Running for a small co that does a lot of local steel freight. I tried to hire on as a O/O and found out real quick that it wasnt going to be worth it because the rates are just not good enough. So I decided to run their equipment until I get more experience, figure out what my exact cost per mile is to run and get the correct insurance. What Im finding out is this guy cuts his own throat on rates just to keep the $ coming in. Cant seem to schedule for anything and takes loads that barely cover his costs, just because he's so afraid he's going to lose a customer.
So far the only thing Ive learned is what not to do, which is invaluable. I could go on and on, but its besides the point. Im new to this industry and am willing to put in the time to learn what I need, but as a past business owner (construction) its driving me up a wall to see someone run a business so poorly, yet still make $.
Am I crazy? Or is this going about it the wrong way?
Discussion in 'Expediter and Hot Shot Trucking Forum' started by HillbillyDeluxeTruck, Aug 27, 2014.
Page 1 of 2
-
-
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
-
I've never understood why anyone would want to keep a customer who is unwilling to pay you enough to operate profitably hauling their freight. Sorry, but if you expect me to operate at a loss, your freight can sit on your dock 'til you change your mind.
bigdogpile, Kickstand-117, mickimause and 2 others Thank this. -
Hi Hillbilly, unfortunately, many smaller companies have taken a "wait and see" attitude. Rather than pull the plug, they stay with an account, hoping things will turn around. Sadly, I see an end to smaller companies, as things will never turn around, and it comes down to who can haul it the cheapest, regardless of how long someone gave them decent service.
-
Yeah it's crazy how some people feel married to a customer. Dry van is so competitive every shot I ever get at some contract direct it is always about price with those people and I'm never cheap enough. Local run was offered up. 3 loads a week 474 miles on the round. I offered bottom of the barrel (for me) $2.48 a mile including surcharge at current prices gross rate (that's before 11% came out of it for the company I'm leased at). The winning bid was $1.69 a mile. What they do is put a day cab tractor on it and pay the driver $14 an hour on a cheap rate like that...People with spot willingly pay most times whatever it takes when they need the trucks. It's like things are backwards from what everyone always says it should be. The randomness of spot sucks but I'm not willing to work for nothing.
Lite bug Thanks this. -
as a pig in mud that he he gets to go home every night. -
Yeah and he's not paying for fuel, tires, parts, etc. He parks the truck in a droplot and goes home punch in, punch out. Home frequent is a big selling point just ask any container hauler and that's how they always justify working hard for nothing. The contractor ones anyways. I think the company driver container haulers do ok. Big companies can run for low rate like that. One truck or small fleet guys are kidding themselves.
-
Guess Im glad Im not the only one seeing this. I feel as this guy is flip flopping on his rates. Sometimes he charges per mile, other times its a flat rate and its always bottom of the barrel pricing. Now Im stuck running his flatbed pick up on an over night run hauling 500lbs. thats 30ft long. On top of that I cant even load until 3pm, instead of me loading early this morning, and doing a one day turn around. After all said and done, I'll make just over $200 and he'll make less than that after fuel.
Guess thats what I can expect from a guy who doesnt have a CDL or know how to follow the FMCSA rules. -
all the above is true
but none of it proves your not crazy -
Something I never understand is you can not tell then anything. When I started out I was leased on with someone who did the same thing ( they are no longer in business ). I got my own numbers, work with brokers who have good freight. I do not have any direct freight ( not sure if I want any as I can turn it off at anytime ) keep doing what you are doing learning when you are ready do your own thing.
-
I don't get it either.
I talked to JB, CH Robinson and Coyote, and they all want it done for less than it costs and act like they are handing out gravy by the bucketload!
If the truck or the fuel were free then I can see a profit, but it's insane.
Some expect it to be done for less than the fuel, or want it delivered 2 hours away but you have to wait 36 hours after you arrive to unload!
The only way I could have a truck make anything is to have it rack up HUGE MILES PER DAY, and once the truck expences are paid for then the profit begins.
I also hear (very reliable source) that hourly rates some of the larger companies pay for a driver is something I wish I could earn.
And it seems the better, or harder you work, the less they want to give you.
I have an operating authority but only for us to do local, small deliveries.
If I can't make a decent profit, how the hell do you hire on an Owner Operator and send them out?
However, when it's -18 degrees and nothing Diesel powered will start or run, then they are willing to hire us at a decent rate, but where do they think I'm going to get a truck from, NOTHING WILL START OR RUN AS IT'S TOO COLD!
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
Page 1 of 2