Expense Spreadsheet of 2010

Discussion in 'Ask An Owner Operator' started by Turn3, Oct 28, 2009.

  1. Grumman

    Grumman Light Load Member

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    120
    Nov 7, 2009
    Locust Grove, GA
    0
    Hey Turn 3, sorry I didn't answer your reply about the Maine tags yet. Just got back home, don't really have much time on the road to get online. Just Google "registering trailers in Maine" and you'll come up with a slew of choices. Most all are agents for Maine and their fees can vary as the are for profit providers. You'll have to send in a notarized power of attorney, copy of your title or lease?finance agreement. You can also get a packet from the state which will take a little longer but cost the least. You can get a five year tag for a little over $100 with some of the third party outfits.

    Now a word on the FSC. True, most all broker loads do not have a seperate FSC detailed. Most shippers want to know how much to move it. They don't care or want to deal with a break down of miles, base linehaul, etc. The exceptions would be DOD loads, some larger contract brokers, etc.
    If you have your motor carrier authority you should be striving to market directly to shippers and eventually stop working for brokers. You will come across shippers that will request a "tariff" sheet from your trucking company. Most of the larger shippers want to analyze your base rate and will either accept your FSC or place their own in place. They want to project shipping costs a year out or so (extremely difficult to do these days). If they employ and analyst in their traffic get ready to have your tariff torn apart. Of course this all depends on what is going on at the time. If trucks become tight you'll be in the superior position of negotiations.
    I would suggest developing a tariff based on in and outs to various regions. An easy way is to set up an Excel spreadsheet and have the FSC lisited seperatly where you can can adjust it weekly when the DOE publishes their numbers. Just Google "DOE fuel index". Develop a FSC based on a base of $1.25 (makes you a little more competitive). Publish a mileage based surcharge for truckload shipments and change to a percentage for LTL shipments.
    Once you do this correctly you can update your rate sheet in seconds and it will be easier for your customers to calculate what their shipping may cost. Do not forget to keep tabs on supply and demand factors (truck supply) to adjust base rate. Try to be competitive but don't leave money on the table. You're in business to make a profit and stay in business.
    Lastly, don't base your rates on what brokers have been giving you. They are giving you wholesale rates. You need to bill retail.
     
    Turn3 and ironpony Thank this.
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  3. Turn3

    Turn3 Light Load Member

    120
    36
    Oct 15, 2009
    Pacific, Missouri
    0
    Grumman.. thank you very much for the follow up and great information.

    We already have a spread sheet set up with our company operating expense and it would be fairly easy to turn it into a Tariff Sheet. I also need to figure out the different regions. DOD is also another area we want to get into.

    Thanks again.
     
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