anymore but if you think I can don’t hesitate to holler! But don’t be knocked by any haters on here if you think you can do it go for it bud!
No reason why you shouldn’t, but whilst as others have said you will have some advantages over an agency, there are downsides too.
If you go sick, injure yourself or your car breaks down, you haven’t got any backup. If an agency driver fails to show, they get another one from the same agency; if you do they go to another company. Just like them you are as good as your last job.
You need enough customers with enough drivers to keep you going every week; and ideally you need a good mix who have busy peaks at different times. For example builders merchants are very busy in summer, dead from October onwards; my own industry (animal feeds) is exactly the opposite.
You can also forget about having your holidays when you feel like it, your probable window will be January-March which is when agency work usually dies; not good if you have school-age kids.
As others have said you need to be flexible. Derf’s advice is very sound but I’d qualify one bit; whilst he is right to say that you shouldn’t be afraid to say no, it’s not wise to do that to the same company too often.
You will soon find out that being effectively your own consultant means that you end up with the ■■■■ end of both jobs some days!
Ideally you don’t want to be working odd days for any company that might give you an unscheduled night away. For obvious reasons it can play hell with your planning!
Go the self employed freelance way and stick it to the money grabbing agency.
Charge about a quid less an hour than the agency does (if you can find that out). As for the insurance question any company you drive for must have it’s own insurance in order for you to drive but if it puts your mind at rest you can take out your own.
I wish more drivers would do this and get rid of agencies for ever.
Pat Hasler:
As for the insurance question any company you drive for must have it’s own insurance in order for you to drive but if it puts your mind at rest you can take out your own.
He’d have to charge a ■■■■ sight more than you’re suggesting to be able to take out “any vehicle” insurance. Do you seriously think that agencies insure the vehicles for clients if they’re supplying the driver? What happens in practice is that the client tells his insurer that he’s using a driver from XYZ Agency, which usually (unless the client is a very small company) is enough. In the OP’s case, being that he’s a sole trader he’d probably have to fill in “new driver” forms at some of his clients until he got himself established. This is one of the aspects that most of you agency-haters overlook when you’re ranting about banning something that’s been there for centuries.
OP would also be wise to take out public liability insurance, same as anyone would if they’re self-employed in a serice industry.
a liability insurance or public liability insurance would be the only one worth looking in too , i would have thaught as well as a good insurance for yourself to cover earnings , never know when your going to be off, through injury/sickness ect
the one i used in the past are/were good and dont mess you arond most importantly when you have other problems
I have been working for 4 companies for the last 3-4 months. I make sure they know that IF they WANT me to book early to avoid diss appointment.
I have a personal health, payment and income protection policy that costs about 35 quid a month but is worth it as it pays out straight away and top whack. If I had the hours I could work 8-10 days a week most of the time.
Quietest week I’ve had was 3 days but that was in the middle of bank holidays. I make sure the company know it is THEIR insurance being used.
Good luck, don’t spread yourself TOO thin as most places will probably want you for at least 1 if not a couple of days a week.
Thanks for all the comments and info, I’ve not taken the plunge as yet as it was just an idea.
For the record I’m not actually working for an agency as I’m employed as a Warehouse and Transport Manager however, I can’t stand my job and prefer to be out on the road but the trouble is that there aren’t that many jobs about that are paying well. I personally think that below £9 per hour for a class 1 driver is a bit of a ■■■■ take and was thinking of a way I could command that price instead of applying for jobs that are paying say £7.50 ph.
Got my email ready to go to potential customers, will look to contact between 50-80 companies and will see what kind of a response I get.
RACHACE:
Thanks for all the comments and info, I’ve not taken the plunge as yet as it was just an idea.
For the record I’m not actually working for an agency as I’m employed as a Warehouse and Transport Manager however, I can’t stand my job and prefer to be out on the road but the trouble is that there aren’t that many jobs about that are paying well. I personally think that below £9 per hour for a class 1 driver is a bit of a ■■■■ take and was thinking of a way I could command that price instead of applying for jobs that are paying say £7.50 ph.
Got my email ready to go to potential customers, will look to contact between 50-80 companies and will see what kind of a response I get.
£9 / hr self employed isn’t much different to £7.50 pay as you earn.
I really think you need to re-calculate your rates to be honest. Most agencies pay £8 ish + time n half after 8hrs as a rule, + holiday pay + slightly higher rates for nights / weekends etc…
If you’re going to go the self employed and self promoted route, it’s got to be worth it IMHO.
Good luck with it though, me and a couple of mates were thinking of starting our own agency sort of thing a few years ago as we’re all manual coach drivers + c+e drivers and 2 of us are ADR, so could market ourselves to both hgv and bus / coach firms, but we all ended up in employed jobs and took the easy route
