Bill and Ben were best mates who had become friends while working together for the same small to medium truck operator in Melbourne’s western suburbs.
Their boss was an astute and careful operator who’d built his business up over about 20 years. About 20 trucks and 30 trailers, a mixed fleet of fridge vans, tautliners, and even a couple of flat tops and tarps for the purists among us.
Bill and Ben were bloody good drivers and employees and their boss really appreciated them, so much so that when they had each lost their licenses over the journey, through demerit point accumulation the boss had kept them on the payroll by moving them into the operations office while their points reset.
It was during this time in operations that they both came to a very dangerous conclusion. They had learned more in a couple of months about how to run their boss’s business than he had learned in 20 years.
It was probably no surprise then at the Christmas party that year, late at night, sitting at a table in the back of the room, after having enjoyed plenty of their boss’s generosity in sugar cane champagne, along with their families, the conversation turned to “Wouldn’t it be good if we benefited from all that work we’ve done for the boss this year?”
When an impromptu New Year’s Eve party was held at one of their homes that conversation continued and grew legs until one of their wives made the inevitable remark: “You two should buy your own truck and go into business together!”
When early in the New Year the perfect truck appeared on Facebook marketplace the plan was set. It was about an 8-year–old Cascadia that had only done about 400,000km……on its second rebuild!
The previous owner had spared no money on maintenance. It had chrome naked lady mudflap weights, a wood grain steering wheel and a gearshift extension that would skin your knuckles on the roof lining. Just like Bill and Ben this thing had plenty of attitude.
A call was made to Frank the Friendly Facebook Finance Finder. Frank rocked up in his new Tesla, wearing the Rolex he had bought from a bloke on the beach in Bali. Frank quickly worked out that Bill and Ben were in a really strong financial position.
They were both about 12 months into a 30-year house mortgage and if they maxed out their credit cards and drew down whatever super they had left after putting together their house deposits they would have no trouble putting together a decent deposit on the Cascadia.
Frank convinced them to talk to his cousin Tony, who was about three years into his online accounting degree to help put together a business plan. Turned out Tony knew his stuff.
He had them sign contracts with a couple of the major freight forwarders which guaranteed them loading to Queensland, at the forwarder’s discretion!
These contracts clearly outlined, in about 120 pages of legalese all the penalties that could be applied for non-conformance, all the KPIs and all the reasons payments could be delayed or denied.
But the backloading strategy was pure genius. Tony had emphasised the importance of fast turnaround and fast cash turnover. Bill and Ben had discovered a niche whereby you could buy watermelons in Queensland for $1 each.
So the simple plan was, load as many melons as possible, get back to Melbourne as fast as possible and sell the melons for $1 each. Guaranteed turnaround, guaranteed turnover, what could possibly go wrong.
The first trip was a stunning success. Apart from a couple of blown trailer tyres near Boggabilla and a suicidal kangaroo between Forbes and Wyalong.
They had set up their depot and watermelon stall at the back of the parking lot at the Ring Road service centre and when the word spread they were swamped with customers. Sold out in 24 hours, so with pockets bulging with cash they set off again. Rinse and repeat, rinse and repeat.
Soon enough it was tax time so back to see Tony, who by now was fully qualified. Tony was both impressed and a little concerned. The upside was that our boys had no tax problem but they urgently needed to increase their revenue.
That night they spent hours deep in thought sitting on deck chairs beside their truck in the Ring Road parking area with a carton of XXXX. By the morning the solution and answer was clear. They needed a bigger truck! Not just any truck mind you.
They ordered the latest 9-oh with every factory option. Then off to the paint shop for paint, lines, and scrolls and an airbrushed watermelon mural.
Then off to the bling shop for sixty grand in shiny shit, because as everyone knows, to be taken seriously in this industry you need to have won a $50 trophy at a truck show or been Rig of the Month in an industry magazine.
Time to see Frank the Finance Finder again who rocked up in his new Dodge Ram, wearing the obligatory Fitbit watch since he’d become a gym junkie. Frank looked over the eye-watering quote and casually added another $120,000 to the bottom line.
That added $100,000 to the trade in and $20,000 for Frank’s fee. Kerching, finance approved. With a new set of A-double trailers, B&B Watermelon Logistics were away.
When they pulled into their new depot at the parking lot at BP on EastLink in the leafy eastern suburbs with their first load, the 9-oh didn’t just arrive, it announced itself. Affluent customers surrounded the 9-oh with fistfuls of cash and purchased multiple watermelons.
The crowds even attracted a visit from Jaycee, the industry social media influencer, who took plenty of photos, selfies mostly and posted them on her story on Facebook. By the following morning our boys knew they were on the right track, 4356 likes ❤️ , no actual profit yet but it couldn’t be far away.
Tax time came around quickly again. Tony had moved out of the spare room at his mum’s house and into plush offices in the city. Tony was impressed. Revenue had doubled, along with the fuel and tyre bill.
Insurance, registration, maintenance, all doubled. On the upside, still no tax but they had to work out how to keep more of that revenue.
Tony introduced Bill and Ben to Con the Consultant. Con convinced them that they needed accreditation. Soon enough they were accredited in fatigue, mass and maintenance. They had enough certificates to wallpaper the bunk on the 9-oh. Now they could work harder, load heavier and do more trips.
Con brought Terry the tech guy onboard because after all, you can’t manage what you can’t measure! Terry set our boys up with tracking, cameras forward and rear, electronic diaries, vibrating seats and enough data collection for a moon landing.
They could tell the National Heavy Vehicle Regulator where their rear left trailer wheel was in real time. They just still couldn’t see where profit would come from.
Bill and Ben worked harder than ever. More loads , more compliance, more transparency and more overdraft.
It was late one night in the middle of the Pilliga , where some very strange things have been known to happen that Ben sprung upright in the bunk and screamed for Bill to stop “right bloody now!”
Luckily Bill remembered that he had just passed a green reflector on a guidepost so, courtesy of Rod Hannifey, knew there was somewhere safe to pull up.
Ben told Bill that he’d worked out how to make money and the first thing that they had to do was get rid of the truck. “ Have you lost your freaking mind? How do we make money without a truck ?”
Ben said: “Think about who’s actually making money. The truck dealers and fuel companies are making heaps,the tyre,insurance, finance companies are doing all right, the consultants and tech providers. Jesus Christ Bill, even Frank and Tony are kicking goals! Even bloody Jaycee is doing better than us. I reckon we rent an office in Dandenong, get a couple of computers, a couple of fancy phones, a couple of new utes and set ourselves up as freight brokers.”
“What about our bloody watermelons?” asked Bill.
Ben replied: “That’s the kicker Bill. There are blokes just like us everywhere looking for loading out of Queensland. We get them to buy and load the melons and when they’re sold we take 50c a melon commission!”
Bill stared into the dark night for a really long moment: “Jesus mate….. you just might be bloody right.”
Back in Melbourne the 9-oh was advertised on Facebook Marketplace ,with guaranteed work and sold quickly to two mates who were working at a small transport company, well we know how that story goes.
Businesses boomed for Bill and Ben. When subbies came looking for better rates they knew all the answers from experience.
“We’d love to help but it’s a really tight market at the moment “ and “That’s the rate mate, take it or leave it” and “If you don’t do it mate, plenty of others will.”
The watermelons were as popular as ever!
When tax time came around again Tony was far too busy to deal with them personally so sent his understudy. Their revenue had absolutely skyrocketed. Without the truck hanging around their necks costs collapsed, but there was one small problem. They had a tax bill!
Know your true worth
Now maybe this story is true, maybe it’s not, but this part of the story is true. It doesn’t matter how big your truck is, how compliant you are, how much accreditation you hold, how much tech and data you collect and definitely how much bling or how many social media likes you collect.
If this industry can’t learn to properly value and price its people, expertise and experience, we’re destined to continue knowing the cost of everything and the value of bloody nothing!
About the author:
Chris Roe is long-time truckie, former board member of the National Road Freighters Association and co-owner of Roe Transport, a proud Victoria-based family transport company that traces its roots back to 1959.
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