Hey guys,
I came to the forum about a week ago to ask a totally unrelated question, and it got me thinking about Landstar, a company i studied in business school. I figured this would be the perfect place to ask something i never understood. How in the world can landstar make so much money in revenue per mile? In thier annual report they say they make 2.04 of revenue per mile, while the industry average is about 1.30. Does Landstar really have that pricing power? If someone could explain to me why landstar can charge what they do i would be much obliged.
thanks,
James
Landstar Model
Discussion in 'Ask An Owner Operator' started by James2009, Jan 28, 2009.
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Howdy !
Landstar is sort of like Wall-Mart..
Sure those Waltons and Hunts are in the top worlds richest folks !!!
Butt go to work or ask most anyone who made it happin for the business and they are lucky to have lunch money.
Also consider the big picture. Since 2000 OOIDA and Landstar doubled and then some.
Like a City that grew while other little town's disappear.
2001 was the big one and well before I sold my stuff in 2004 there was only a skelton crew left in the transportation industry.
When companies like EK Miller, Roadrunner ect, ect went south The O/O's put the units on with Landstar system.
Landstar has no bragging rights on JB-Werner or anybody. .Landstar brokers are just the run of the mill..Same Suff !!
Landstar is like Burnie Madoff: they have nothing to loose but a telephone. -
The botten line as everybody knows already is:
We are at war and Landstar is the Profiteer. -
B&T Rogers Thanks this.
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Landstar is a great company to lease to. I have my own trailer(flatbed), I buy my own tag. My personal expierence with Landstar for last year as an example. I grossed $155,000,(my share) and about $35,000 of that was fuel surchage. I cleared after fuel, insurance, fuel taxes, and misc. fees about $120,000. I only worked about 9 months total, home every weekend cept' 3 weekends. The people that bad mouth Landstar is the ones that can't get hired or was fired. I've been in the industry for 26 years and Landstar is the best company I've ever leased on to.
ric1jud Thanks this. -
I don't know if they are good or bad, all i know is that they seemingly make in terms of revenue per mile a heck of a lot more than the competition. My question is how? do they have very lucrative deals which pay well? Is it that they focus on irregular routes and can charge more? Is thier customer service so much better than everyone else that people want to do business with them more than with others? I just don't get it. When i worked in portland oregon i remember at a thanksgiving dinner striking up a coversation with a landstar trucker. He told me that he made twice at landstar what he could have made elsewhere. i simply don't get how they do it.
best
James -
Landstar has such a large Agent system. Litteraly thousands of them across America. They do use internet load boards when their own customers are slow. Their Fuel surcharge is unmatched. As soon as the fuel increase's so does their FSC. They don't ever bother you when you go home. They have never cheated me out of a dime. Always get the money that was qouted to me.
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All of the negative posts on this issue is definately sour grapes. I don't know if Landstar is the best company out there, but they are the best I have ever worked for. I have been with Landstar for 7 years, I made more money with Landstar and their "run of the mill" agents in the first 3 years than I did in the first 10 years of my driving career combined.
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There are those charges for tags, permits, etc., but once the rate is set there can be no change once the driver picks up the load. Giving back a settlement after the load has been hauled is ridiculous.Last edited: Jan 31, 2009
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