How to populate a UK based Haulage Exchange?

[Loaddock.co.uk]

I have a long history in Haulage and have just built a uk based haulage exchange with the hope to take on some of the current "expensive" options.

My revenue model is based on providing the platform free to hauliers (most charge hauliers and shippers a monthyl fee ranging from £90 a month to about £300) and charging a 1% fee on all completed loads to the shippers (the main "free" option charges between 3 and 5%)

The site is all built, lots of dinging and dancing BUT ... with no users its just a demo site.

I find myself in a chicken and egg situation becuase hauliers wont sign up with no loads and shippers wont so up without hauliers/bids.

I have tried a few cold emails to companies in Norfolk and whilst read and clickthrough rate is high (about 60%) the signup conversion is stil nil.

I have ran through and checked that signup actually works and it wasnt just blocking signups.

I feel uncomfortable with calling as im trying to sell a dream whilst the bed is unslept in.

Anybody have any reasonable feasible ideas?

Thank you in advance.

 

[Paul Kelly ICHYB]

Welcome,

before you developed the site and was writing your business plan, what was your process for getting clients?

 

[Loaddock.co.uk]

I originally had the concept several years ago when I was still actively involved in haulage.

I now have some free time and thought I would revisit the idea however I hadn’t realised how out of touch I was with my previous contacts

 

[Ozzy]

When I started my eFiling product (back in early 2000's) I gave it away for free, entirely free, to build up the critical mass. My suggestion would be to consider the same, so that folks have nothing to lose by signing up - it costs them nothing to join and nothing to use it, so they can try it completely for free.

Then when you have people using it on a regular basis start to bring in the charging options. You'll have a massive drop out when you start charging, that is to be expected, so wait to start charging until you have a substantial mass of users so that losing ~50% won't cripple the business model.

Just an idea

 

[Loaddock.co.uk]

When I started my eFiling product (back in early 2000's) I gave it away for free, entirely free, to build up the critical mass. My suggestion would be to consider the same, so that folks have nothing to lose by signing up - it costs them nothing to join and nothing to use it, so they can try it completely for free.

Then when you have people using it on a regular basis start to bring in the charging options. You'll have a massive drop out when you start charging, that is to be expected, so wait to start charging until you have a substantial mass of users so that losing ~50% won't cripple the business model.

Just an idea

This is the current method I’m trying to push, give them value for free until they almost rely on it.

 

[ctrlbrk]

This is the current method I’m trying to push, give them value for free until they almost rely on it.

You could also keep the main product free but then charge for some premium features (which obviously need to be valuable enough to attract customers).

 

[Loaddock.co.uk]

You could also keep the main product free but then charge for some premium features (which obviously need to be valuable enough to attract customers).

I had considered this but the value adds would be hard to provide without accumulated data.

 

[Ozzy]

I had considered this but the value adds would be hard to provide without accumulated data.

Just jumping back in to add that this would also be why IMHO you'd be best to just give it away for a while, to build that mass and get that data. So long as you have the pockets to sustain it running for free (costing you money) for a while, and that while to be as long as a year or so.

 

[Gecko001]

I suspect that reliability is key to this type of service, and perhaps haulage companies think that a free service cannot give them that.

 

[Gecko001]

Have you thought about targeting owner-drivers?

 

[JEREMY HAWKE]

It's not a good idea with out considerable investment for the best software and user experience along with a massive marketing expenditure
This sector is over subscribed with the best in the industry being Haulage exchange who have literally invested millions over the last 25 years .
Then you have the load boards of the likes of Baronwood who have their own loads and good payment terms for hauliers.
The business model is unattractive to professional hauliers who would much rather have a monthly fee to reduce admin in their traffic and accounts offices .
I would like to offer some positivity here but I have seen so many of these exchange sites start and fail since the beginning of the Internet
Just for reference we are members of Same Day Courier Network and I like this platform. Reminding me that paying a commission on each job would be a nuisance

I don't aim this at you but I want the usual suspects on here to understand this .
I have seen so many people believing that their experience in the Haulage industry brings them the skills to achieve their wishes but I need good sales people not lorry drivers

 

[Loaddock.co.uk]

It's not a good idea with out considerable investment for the best software and user experience along with a massive marketing expenditure
This sector is over subscribed with the best in the industry being Haulage exchange who have literally invested millions over the last 25 years .
Then you have the load boards of the likes of Baronwood who have their own loads and good payment terms for hauliers.
The business model is unattractive to professional hauliers who would much rather have a monthly fee to reduce admin in their traffic and accounts offices .
I would like to offer some positivity here but I have seen so many of these exchange sites start and fail since the beginning of the Internet
Just for reference we are members of Same Day Courier Network and I like this platform. Reminding me that paying a commission on each job would be a nuisance

I don't aim this at you but I want the usual suspects on here to understand this .
I have seen so many people believing that their experience in the Haulage industry brings them the skills to achieve their wishes but I need good sales people not lorry drivers

This where I’ve kinda thought ahead. The commission billing is automated with the invoice going out a few days before the commission is taken.

In terms of admin we auto generate consignment notes and are building the option for auto transaction invoicing along with integrating within Xero and quickbooks in the next few weeks to get started.

 

[Lawson@CBF]

I looked at operating a similar offering and had loads of 'grand plans', software partly built, but other parts of our 3PL business took precedent at the time. The free option is the way forward.

But I'm happy to share our mistakes and ideas if it helps