REASON #4. Working for customers that don’t pay.
You will never be able to eliminate dead beat customers. If you fail to eliminate most of them, you bottom line suffers. Even when you successfully collect you have often spent a lot of time on the effort that you didn’t get compensated for. There has been some efforts to have on-line posting of warnings for dead-beat customers, although it is difficult to separate simple trash talk from accurate information it looks to me like this can be an effective way to vet potential customers.
Bankruptcy has been abused by many as a way to side-step paying. I think the broker bond is way too low. If they had to be bonded in excess of what they owe to carriers then bankruptcy wouldn’t be such an issue. Here is a post off of autoexpeditors forum the illustrates my point well:
Guaranteed Auto Shippers
304 Washington st.
Auburn MA 01501
STAY AWAY!!!!! They are thieves who do not pay. I filed on there bond and there is not enough left of it to pay me the $200 they owe me. They have restarted working under the name
Be very selective about who you work for, and keep good records of who you got burned by. At least don’t let them do it to you twice! I tell my carriers to keep problem customers in their data-base but rate them as “DO NOT USE” or something similar so that it will pop up if they try to ship with them again even years later.