Rates are crashing and fuel to the moon!

Dave_in_AZ · Aug 7, 2022

Oxbow said: ↑

I'm not in the trucking business. I was from 1986 through 1994, the last half with my own authority. I got out of trucking because I was about to lose my family.

Currently I own a business that needs trucks, but our revenue is derived by bidding on earthmoving projects, and specifically stream channel restoration. It is a niche that was developed out of necessity shortly after starting business in 2008; my crystal ball was a little foggy to say the least.

All the talk lately about business practices, factoring, cpm, etc. and how tough trucking is maybe ought to be put into perspective. We typically work on a project for at least two weeks before our first invoice goes out, and we typically have to wait 30 days before that first invoice is paid. We have $100k on the books in receivables on average. Our payroll runs about $8K per week. My off road fuel bill is currently running $5K per week. My insurance runs $3K per month. The cost of money is real, and we get stretched to the limit frequently. We are also experiencing growing pains, which are expensive. We are signing papers on a new excavator next week. $349K for the hoe and another $68K for GPS equipment for it.

It is all relative, but anyone that thinks trucking is any more difficult than any other business is kidding themselves.

For any small business to survive, one must provide a level of service above the industry standard. @Midwest Trucker must have figured this out as well as @Dave_in_AZ , @Accidental Trucker , @wore out , @Catmando , @Rontonio , @stwik , and so many others. I should not have started naming folks because there are so many good folks on here that I could not begin to name them all. Whether or not you own a fleet, run one truck, or work for a company doesn't much matter. What does matter is that you provide a level of service and performance that is above the norm.

That last year or so has seen an unprecedented demand for services of all types. When the demand for services reduces and the supply of services has increases, those that provided above average service at an equitable price will be remembered by those that matter. It doesn't matter if you own a huge fleet, move dirt, haul cows, or drive for a company that does these services, your performance and how you made the job of those that pay you a bit easier will be rewarded. Those that handle their finances well and provide a premium level of service will succeed and prosper again. It's not rocket science.
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Please tell us it has wobbles ( JD ) controls.

Oxbow · Aug 7, 2022

Dave_in_AZ said: ↑

Please tell us it has wobbles ( JD ) controls.
Click to expand...

JD controls are forbidden, even though all our excavators have pattern changers. The main reason is that if I get in a hoe and the controls are backwards, someone is going to get an ### chewing!

Midwest Trucker · Aug 7, 2022

Oxbow said: ↑

I'm not in the trucking business. I was from 1986 through 1994, the last half with my own authority. I got out of trucking because I was about to lose my family.

Currently I own a business that needs trucks, but our revenue is derived by bidding on earthmoving projects, and specifically stream channel restoration. It is a niche that was developed out of necessity shortly after starting business in 2008; my crystal ball was a little foggy to say the least.

All the talk lately about business practices, factoring, cpm, etc. and how tough trucking is maybe ought to be put into perspective. We typically work on a project for at least two weeks before our first invoice goes out, and we typically have to wait 30 days before that first invoice is paid. We have $100k on the books in receivables on average. Our payroll runs about $8K per week. My off road fuel bill is currently running $5K per week. My insurance runs $3K per month. The cost of money is real, and we get stretched to the limit frequently. We are also experiencing growing pains, which are expensive. We are signing papers on a new excavator next week. $349K for the hoe and another $68K for GPS equipment for it.

It is all relative, but anyone that thinks trucking is any more difficult than any other business is kidding themselves.

For any small business to survive, one must provide a level of service above the industry standard. @Midwest Trucker must have figured this out as well as @Dave_in_AZ , @Accidental Trucker , @wore out , @Catmando , @Rontonio , @stwik , and so many others. I should not have started naming folks because there are so many good folks on here that I could not begin to name them all. Whether or not you own a fleet, run one truck, or work for a company doesn't much matter. What does matter is that you provide a level of service and performance that is above the norm.

That last year or so has seen an unprecedented demand for services of all types. When the demand for services reduces and the supply of services increases, those that provided above average service at an equitable price will be remembered by those that matter. It doesn't matter if you own a huge fleet, move dirt, haul cows, or drive for a company that does these services, your performance and how you made the job of those that pay you a bit easier will be rewarded. Those that handle their finances well and provide a premium level of service will succeed and prosper again. It's not rocket science.
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Never mind, edited for too personal.

KrumpledTed · Aug 7, 2022

REO6205 said: ↑

This thread is real close to being closed if the petty bickering, baiting, and other childish antics don't stop.

Or, as an alternative, we could just thread-ban a couple of people.
Click to expand...

Oxbow · Aug 7, 2022

Midwest Trucker said: ↑

I’m real thankful to all of those who have been with me for years and helped build this “thing”. There are quite a few folks who have now retired from my company that there’s no way we’d be where we’re at today without them. If you don’t have all stars on your team, it doesn’t matter how great you are, your not amount to a ####. It’s people 100%.
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Ha, 2008 - what a great year to start a business! $5 dollar fuel within a month of me deciding to do this!
This part right here says it all. Our corp group has been with us since the beginning.

REO6205 · Aug 7, 2022

Oxbow said: ↑

I'm not in the trucking business. I was from 1986 through 1994, the last half with my own authority. I got out of trucking because I was about to lose my family.

Currently I own a business that needs trucks, but our revenue is derived by bidding on earthmoving projects, and specifically stream channel restoration. It is a niche that was developed out of necessity shortly after starting business in 2008; my crystal ball was a little foggy to say the least.

All the talk lately about business practices, factoring, cpm, etc. and how tough trucking is maybe ought to be put into perspective. We typically work on a project for at least two weeks before our first invoice goes out, and we typically have to wait 30 days before that first invoice is paid. We have $100k on the books in receivables on average. Our payroll runs about $8K per week. My off road fuel bill is currently running $5K per week. My insurance runs $3K per month. The cost of money is real, and we get stretched to the limit frequently. We are also experiencing growing pains, which are expensive. We are signing papers on a new excavator next week. $349K for the hoe and another $68K for GPS equipment for it.

It is all relative, but anyone that thinks trucking is any more difficult than any other business is kidding themselves.

For any small business to survive, one must provide a level of service above the industry standard. @Midwest Trucker must have figured this out as well as @Dave_in_AZ , @Accidental Trucker , @wore out , @Catmando , @Rontonio , @stwik , and so many others. I should not have started naming folks because there are so many good folks on here that I could not begin to name them all. Whether or not you own a fleet, run one truck, or work for a company doesn't much matter. What does matter is that you provide a level of service and performance that is above the norm.

That last year or so has seen an unprecedented demand for services of all types. When the demand for services reduces and the supply of services increases, those that provided above average service at an equitable price will be remembered by those that matter. It doesn't matter if you own a huge fleet, move dirt, haul cows, or drive for a company that does these services, your performance and how you made the job of those that pay you a bit easier will be rewarded. Those that handle their finances well and provide a premium level of service will succeed and prosper again. It's not rocket science.
Click to expand...

Well said.

Midwest Trucker · Aug 7, 2022

Oxbow said: ↑

Ha, 2008 - what a great year to start a business! $5 dollar fuel within a month of me deciding to do this!
This part right here says it all. Our corp group has been with us since the beginning.
Click to expand...

Yeah, it seems like a curse in the moment but ends up being a blessing if you start during tough times. 2009 was touch and go for sure but we made ‘er!

That’s pretty #### cool we both started in 2008. Jan 5th was my start date. It was a #### cold day! Broke an air line the very first morning. lol

Accidental Trucker · Aug 7, 2022

Oxbow said: ↑

Ha, 2008 - what a great year to start a business! $5 dollar fuel within a month of me deciding to do this!
This part right here says it all. Our corp group has been with us since the beginning.
Click to expand...

It's always the people. We just picked up another farm which came with a manager. During the "interview", she commented on the need to continuously look for replacements for labor. That was a good teaching moment. We hired a new guy last spring, and counting him, our average tenure is still six years. No, "continuously looking for labor replacements" is not a winning strategy. Even our summer help often starts as freshmen in high school and most come back for the summer through most of college.

Dadetrucking305 · Aug 7, 2022

Long FLD said: ↑

I’m not sure who is being spoken about here, but one at the top of my mind that went out of business was Tow Piglet. He expanded when rates were high and brought on owner operators, was bragging about how much his business was grossing, but then didn’t have the money when his insurance renewal was due.
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I’m replying to this late so maybe this might be in line with what someone else might have wrote,but his business model sucked prior to Covid and he mislead a bunch of hotshot guys with that non CDL crap and the million cheap miles he and his guys ran a week.

Last Call · Aug 7, 2022

Oxbow said: ↑

It is all relative, but anyone that thinks trucking is any more difficult than any other business is kidding themselves.

For any small business to survive, one must provide a level of service above the industry standard.
Click to expand...

That right there is golden......the best words I have ever seen typed here
Well done Sir..
I say this with complete sincerity..
You should be proud of what you have done...
I'am not going to elaborate on your words you did a fine job...
I just know that many times I load somebody's livelyhood on my trailer.. and their only income for the whole year is standing in my trailer....

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