What rate to propose?

Discussion in 'Ask An Owner Operator' started by hannafarms, Sep 8, 2020.

  1. hannafarms

    hannafarms Light Load Member

    203
    90
    Jan 4, 2009
    Minnesota
    0
    I run a dedicated route loaded both ways as a company driver and am home daily. The company I run for drops my loaded trailer where I live and I take it the rest of the way and bring back the backhaul for them to pick up. I’m thinking of proposing to the owner of letting me get my own truck and they then would only have to drop the load 3 days a week instead of five because I would stay out two night a week. My question is what type of rate should I propose? My guess is I’m paid around 25% of load so I’m guessing he is making 2.00/mi all miles. I’m thinking of proposing 1.85/mile all miles. No fuel surcharge or any perks.
     
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. ZVar

    ZVar Road Train Member

    10,911
    23,832
    Sep 10, 2010
    Flint, MI
    0
    Way too broad a question.
    What is your truck payments?
    What is your insurance payments?
    How much fuel?
    What is your maintenance payments/savings?
    Trailer rental?
    A thousand other fees that add up?
    How much are you paying your driver (that's you, btw)?

    It all adds up to "it depends". We have posters here that will think $1.85 is great. We also have posters that won't get out of bed for that rate....
     
  4. abyliks

    abyliks Road Train Member

    4,035
    9,495
    May 2, 2010
    ludlow MA
    0
    It’s going to cost about $1.85 just to run the truck down the road, payments/repairs/fuel etc are all different but they will come out similar, I might do the upper $2 a mile range if he’s going to pay me every 7 days but no way I’d go less then 3 if I had to chase money
     
    alds and Brettj3876 Thank this.
  5. hannafarms

    hannafarms Light Load Member

    203
    90
    Jan 4, 2009
    Minnesota
    0
    Ok I didn’t want to get into to much Detail until I had a reply because I sometimes get a lil long winded.

    here are my estimated numbers and cost
    107200 mi/yr @6 mpg @ 2.50/gal and this is at 1.75/mile all miles. In this example at 1.75/mi I would still net 66,000/ year after all expenses and taxes. Currently I’m paid by the hour 20.50/hr 10 hr a day so roughly I make $51,250 Gross. But can easily survive on $35000 net
    weekly monthly yearly cpm
    fuel 893 3573 44667 0.416
    truck 213 852 10650 0.099
    ins 200 800 10000 0.102
    maint 375 1500 18760 .175
    misc 100 400 5000 0.046
    total 1781 7126 89077 0.83
    taxes 650 2601 32513 .303
    total cost 2444 9777 121590 1.13
    pay 3752 15008 187600 1.75
    gross b4 tax 1950 7802 97523 0.91
    net 1320 5280 66010 0.61
    salary 823 3292 41160 0.38
    rev 497 1988 24850 0.23
    miles 2144 8576 107200
     
    alds Thanks this.
  6. hannafarms

    hannafarms Light Load Member

    203
    90
    Jan 4, 2009
    Minnesota
    0
    I know those numbers are hard to follow without grid lines but my pay would be $187600 gross @1.75/mi
    All costs and taxes $121590 =1.13 cpm
    Net would be $66010=.61/mi
    My salary would be $41160= .38/mi
    Biz revenue would be $24850= .23/mi
     
  7. hannafarms

    hannafarms Light Load Member

    203
    90
    Jan 4, 2009
    Minnesota
    0
    Again my bosses current gross of $2.00/mi is a guess could be more?
     
  8. Brettj3876

    Brettj3876 Road Train Member

    11,257
    54,060
    Nov 18, 2014
    Land of local
    0
    Who knows unless you see actual settlements its all speculation. What type of freight you guys haul
     
    D.Tibbitt Thanks this.
  9. hannafarms

    hannafarms Light Load Member

    203
    90
    Jan 4, 2009
    Minnesota
    0
    Our company runs 10 trucks all dedicated hauling racks of glass In dry van for a large glass manufacturer and is shipped to window manufacturers. My route is one of the few that can’t be turned in one day so I’d why they bring the load 2 hours to me and I run it the rest of the way and back. Company has Had the contract for many years. My assumption on what my load makes the boss is a guess yes but knowing other freight rates and that if I was paid by mile which I’m not my pay would be around .57/mile. So me getting .57/mile I’d say he is at the least getting 2.00/mile and probably way more.
     
  10. JonJon78

    JonJon78 Road Train Member

    7,221
    42,653
    Jul 1, 2018
    0
    Just because they have had the contract for many years doesn't mean a thing if you ask me. With the race to the bottom rate cutters that are out here hauling for fuel money now days, no contract is safe.

    I certainly would not run out and buy a truck for this contracted freight you speak of... It could be gone tomorrow then what is your plan?
     
    OldeSkool, D.Tibbitt, ZVar and 2 others Thank this.
  11. Cat sdp

    Cat sdp . .

    21,204
    75,309
    Apr 8, 2012
    Orion's Belt
    0
    Ya , I’d stay company with that deal.
     
    alds and D.Tibbitt Thank this.
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.