Fuel Prices are NOT the Problem

Here is the link to the site

http://fox59.trb.com/

They don't have anything posted on the Fox at 10 (on the left) link as of yet.. And the video that they have "Gas prices" is not the report they just ran.. So, may have to look a little...

I will keep looking for it...

 

Wow that was fast... I emailed them and they said the entire report will be posted after the news cast... Hope that helps

 

Labor unions is a bad comparison. That is collective bargaining. What you are talking about(multiple business owners uniting to charge whatever they want and all charge the same amount for their goods or services) is called collusion and is definitely illegal.

If you are suggesting that the government re-regulate the industry, then that is different('cuz the govt.can do whatever the hell they want). We as individuals CANNOT unite in such a way or we will end up in FEDERAL prison.

 

If we charge in a Price Range than that would by definition not be collusion. In other words, you run at $1.75 pm, O/O Joe runs at $1.65 pm and I run at $1.70 pm or anywhere where in between, below, or above within say $.15

True collusion would be every one runs at one price.



http://en.wikipedia.org/wiki/Collusion#Characteristics

So by running at a range:

• We are not using a uniform price
• Discounts are what we can run at in relation to our individual break even points
• If the customer is included in price negations there are no "advanced notice" between carriers and the information exchange is through agreement between shippers and carriers.

The thing is we all know what it takes to run our own break even points. So some might be able to run at $1.70 while others must run above $2.00. In my current case as a O/O in the dump biz, I can't run below $75 per hour with my ten wheeler and at that rate I need to work 20 hours a week to hit my base at of $1500 per work. At $80 per hour I need to work 18.75 hours not much of a difference but, when the low-rates kick in at say $50 per hour that means I would have to work 30 hours a week to hit the baseline. In the dump biz 30 hours is a rarity where 18-20 hours is doable and about average. Now factor that in with fuel cost on a dump truck which gets worse mpg than a otr rig say 4.5 -5 mpg if you're lucky.

For instance today I ran 7 trips to the landfill which was only 2 miles away to the scales, 1 mile up to the dump area 1 mile back to the gate and 2 miles back to the job. My last load was a to a solid waste landfill about 6 miles away. So a 104 miles total for today at 8 hours x $82 per hour (-5% to the broker) $656.00 and after broker fees $623.20-$200.00 fuel (I should have burned 20.8 gals of fuel but that's a road miles at 5 mpg estimate. Going up the grade at the dump actually burned up a lot more fuel around 50 gals) = $423.20 TTT for today. Now imagine that same run at $50 an hour x 8 hrs which =$400.00 under those same conditions:

$400.00 gross-5% ($20) $380.00- the $200 for fuel =$180.00

Makes you wonder why anyone would run so cheap to cut everyone else out who runs at a fair rate.
When things run the way they should I only need to run three days x $80 per hour x 8 hrs. or 4 days x $80 per hour x 6hrs. to make a decent gross ($1920) which is doable yet the low rates would have to run 5 days x 8 hrs. or 6 days x 6 hrs. to make that same gross and dumps even in good years, average 3 days a week.

I still can't figure out how or why anyone would want to run cheap.

 

What you are saying is the way the current system works. If you were to set up a price range as you say, it wouldn't be long at all before the bottom feeders were running at steep "discounts" to cut the rates so that they could gain larger market share.

Without large amounts of corruption(threats,bribes,etc..) to keep people from discounting, a "price range" system wouldn't work. The bottom end of the range would just keep falling.

Believe it or not, I'm NOT trying to be negative. I'mjust pointing out flaws that I see in some of the ideas that have been presented. I don't have an alternative solution, and quite frankly, I have no need nor desire to develop one. I am personally doing better than ever financially. It is unfortunate that not too many people could say that, but that is business. Only the strong will survive.

 

HEY!! leave me out of this..

I'll have you know I drove my truck 900 miles home and it only broke down twice. That's 450 miles between breakdowns!

And both my jeeps are paid for! lol