percentage pay $ per mile

Discussion in 'Flatbed Trucking Forum' started by flatbedsv77, Feb 24, 2015.

  1. flatbedsv77

    flatbedsv77 Bobtail Member

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    Feb 22, 2015
    Homer Glen, IL
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    So I have a question to throw at my fellow flatbed owner/operators. I am currently running a break even cost of $1.97, and I would like to see an average of $2.15/mile. I am in Chicago and haul regional. Being an O/O for 2 months now I have seen good paying runs locally however I cannot get loaded quick enough to get more than 1 run a day in which will not cut it. I have ran out of state and here are a couple of my runs broken down. I would love to hear if these are in range for what I am doing.

    #1) Chicago to Cambridge, OH load was tarped and I had a backhaul I picked up in Alliance, OH and delivered to University Park, IL it was also a tarped load. It was a total of 915 dispatch miles and averaged $1.82/mi

    #2) Chicago to Minneapolis, MN took 5 hours to get loaded and then I had to tarp load. Was told load payed good enough not to need a backhaul so I included miles on way back so I ran a total of 820 miles came out to $1.49/mi

    #3) picked up in Lemont, IL (tarped) drove to Chicago picked up rest of load (untarped & retarped) delivered to Imperial, PA had a backhaul I picked up in Wheatland, PA (tarped) delivered to Chicago (untarped & retarped) delivered rest of load in Schaumburg, IL. was a total of 917 dispatch miles and averaged $2.14/mile.

    I am trying to figure out if my break even cost is to high or if I need to find a different company. I rarely get tarp pay and have never seen any detention pay.
    Thoughts or Suggestions?
     
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  3. G/MAN

    G/MAN Road Train Member

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    Your breakeven is much too high. I would recheck those costs. If it costs that much to run your truck, something is wrong. You don't need to be hauling anything for less than the breakeven plus some profit. Your rates are not great, but this is winter and rates tend to be lower in winter months. Not all carriers pay tarp pay and if you haul steel, it is usually difficult to get detention. However, if I am tied up for more than a couple of hours and don't receive compensation for my time, I usually don't do business with that shipper again. I don't want anyone to waste my time. I would also have looked for something out of Minnesota or Wisconsin to get you back to Illinois or another destination rather than having to deadhead. It killed your rate with all the deadhead. Minnesota is not the best state to find something for a flat. So, when going to that type of area, you need to have a rate high enough to deadhead out and still make a fair profit. I have a friend who is leased to a carrier and he averages $2/mile for all miles. He does a lot of freight in the $3/mile range. He recently went to Birmingham, AL and had a problem getting out. There just wasn't much freight and what was available was cheap. I think he came out for $1.78. He found something a couple of hundred miles from his delvery on the other end for $3/mile. He pulls a Conestoga.

    You are just getting started. It takes time to learn the better freight lanes. I don't think that I would leave your current carrier after only a couple of months. If you want the better rates you need to be willing to follow the rates. You are in a good freight area. You should be able to stay in the Midwest and earn a good living and still be home often. All these storms will impact your ability to earn the better rates. It is just part of winter and flatbedding. I would not be afraid to sit for a day to wait on a better paying load. There is no point taking a load where you can't make a profit. This is not a charity and you should not be running to see the country. This is a business. Those who treat this as a business can do well and those who don't will usually fail.
     
  4. flatbedsv77

    flatbedsv77 Bobtail Member

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    Feb 22, 2015
    Homer Glen, IL
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    Thanks for your input. I'll have to double check my numbers for breakeven. See the problem is where I'm leased with constantly hauls out of the same place, and you sit there for 4-6hrs everytime your there. This is the main reason I am thinking about leaving. I cant constantly sit for free. I know waiting is all part of the game, but when do you say enough?
     
  5. brsims

    brsims Road Train Member

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    Aug 8, 2009
    Meadville, PA
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    Is there any way you can bring your Cost of Operation down closer to $1.50/mi.? Like G/Man said, your break even point is to high. Also, give the amount of tarping you are doing coming out of Chicago, are you hauling pipe or steel? Pipe will GENERALLY pay somewhat better, but if you are doing job site deliveries you need to be ready to run all over the tri-state region and dig up freight going back in different areas.

    Are you under your own authority, or are you leased to someone else?
     
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  6. flatbedsv77

    flatbedsv77 Bobtail Member

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    Feb 22, 2015
    Homer Glen, IL
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    I'm leased to someone else and running pipe. I am not doing job site deliveries.
     
  7. brsims

    brsims Road Train Member

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    Meadville, PA
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    OK. Apparently whoever you are leased to has underbid on your loads. I can tell from the rates you are getting, since my carrier pulls a lot of pipe out of the same areas you are running in (probably picking up at the same places, too). Time to reevaluate what you are getting out of your current carrier.

    Is the truck paid off, or is this a lease to own deal? In other words, can you up and leave with your truck if a better offer comes up? And do you have your own trailer?
     
    chevelleguy454 Thanks this.
  8. flatbedsv77

    flatbedsv77 Bobtail Member

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    Feb 22, 2015
    Homer Glen, IL
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    The truck is mine I have a payment but I bought it at a dealership. I do not own a trailer. Anyway yes I can up and leave.
     
  9. brsims

    brsims Road Train Member

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    Meadville, PA
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    Perfect! I don't know who you are leased on to, but Chicagoland is a GREAT area for freight of all types. You can look into Mawson and Mawson or Mercer (look for the Mercer thread on this forum, there are plenty of drivers over there who can give you hints and tips on how to make a decent buck there)or maybe even do a power only deal with a dry box or reefer outfit. You've got plenty of options here.

    The big thing is still going to be bringing down the Cost of Operation, though.
     
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  10. flatbedsv77

    flatbedsv77 Bobtail Member

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    Feb 22, 2015
    Homer Glen, IL
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    Yes I've read good things about Mercer on here. I have got my cost of operation down to $1.74/mile after going over all my numbers again. That's as low as it's going to get for the time being though. But it definately will help.
     
  11. ReeferOhio

    ReeferOhio Medium Load Member

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    Nov 29, 2010
    Ohio
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    Not only is his break even high, the wait times are ridiculous! I'd be throwing a fit over that, I run mostly local freight in the Cincy area (steel) it's imperative that I'm in and out of the plant in 45-60 minutes tops to make it worth my time. With receiving hours at most places done by 3 pm one load a day won't cut it. (side note I run under my own authority, so when I complain I just pick up the phone to the customer or walk in to see the boss and say my peace). Good luck, be safe.
     
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