Why you can not compete with big carriers

Discussion in 'Ask An Owner Operator' started by kay_ray, Mar 6, 2023.

  1. roundhouse

    roundhouse Road Train Member

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    As a o/o or a small
    Company with 10 or so trucks, you can’t compete with the megas and you shouldn’t try.

    i know small
    Companies that regularly win loads being the low bidder , at $10 or $12 a loaded mile or more .
    They have identified a niche in the regional market and are good at filling that niche when no mega in the nation could ever do it .

    You gotta figure out what you can do
    Better than anyone else and find customers who need that service , and
    Show them you are the best and most reliable at solving their needs
     
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  3. Constant Learner

    Constant Learner Heavy Load Member

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    Not true, I compete with everyone. Having a
    contract is one thing, covering the load is another. And when for whatever reason, less than an hour before a pickup you are desperately looking to find a truck to cover, I'm there for the rescue.

    Well, not really...

    That's how I've recently stung JB Hunt $3400 for a 600 miles easy run.
     
  4. wichris

    wichris Road Train Member

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    Most certainly is a FSC. Started during the oil embargo. When fuel evened out around 1.10 that became the base. Just because a rate is flat rate doesn't mean the price of fuel isn't included.
     
  5. Pepper24

    Pepper24 Road Train Member

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    This post reminds me of a woman I used to date just talked to talk never said anything.the information makes no sense.the fuel cost isn’t right.most large companies don’t trade in trucks they sell them.Insurance information can’t be correct I’ve had conversations with my insurance company in the past they don’t offer discounts on multiple vehicles insurance cost per truck is the same 1 or a 1000 same risk for each vehicle. The savings for large companies come in when they have enough capital to self insure they only use insurance Ryder policies for over a certain amount so yes those policies are less expensive.either your just making up stuff or someone just bsing you.Not to mention why would you try to compete with a large carrier if you’re not.It’s like my Grandfather said don’t climb up a tree with a lot of monkeys already there find your own tree
     
    Last edited: Mar 7, 2023
  6. Pepper24

    Pepper24 Road Train Member

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    So you just sit waiting for what weeks so you’ll be available with one truck where jb with there multiple trucks are busy.Or are you saying once in a lifetime this will happen.your not kidding anyone you’re not competing with anyone if your example is even true they will never use you again.This example of way overpricing by your own admission is not going to get you there business there going to JB
     
  7. wichris

    wichris Road Train Member

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    Insurance can be quite a bit less when you're on a mileage or percentage program. Trucks sit, no charge. Brings the overall cost down.
     
  8. bryan21384

    bryan21384 Road Train Member

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    So here's a question: when the aforementioned owner in the original post said he pays 1.50 a gallon for fuel, is that calculated at years end? Reason I ask is because I was thinking the bigger carriers get those rebate checks at year's end for large sums of money. So the rebates that they get, does that make the fuel equal to the price mentioned? You won't see that at the pump, but once you get the rebate and they calculate final numbers, does it make the numbers line up?
     
  9. kemosabi49

    kemosabi49 Trucker Forum STAFF Staff Member

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    Op was talking Canadian and I know nothing about their taxes. But here in the US, there are some states, like Ca, Nj, Pa, that are pushing $1.00 a gallon state and federal fuel tax alone. many others in the 70-80 cent range. Can't see getting any crazy low fuel prices down here.
     
  10. Short Fuse EOD

    Short Fuse EOD Road Train Member

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    Talked to a hirchbach lease guy. Hey pays like a dollar a gallon for fuel, but his rate of pay is low. Makes him feel better on cheap fuel but overall when all numbers are calculated, it’s not that great of a deal.
    You can still have customers. I’m currently doing 2 lanes on a customer. Got to do what megas struggle with. If you are performing like a mega they will outcompete you. Focus on high risk, high service work. A mega doesn’t have the talent to do those jobs. Even in this market, there is demand.
     
    Last edited: Mar 7, 2023
  11. wis bang

    wis bang Road Train Member

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    There used to be a number of NE based tank carriers. Working at one that split Shell Chem's local 60/40 with another local and slightly larger carrier. after two years of customer requesting our better service, the bigger guy would gripe about only getting 40% instead of 60%.

    I watched it happen twice in about 4 years...

    find that nitch [the hard part] the serve that nitch [even harder] to keep it.

    Oh yeah, don't buy any equipment until you have found a way to get that nitch business you found.....
     
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