How much money do you make? How green is your grass?

Discussion in 'Ask An Owner Operator' started by Renegade92, Jun 8, 2020.

  1. TallJoe

    TallJoe Road Train Member

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    Three faceds to point 1.
    1) Cost per mile which is your profitability threshold. It is based only on the past data. The biggest variable is maintenance and lately fuel cost which dropped significantly over the last year.
    2) Rates dictated by the market which so many new and prospective o/o mistakenly think that they can override by their unique ability to be better than all the masses trying also to turn as high profit as possible.
    3) Reported rates on social media like this and FB. They are of no significance to you. You are the only person to know what rates you need.

    It is important not hang up on the very rate per mile but rather use predictability of what the very next trip CASH NET will be based on the current maintenance needs/technical condition of the equipment, fuel and tolls and upcoming bills.
    For example, If you know that you want $3000 because your truck payment will be due in 8 days or even if you have money in the bank but you don't want to lower the savings balance then it does not matter what rates you haul for to accomplish that. Thus some will take rates as low as their historical cost per mile and rely only on what will be left after fuel.
     
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  3. Accidental Trucker

    Accidental Trucker Road Train Member

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    1) -- depends (don't you hate that)?.

    Example, 10 years ago I had a truck to haul my product to market. It ran about 40,000 miles a year, was paid for, insurance paid. Any additional miles were essentially variable cost, so I could go out and run "cheap", and still come out way ahead compared to someone who'se nut was not yet covered.

    Today, for what we do (live fish across international borders), my standard quote is $2.75, all miles, including deadhead to the production site. And I think that's a little low, but again, it's "extra miles". Insurance is paid, driver benefits are paid, 2290 is paid, only cost is driver direct cost, fuel, depreciation and a portion of the maintenance. If we only ran 50K per year, that rate should be more like $3.25.

    2) The best rates are direct to the shipper, IF YOU CAN SERVE THE SHIPPER WELL. Find you niche, and then serve shippers in that niche at an exceptional level. As Steven Covey said, "start with the end in mind".
     
  4. Brettj3876

    Brettj3876 Road Train Member

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    H Town? Houston? In that big of area you should deff be able to find a niche getting you home nightly or at least 3-4 times a wk
     
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  5. Brettj3876

    Brettj3876 Road Train Member

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    This X10
    Another scenario. Say you have a customer or broker whom you do a lot of business with and don't want to lose the account. To me the once in blue moon "favor" is acceptable, cost of doing business, even more so in the local game to keep a valued customer happy.

    Had a load to get me 160 mi to one of my steady customers and that fell through. You're committed at that point. Don't go back on your word. Ran it 300 miles to the receiver, and again struck out getting a load coming towards the house so I hightailed 150mi back to the house.

    Didn't do it for a loss still profit but not much
     
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  6. Brettj3876

    Brettj3876 Road Train Member

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    A good customer will pay back the favor in the future.

    Or you can cash it in the day you accidentally wake up late lol
     
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  7. Montanaland

    Montanaland Light Load Member

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    Jun 29, 2010
    H-town
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    Yes, I hate to bounce jobs but if one tanker co. wants me to pee in bottles for extended periods of time otr..their are many other options in Houston I can look at.
     
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