Rates and Expenses.....your thoughts

Discussion in 'Ask An Owner Operator' started by Long FLD, Mar 26, 2015.

  1. Long FLD

    Long FLD Road Train Member

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    The livestock rates have dropped some with lower fuel, which I expected. For January I was at $2.16 for all miles and for Feb I was back up to $2.24 (less deadhead). My truck is an '03 and my trailer is an '09. It costs me anywhere from .97 to 1.06 a mile to run my truck down the road, not figuring my wages. The 9 cent swing is how much my fuel can swing because of all the holes in my trailer.

    Where I'm going is here....recently I was involved in a discussion with a fellow that had payments on payments. $160k truck and a $90k trailer. It's America, and that's his choice. His view was that we all need to stick together and not haul what he considered to be cheap loads. In this case it was $3.30 a mile. My view was if I hauled the $3.30 load I would be all in for $2620 on 970 miles and I'd be right back at the house. He seemed offended when I told him I really didn't feel I should run my business based on his expenses.
     
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  3. Dednutz

    Dednutz Light Load Member

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    This ships going down. Gather all you can...
     
  4. rollin coal

    rollin coal Road Train Member

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    Everybody does it different. For $3.30 a mile outbound I'm most definitely not going back to the house empty and turning it into $1.65 a mile for the round. If I had to drive out of route to swing by a parts house or something it eats into it even further. If that's how you run your truck that's your business but for me that rate just doesn't justify going back all the way empty to start over again. Of course cattle business is different. Not like you can get a load of cows outbound then go a few blocks from delivery and reload hogs going right back.

    In my case there are options for reloads if I took a $3.30 outbound on 900 miles so it would be crazy to not reload going back. I justify going out however far and right back at $5 per loaded mile. That would be on the low end with minimal deadhead. My take is 89%. I can tell you if I were independent taking 100% and in the cattle business going out and right back there is no way I'd be under $5 a mile minimum on any length haul. But I have no problem with someone who does it differently. If that driver wants to stick together and be of one mind I say get a union job. Otherwise I'm happy to do my thing just leave me the hell alone and he can go do his.
     
  5. Casual Trucker

    Casual Trucker Medium Load Member

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  6. Long FLD

    Long FLD Road Train Member

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    Rollin Coal I was tired and wasn't clear. I wasn't taking the load to get home. I'd already done my southbound load and this was a short bounce to load back north and unload right where I'd be starting my circle all over again. What we do is kind of like a triangle only its a bounce in the middle instead of a short haul to get to the next load. Fat cattle south then farther south or southeast to load feeders coming back. The days of one-way and bounce home cattle hauling went away a while ago unless you stay fairly local.

    I can understand his point. I figure it costs him over .50 a mile more to run his truck because of payments, but that was his choice to finance it all. And with fuel going from $4 to $2.50 of course the rates will drop. Rates are going up in other areas because they've been relying on the fuel surcharge for so long.
     
    Last edited: Mar 26, 2015
    double yellow Thanks this.
  7. wore out

    wore out Numbered Classic

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    His payments are not our problem, but I do see the logic in not taking cheap rates as it could help us all. Only problem is who decides what's cheap? If it's in a range that you can make it work I say get after it. If you don't someone else will. This situation is a lot different from finding out what someone bids a haul for then runs over and cuts it a dollar to get it. That's what I'm seeing right now is fly by night guys that believe there is easy money in livestock so they buy up some junk and make a mess of things.
     
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  8. rank

    rank Road Train Member

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    I am of the opinion that (for a given type of freight) everyone has more or less the same expenses per mile. Say for example, $1.80 including all payroll expenses.

    Anything above that amount is luxury or the price of education. Anything below that amount is payback on years of experience, cost of capital, free labor etc.

    Most guys don't pay themselves a fair wage for accounting, payroll, truck maint etc. If they did, CPM would go way up.
     
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  9. wore out

    wore out Numbered Classic

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    I'm not sure how much I'm worth in the accounting department, but even I can't afford to bill me for all the repairs I do. lol I sure do dread going home been out 2 weeks no telling what all they have tore up.
    I agree those jobs should be figured in the CPM figure, but all I usually do is pay myself 33 percent and call it good for all of it. That may change with this new trailer payment first time I have had a payment in 8 years. Takes a little getting used to
     
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  10. Old Man

    Old Man Road Train Member

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    That is called a "Race to the bottom"
     
  11. BigJls1

    BigJls1 Medium Load Member

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    how come i can call 10 plumbing companies and get any where for $55 an hour to $95? Some of the $55 hour guys have nice trucks and are well spoken. some of them are not same goes for the 95 hour guys.

    why do dealers charge $135 an hour and right up the street that shop has better employees and only charges $75.

    COULD IT BE that some have less overhead and waste than others?

    EVERY trade in america has rates all over the place..

    you get the point. only in truck driving is if "your hauling for less than 2.50 a mile youll go broke?

    same guys that always complain about rates to cheap will always shop around for the best deal on tires tho? how can one tire shop charge 200 less for the same goodyear? that driver would never pay more at that shop.
     
    Last edited: Mar 26, 2015
    dannythetrucker and Long FLD Thank this.
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