The journey begins - purchased a truck.

Very great insight !! I really appreciate this information... Im guessing if you are brand new to bidding on a certain project that we have never worked before, it would be better to go the route of bidding time and material + profit ? If you don't already know what all is involved with the cost of said project? This way we can eliminate the risk of making an all in bid and possibly bidding to cheap and having our expenses exceeding our revenue?

Where as when you are more experienced to these jobs, you can make more profit by making an "all in" bid because you are aware of the costs involved and can bid accurately for the costs plus any profit you want to make?

Am I following that correctly?

I can only imagine customers would rather want a hard number before starting the project, and would favor an "all in" bid (vs.) the time and material or cost plus bid, even know the latter may save them money in the long run?

 

Yes, exactly right.

I used to prefer T&M because of the assurance of making a modest profit. Not so much anymore, but it's all a game.

I guess it boils down to the fact that Blair is now delving into more of a big boy game, and that has higher stakes associated with it.

 

Very great info ! I appreciate you taking the time to explain these concepts . I've learned a lot from this

 

It has certainly been a learning experience for me, and some of the lessons were more expensive than others. When I was trucking for a living years ago everything seemed much simpler!

 

I really don't think Blair is gonna lose money on this job but he might be leaving money on the table, so to speak. Because of his character he'll probably run this load for the agreed rate and if it needs adjusting then tell the customer the rate needs to change for whatever reason. My own thoughts here... I'm not part of the process. Lol

 

I wasn’t trying to seem like I was talking down to you or saying because that’s how it’s always been. Unless the customer or broker changes things or had something wrong, then it’s not their fault it was bid wrong and shouldn’t be their responsibility to pay more money. Now if it’s customers fault, they need to get the check book out. What I mean by professional is if I hire a company, and then they change the game mid stream, I’d never work with them again and sure wouldn’t go to my customer asking for more money. I would feel like it was my responsibility to hire the right carrier who would bid it correctly. If they didn’t it’s not my fault and they need to see it through.

These are just my ideals and the attitude of the buck stops with me, no excuses. It’s not based on what other companies do or what other people have done in the past. I don’t care about any of that.
Like I mentioned, I didn’t mean to come off the wrong way as I respect you and what you do, was just giving my opinion.

 

Have you ever had a call from a customer/broker on a load that you already agreed to a rate saying we have another truck willing to take the load for less then you, will you match thier rate?
I would be willing to bet that the first words out of most of us here would be some form of "but we had agreed on X"
Then most likely the next time that customer/broker calls it won't be answered.
I do see your point, every other industry seems to be able to put out a meaningless quote on a project then go way over budget and get away with it.

 

You better break out the drone and do some interviews with the cops for your YouTube channel. That would be some good stuff!