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Old 11-30-2007, 04:24 PM
DesertCat DesertCat is offline
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Join Date: Aug 2004
Location: Pwned by A-Rod
Posts: 4,236
Default Re: Moral Hazard problem in a small business

Switch to all OO. Sell your existing trucks to their drivers (finance them) or to new drivers. Reduce your debt and capital costs to near zero over time. Then make the drivers bid for jobs so you earn all the premium dispatching revenues from the best jobs. Of course that's a sea change, you will have to revisit how you manage quality control and the value proposition you offer customers. But it seems like the best way to earn your highest returns on capital, minimize your own staff size, as well as your staffing, and financing headaches.

Its also something you can do over time to ensure it works, switching company trucks to OO a few at a time. That helps minimize your risks.
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