When Broker's laugh at your rates.........

Discussion in 'Ask An Owner Operator' started by femalecdla, Aug 12, 2021.

  1. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    I field calls all day long from rude brokers. Mumblers, fast talkers, sketchy bottom feeders with bad credit get attitudes when you ask for their MC. Had several hang up on me today alone simply because I wouldn't do an intrastate move for them. It's shocking how many aren't aware their bond doesn't cover it for those moves. Or maybe they do and they're looking to burn an ignorant Carrier?
     
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  3. Midwest Trucker

    Midwest Trucker Road Train Member

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    It’s just business. Really... don’t worry about it. If you never have these things happen to you then you run too cheap. People get frustrated on the other end of the phone just the same as when rates are crap and you will likely do the same one day. Heck, truckers drive to Washington DC and demand all kinds of government intervention and ##### ##### #####. You don’t think a broker gets upset after hearing the same crap trying to cover their too low prices load that their sales guy has? At least they aren’t in DC complaining. lol.

    Don’t get emotional about it, just move on. Better yet get knowledgeable where you can tell them what’s up vs the other way around. Knowledge is power, power is leverage, leverage is higher rates.
     
    black_dog106, PSM379, Ruthless and 7 others Thank this.
  4. skallagrime

    skallagrime Road Train Member

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    Deadhead
    Fuel
    Truck/trailer (old iron constantly being fixed or financed brand new equipment every 3-4 years)
    Insurance
    The 8 million little regulatory expenses
    Tires
    Oil chgs
    Pm misc (lights, brakes, etc)
    Driver

    Its really easy to ballpark 2.50-3.00/ listed miles before you actually make any profit. And thats before you take industry specific stuff into account.

    If you find 1.50 loaded miles to be a good breakeven, you need to pay your driver slave wages, get 9 mpg and NEVER break down/blow a tire.

    When blair says thats with equipment paid off, what should they do if and eventually when a frame rail needs replaced to the tune of 15-30k? Is that "alimony payment" that shouldnt be included in price of operation? Is a paid off 20 year old trucks full electrical system gut and replace tonthe tune of 30k in parts and labor a "gambling addiction"?

    With all due respect, youre a broker or company driver with no idea what it takes to run a reliable trucking service.

    And thats for COMPETENT drivers running the vehicle. Lord knows a bad driver will cost more because they dont care about fuel cost, or how theyre trashing a transmission, or even backing over some guys hood at a truck stop.
     
  5. ProfessionalNoticer

    ProfessionalNoticer Road Train Member

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    Spot on! What's "absurd" is some pencil pushing office dweller dictating a motor carrier's cost of operation or a port roach bottom feeder and his duct taped equipment and covered plates to beat the tolls expecting others to run in the same fashion. It's NOT a level playing field out here and it never wil be.
     
  6. femalecdla

    femalecdla Light Load Member

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    Thank you. It never stops to amaze me at these O/P that critiques another O/P because they operate their business at $1.50 a mile. I cannot.

    But for those that simply failed accounting, let me break down my numbers. You will notice no personal expenses are included in my expense report. So stop with the messy assumptions that I must be living some high life. This is business, not some wishful thinking. My expense report includes growth, equipment replacement, maintenance, and expansion. Your numbers maybe different. That’s ok. No two business shares the same P & L.

    Lastly, I wasn’t going to share this as it is personal to my business. But, given that there are those that cannot understand how a trucking business can have a $3 breakeven point, I’ll share this. I won’t be sharing my company finances again unless I hire you as my CFO and that position is already filled.


    1. Fixed Cost


    Truck Payment $795/wk

    Tolls. $183wk

    Truck ins. $350/wk

    Base plate. $48/wk

    ELD. $15/wk

    Escrow. $375/wk

    Office $138/wk

    Virtual Asst. $24/wk

    2290. $11/wk

    Storage. $12/wk

    Cable (Truck). $14/wk

    Salary (Driver). $385/wk

    Load Board. $35/wk

    Trailer. $139/wk

    Loan(APU). $665.2/wk/



    Total fixed cost: $3,189.2 wk or $532 daily rate or $2.66 RPM breakeven.

    1. Variable cost


    Fuel $0.55 per mile
    IFTA. $0.03 per mile

    Breakeven rate (FC + VC). $3.25 per mile
    1. Operating 70%
    2. Escrow 20%
    3. Salary 10%
    Profit= (FC +VC) - Gross Profits
    SE tax 15.3% of Net Income

    I’ll stop here as I can go into projected income/loss for the year, but this is personal for my business, not every business will share this information with the general public.

    Anyone see a car payment, mortgage payment, or trip to the Bahamas in these numbers? These are real numbers and I don’t live above my means. In fact, taking a salary of 10% capped at $385 a week is well below what the average company driver makes. And yes, for the past 2 years, I’ve paid myself $385 a week while putting the rest of my profit back into my business. 90% gross goes back into my business while I live off of 10% profit (net), not gross profits. I do not take away income from gross profits. Yes, it’s included in gross income but I do not take more than 10% of net. Please do not ask me what I net because I will not share this information nor is it relevant for public disclosure. I’m an LLC not a C-Corp and I do not have to share this information. I only shared this much for those that think I must be living above my means and/or those that have no clue why I will not operate my business at $1.50 per mile.
     
    Last edited: Aug 13, 2021
  7. MTN Boomer

    MTN Boomer Road Train Member

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    At a buck fifty a mile, they will always be the low bidder..
     
  8. RedForeman

    RedForeman Momentum Conservationist

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    This thread is like a Neiman-Marcus store manager getting upset when a K-mart shopper sees his price tags, then laughs in his face and leaves the store.
     
  9. MTN Boomer

    MTN Boomer Road Train Member

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    The receiver is not laughing , when the low bidder doesn't show up with the load
     
  10. MTN Boomer

    MTN Boomer Road Train Member

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    You must be a low bidder.
     
  11. haycarter

    haycarter Road Train Member

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    Must be a real fancy APU, or a very short Loan Term...:sad1:
     
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