Are your rates going up also?

Well I was just wondering at what point you decide that a load is profitable enough or not. This is just a made up possibility, I'm still a company driver trying to become an O/O and trying learn from you experienced guys as much as I can.

Let's say you are unloading in a bad area for freight. You normally would say okay I won't haul anything that pay's less than $1 per mile profit to the truck after all expenses but you have no freight booked for a reload and there is a Good freight are 4-600 miles away that you could get that $1 per mile profit to the truck. Now you are offered a load 50 miles away that would pay the truck a $.40 per mile profit after all expenses and would unload real close to that good freight area I mentioned before. At what point do you say okay it's not worth loading, I'd be better off dead heading 500 miles to get that $1 per mile profit and make nothing getting there or at what point do you say okay I can make $.40 per mile profit after expenses instead of nothing going this 500 miles and still get there to the better paying freight lane. I hope that's clear to understand.

Any of you seasoned O/O's feel free to chime in I'd like to hear as many opinions on this as possible.

 

Prefer to make nothing. Less wear and tear. You have to be in the business to understand. I've held out not wanting to do the cheap freight but when they need it there NOW you would be surprise how quick the rate goes up. It's a CAT AND MOUSE game.

 

i think i understand what your saying but .60 cent difference nope your cutting your own throat when you do that. i did that years ago. when i decided to work to a higher standard guess what? my income increased a heck of alot. you give good service stand your ground( not to the point that you become unreasonable) you will be very comfortable in your professional career. thats just my look on the subject.

 

Okay I completely understand what your saying. My next question is how does one decide at what profit margin is it acceptable. I'm sure you and every other O/O have a different rate of what amount of profit you'll work for. I know your cost of operations are a lot higher because of running oversize and OD so rationally you would want a higher profit margin because of the extra headaches that go along with it and I'm sure that it works out that way for you. In general though how should one decide what profit margin is acceptable. I know everyone's bottom line as far as expenses are gonna differ but what formula should a new O/O use to figure this margin. I know the goal is to make as much as possible but give me an idea of a starting point if you can.

 

thats where the cost per mile comes in you have to factor that in on the rate that is being offered. every load is negotiable if they wont then move on to the next. you have to decide what a good rate is. your cost per mile should allready be figured from day one. it should allways be in the back of your thoughts. if you think that .40 per mile profit will work by all means do it. i cant tell you what you should charge every situation is different. but your cost per mile should never change.

 

if your still unsure he## pm me ill try to help anyway i can.

 

You gotta look at the time too. You could drive straight over and pick up that good load. Or you could drive over and wait for the cheap load to be loaded, haul it wherever, and wait some more for it to be unloaded. That's if they feel like unloading you today.

 

I will answer this the best i can last quarter it cost me $1.15 to run my trucking operation i want to make minimun $.38 a mile to me so i will not take any load that will not pay atleast $1.53 all miles deadhead included and last quarter thats exactly what i made $1.53 all miles and my rate will adjust as my operating cost do i will not haul a load that does not make me my profit period this is a business not a hobby

 

I use the same method some days! #### it pays that, I want it.