How are Brokers NOT to blame?

Discussion in 'Freight Broker Forum' started by rch10007, Oct 14, 2022.

  1. D.Tibbitt

    D.Tibbitt Road Train Member

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    There aint enough popcorn in the world to match the amount of entertainment in these broker hatred threads !

    :biggrin_25523:
     
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  3. rch10007

    rch10007 Medium Load Member

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    I'm not trying to be a know-it-all here. I've said, I have collected data about van rates. That said, there are some things that I purposefully left out of my calulations...one being weight.

    MY base calculations include things like paying a certain load board a lot of money per month to access historical data on lanes, salary expectations for a driver if I had to pay one, HR stuff like workers comp, etc...

    I have an absolute base rate of $1.71 per mile IF I'm calculating mileage...then I add fuel, tolls, etc... Right now fuel is $1 a mile so add that to $1.71 and the base rate becomes $2.71...
    I have an hourly rate of $110 per hour if I need to find a rate that way...
    I have a $1250 per day minimum (24 hours on the truck)...
    $660 is my absolute minimum to start my truck. That's 6 hours - 2 for me, 2 for the shipper, and 2 for the receiver.

    If bidding on a short run, like 150 miles, but I have to pick it up at 9 am and deliver the next day at 9am = $1250. I know some people's heads just exploded, but please share the way you would calculate this instead of telling me that my way is stupid...else, you're just a Satchel of Richards.

    If a load is going 200 miles but will load asap, fcfs at both shipper/drop, this is where hourly rates come in. Let's assume the base rate of $660 and then 50mph for 200 miles is 4 hours = $440 + $660 = $1100. <-- this is why I don't get mad when I get stuck at a receiver for 4 hours... I included detention before I have to bill for it because I do NOT bill accessorials. Why not? Because I negotiate them ahead of time. I'll never call a broker and ask for detention because it took 4 hours to unload...that's just part of business. They rented my service until that load comes off my truck.

    $110 per hour * 11 hours a day = $1210 + $40 per diem = $1250 minimum daily rate.
    But, wait, who drives 11 hours every day? It doesn't matter, you are buying my FULL capacity when you hire me. For every moment you are engaged in business, as a business, you SHOULD be getting paid for it.

    $1250 x 6 (because you'll need a reset after this) = $7500 per week.
    If I'm going 2500 miles, you are basically getting my entire clock, so the rate needs to reflect that! This is the rate I ask to go to Portland. If I run the mileage in my calculator, I would come up with $7041.75. This doesn't include permits, etc, so there is a little extra factoring that goes into the rate. Oh, that reminds me, some brokers like TQL (4%) charge for quick pay. I add that into the rate by dividing the rate by .96 or whatever the charge is.

    Does any of this stuff seem shady? Like I'm trying to get over on someone? It's simple math coupled with expectations that I found in the data analysis from the historical data I downloaded.

    I hope someone sees this and thinks, hey, that's about right...maybe this info will help me somehow. If it's really low to you, I'm glad you have a good paying customer. If it seems high, say so.

    You MUST account for every hour you are doing business. Then, you can determine if you are making enough to justify owning it all. They one thing that all my calculations cannot account for is that I want to drive. I have to compare what I could make in another job to what I make in trucking. Let's say I could be hired on at Walmart for $100k. You can use that number as a substitute in a formula.

    For example, everyone here should know D=RT, distance = rate * time. But, T=R/D. See, if you have expectations (budget) for what you as a human can produce in a given time, you can use that determine, given your expenses, what you'll make at the end of the year. So, just like the formula above, d=rt, you can find one number from all the others with simple math rules.

    *all rates are negotiable
     
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  4. MartinFromBC

    MartinFromBC Road Train Member

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    Agreed.
     
  5. wichris

    wichris Road Train Member

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    I think i'll wait to read his last ? tonight, it was putting me to sleep. Long, drawn out formula's when KISS will do just fine.
    What stood out was $1.00/mile for fuel. You need to work on discount's and/or better mpg's.
     
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  6. MartinFromBC

    MartinFromBC Road Train Member

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    Thanks for your further explanation.


    Last fall we got whalloped by unprecedented storms.
    The ensuing chaos was overwhelming for many companies, and I did what i never do, which is haul food.
    McDonald's contacted me about pulling their trailers, to their restaurants.
    Easiest thing I have ever done.
    I of course showed up with way too much truck for the worlds piddliest little loads, but I don't have hwy trucks.
    They were desperate, so would have agreed to anything.
    My deal with them was to haul at an hourly rate, i kept track of the hours, plus $250 day for food and accommodations.
    God those trailers are light, and brain dead simple to back up.

    If I was ever going to go after a food account, i would be researching pulling for fast food restaurants, and if i got the contract, buy a bunch of those cheap little light duty tractors, with tiny power, because they would be pulling almost nothing, and so narrow, nothing to load, they are preloaded when the truck arrives.
    They probably hardly ever have to even was their trucks just cruising on pavement.
    #### you don't even have to buy a trailer or maintain it.
    Calling that work is exaggerating.
     
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  7. Big Road Skateboard

    Big Road Skateboard Road Train Member

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    Somebody start a thread titled "There's nothing and nobody else to blame but me", and i will agree with them
     
  8. rch10007

    rch10007 Medium Load Member

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    The cheapest I can buy fuel in the US right now is at the TA in Springfield, MO for $4.734 a gallon. The absolute most I've ever paid for fuel was Huntsville to Portland with 41k lbs in the middle of summer for $2100.

    However, why would I give that discount to a broker? That's a cushion for my expenses, not a discount on the rate for them...maybe that's why yall have been hauling so cheap.
     
  9. The Crossword Trucker

    The Crossword Trucker Road Train Member

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    Alright there big strapper, no need to flex quite so blatantly on the dry van guys.:biggrin:
     
  10. Big Road Skateboard

    Big Road Skateboard Road Train Member

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    @rch10007, you should read some of what you post. I'm curious if it still sounds as good as you thought it did when you posted it?
     
  11. wichris

    wichris Road Train Member

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    But that isn't a discount to them. But it does make your numbers inaccurate. That makes all your numbers suspect. Like lying to yourself to make you feel worse(or better)
     
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