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?
When Broker's laugh at your rates.........
Discussion in 'Ask An Owner Operator' started by femalecdla, Aug 12, 2021.
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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. -
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.black_dog106, D.Tibbitt, God prefers Diesels and 4 others Thank this. -
Roberts450, God prefers Diesels and 401-Alex Thank this.
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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.
- 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.
- Variable cost
Fuel $0.55 per mile
IFTA. $0.03 per mile
Breakeven rate (FC + VC). $3.25 per mile
- Operating 70%
- Escrow 20%
- Salary 10%
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
JolliRoger, spindrift, Roberts450 and 2 others Thank this. -
At a buck fifty a mile, they will always be the low bidder..
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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.
black_dog106, JolliRoger, Just passing by and 3 others Thank this. -
The receiver is not laughing , when the low bidder doesn't show up with the load
Roberts450, Speed_Drums, Snailexpress and 1 other person Thank this. -
You must be a low bidder.
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bzinger Thanks this.
Trucking Jobs in 30 seconds
Every month 400 people find a job with the help of TruckersReport.
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