Do not take this the wrong way, but you are an employee at a company where YOU are NOT responsible to take care of anything financially after you clock out. Hypothetically, a truck owner realizes he/she needs a clutch replaced & are going to be down a day, two, three between shop scheduling & parts availability, are you really going to be worried about the customers perspective of whether you hauled at half rate coming back? OR are you going to be focused on whether you have generated enough money to pay for this weeks glitch? Most would have enough to cover a clutch, but when things get compounded with a couple slow weeks, maintenance/parts replacement costs, things can really add up.
Am guessing you see the numbers covering mostly gross at the company you work at. But until the money comes out of your pocket for every single thing that truck does or does not do, it is kind of tough to tell someone else they should work for LESS. Nothing personal, but is stunning how you are working so hard in the few previous posts to justify why you would work so cheap instead of thinking how to improve your own rates. That is the point of this thread, to quit hauling half rate under the name of back haul or any terminology.
Think about your argument, you will maintain your customer by doing half price stuff on the way back correct? How long until they find someone who will do the front side or your main haul for half of your rate? See where this goes?
Stop calling it a back haul
Discussion in 'Ask An Owner Operator' started by BAYOU, Jun 5, 2014.
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I am an employee, but I have also been on the other end relying on the O/O paycheck, for a long time. My ex and I bought a truck and he drove for the very same company I worked at. And no, I didn't give him preferential treatment or loads. No one did. I'm not saying I like cheap freight, I'm saying I take care of my customers AND my drivers. There is a balance that has to be maintained. If you serve a customer you get a lot of loyalty. My freight pays good and I have to get my trucks back to serve those customers, my guys don't stay out for weeks at a time. It sucks to come back empty, it helps to have a load coming back that pays for fuel and then some. I also make sure my guys are paid for wait time, layovers, extra work, etc. We charge for anything we can, afterhours, weekends, holidays, tarping... If it was bad I wouldn't keep my guys. I had an 80% retention rate, that 20% was mostly my pick up trucks. My old company was open for 15 years and still had all it's original drivers. My drivers personal cars are nice, they have lots of toys, and they have nice brand new 2 story homes or whatever they want. I don't think they're hurting for money.
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I think that's finally what done me in you need to really go over your numbers my drivers made $60,-$70,k a year and they were the only ones making money!281ric and exhausted379 Thank this. -
I have a lot of drivers in big trucks making over 100k. Your business might be different than mine. I have had drivers running to Canada and back (from Houston, TX), making 10k a week after fuel and their deductions. I don't know your rates and how busy you stay, but mine were doing good. As long as they manage their money instead of blowing it they could live nicely. My guys had an escrow account and some would let it build up, they'd use that money for repairs and taxes at the end of the year. I always tell my O/O, keep at least 10k set aside in an account for repairs in case something major happens, if not more & make sure to get a good CPA. Before my ex and I bought a truck he was working for someone else making 30%, he would take a good out of town load and make $1000/wk easy.
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I have a buddy in Houston that has 48 trucks leased to him he don't own anything he makes about $60,k a year off each truck he made 2million last year each driver he has makes $160,-$220,k a year so who makes the money!281ric Thanks this. -
"Back-haul"......bet that was thought up by the same people who made up the term "positioning load". I used to work on a percentage pay. That was the lame excuse they gave for the really cheap loads. Of course, they'd even say that on loads going to places that I knew to have mediocre rates at best within our network.
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Yeah the owners have much nicer houses lol, but complain if they gotta pay for ANYTHING. But I guess that's how you keep the money.
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What kind of logic is that? By taking the load for $900, you just diluted the rate of the first load. Are you an owner operator?
281ric Thanks this. -
Hauling on your logic doesn't either.
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My location has Nothing to do with my rates. The load is dropped. Job over. They watch old TV shows too much.
281ric Thanks this.
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