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Help with rate info

Discussion in 'Ask An Owner Operator' started by MedicineMan, Apr 9, 2007.

Page 1 of 3
  1. Apr 9, 2007 #1
    MedicineMan

    MedicineMan Road Train Member

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    Jan 13, 2007
    Woodville, TX
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    I probably need my head examined but I'm considering buying another truck. My problem is I havn't owned a truck in over 10 years. I'v just a touch behind on the times as far as rates. Anyone kinda give me an idea of what rates to realisticly expect these days. And to be perfectly honest I'm not even exactly sure how the FSC works.
    What I'm planing to do is buy a truck for cash. I'v been around trucks my whole life and I'm a diesel mechanic so an older truck doesn't scare me. I'l have no payments so I plan to start setting back alot for repairs right away. I am preparing to sit down with my current boss to inquire about leasing on to him. We haul medical scanners and I know they charge round trip miles to cover the bobtail return trip. Sometimes we transport trailers back on top of that which makes the figures look even better. I beleieve they also charge a little over $2.00 per mile, round trip. It does however call for a $4 or$5 million insurance policy. I know he dosn't have enough scanner work to keep me busy but I can then haul freight under his authority.
    So I'm kinda wondering what to expect to get for a percentage from them if I do my insurance but have them do the plates and fuel taxes.

    I'm just starting to put numbers together so if anyone has advice or pont me to god sources of info then it is all appreciated. I lost my paving company a few years back and that left me hurting bad so I can't afford to fail again.
     
    MedicineMan, Apr 9, 2007
    MedicineMan, Apr 9, 2007
    #1
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  3. Apr 9, 2007 #2
    Matthews

    Matthews Medium Load Member

    315
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    Apr 5, 2007
    Akron,OH
    0
    Honestly - If you are getting any TAX moneys back... And CAN used the SAVED moneys you have on a $10,000 TRUCK? I would do that.

    Use the BANKS money's!!!!! get that SMALL $10,000 loan ... ( Personal ) or SEMI loan ...
    A Semi loan rate it like 12% Intrest and a Personal 5-8%

    DONT use ALL your moneys because your going to have to use some for general BS like you allready know.
    BELTS, HOSES, FLUIDS, ect.....

    YOU can get a VERY nice truck for $10,000 And Thats NO joke.....

    Your payments will not eat you're weekly $1,500 - $2,000 . ... .

    AT around $10,000 your payments SHOULD be around 280 - 400P/MO Based on your credit.
    You should know the rest...

    The rates I look for:
    Avrg Rate LOCAL ( 2-3.00PM ) Within 300 Miles of CLEVELAND / Youngstown / Toledo.
    And the rates start dropping : REGIONAL Rates AVRGE - 1.50 or a little higher...
    And on OTR? We O/O's get raped!!!!! I've seen and called on rates as LOW as $.98CPM!!!!!

    We as O/O's need to ( CLEAR ) AVRGE .58CPM OTR to make a good living! And Cant do that on todays rates!

    All the best ... My 2 cents,
    Matthew

    And Im GLAD to hear someone who's been in the Industry allready (I want another Truck ) ...
    GREAT!!!!!!!!!!!!!! I Hope you Do well!!!!!!! ( STAY local ) stay FIRM on rates.... And dont put up with the Broker (BS)!
     
    Matthews, Apr 9, 2007
    Matthews, Apr 9, 2007
    #2
  4. Apr 9, 2007 #3
    MedicineMan

    MedicineMan Road Train Member

    5,799
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    Jan 13, 2007
    Woodville, TX
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    I'm talking buying a truck for cash, no payments. I'm actually considering the cabover that is in the yard sale section here. I'm also looking at a few 359 petes. I'v only owned petes and there isn't anything I can't do on them.

    The stuff I'm looking at I know they are charging over $2pm round trip. W ealso have an account hauling electric buggies which pays like $175 round trip miles also. I guess what I'm wondering is.... When I sit don to strike a deal with my cmpany about leasing on. How much of a percentage should I expect to pay them for leasing on, doing the fuel taxes etc.
    When I owned trucks before my father and I were independant so I never had a truck leased to a co so I don't know what they get. I do know I was hauling for no less than $1pm 10 years ago when I was paying $.85per gallon for fuel so the thaught of hauling for $1.50 now scarees the hell out of me.

    I have a great job now and I'v been here 6 years but my house in WI is for sale and I'm moving to TX so I'm trying to come up with a way to stay attached to this co and there is potential to make great money here.
     
    MedicineMan, Apr 9, 2007
    MedicineMan, Apr 9, 2007
    #3
  5. Apr 10, 2007 #4
    Matthews

    Matthews Medium Load Member

    315
    14
    Apr 5, 2007
    Akron,OH
    0
    I know your not me.... But What I actually did was keep my present JOB until they company went under. .... .
    I got a used truck at around $5,000 and put another $2,000 to make DOT / Road ready.

    I hired a friend of a friend, who is STILL with me... at a 22% rate on the trucks GROSS.

    When my job died... I went to an auction got another throw away truck and Thats the FLD i drive.
    Looks like ####, but is reliable as any I've drive. I would trust the truck to drive from Ohio here to TX and back for months!
    N14 Cummin's with a Minor inframe, 1M-450Miles today! Its a 94.....


    A little about the JOB,
    We where told it was going to happen but just didnt know when. So, when I heard that I had to do something and get busy thinking.

    This is about all I know besides Computers, Which I HATE!

    I myself would think about FLAT rate, if you know this Company.

    As far as a FSC? I would start at 35% or better. You can come down but not to low. Thats why I say think about Flat rate. What you dont make on the RATE you can make up in FUEL. After all ( YOU ) aint got a truck payment and YOU can do that!

    My imput,
    Matt

    PS,
    CHROME dont get yah HOME... But I myself am in love with the Peterbilt too!
    Boy didnt that sound good... lol
     
    Matthews, Apr 10, 2007
    Matthews, Apr 10, 2007
    #4
  7. Apr 10, 2007 #5
    Joethemechanic

    Joethemechanic Medium Load Member

    373
    32
    Mar 22, 2006
    Phila Pa
    0
    Here is how my fuel surcharge works. I base it on $1.50 a gallon and 4.5 MPG.

    Lets say today's rate for fuel (at the pump) is $2.60 a gallon and I run 200 miles

    200 / 4.5 = 44.44 gallons burned.

    $2.60 - $1.50 = $1.10 difference per gallon

    44.44 X $1.10 = $48.88 in fuel surcharge
     
    Joethemechanic, Apr 10, 2007
    Joethemechanic, Apr 10, 2007
    #5
  8. Apr 10, 2007 #6
    Matthews

    Matthews Medium Load Member

    315
    14
    Apr 5, 2007
    Akron,OH
    0
    Another prime example here boys. MedMan you cant donate diesel at a local blood drive so you may as well jump back in the Industry and help us congest traffic!

    Im sure you'll be just fine. Even though im young yet im still going to say (WITH) respect to you.. play the game smart as if times havent changed.

    They HAVE, and even I've gotten to see a few of them!

    All the best, Hand.....
    Matthew :yes2557:
     
    Matthews, Apr 10, 2007
    Matthews, Apr 10, 2007
    #6
  9. Apr 10, 2007 #7
    MedicineMan

    MedicineMan Road Train Member

    5,799
    6,440
    Jan 13, 2007
    Woodville, TX
    0
    Joe
    SO you are saying you get 100% surcharge for anything over $1.50?

    How does that compare to Mathews 35%? Is 35% figured on the total cost of fuel for the week? Say if you are paying $2.50 then you'd charge 35% of that $2.50 which off the top of my head comes to around $.82 per mile? Is that how you are figuring that?

    My job isn't going under. This company expands every year. I'm just moving from WI to TX so that I can sell my house and use the equity to buy another and not have a mortgage on it. I'm tyring to see if I can lease on to the company i currently drive co truck for since I know they make good money and the medical field is a niche that is always expanding.
     
    MedicineMan, Apr 10, 2007
    MedicineMan, Apr 10, 2007
    #7
  10. Apr 10, 2007 #8
    Joethemechanic

    Joethemechanic Medium Load Member

    373
    32
    Mar 22, 2006
    Phila Pa
    0
    I'm not sure how other people work it. We were using the same formula as the carrier we are leased to. It went by a percentage of the gross revenue that the truck generated. The thing is we are pretty much the only terminal that specializes in hourly local work. When we used the carrier's percentage of the gross formula, the amounts that we were charging the customers were astronomical compared to the miles we really ran. So we came up with this formula because it was fairer to the customers. I have days that I run 30 miles and run up 10 billable hours, so you can see percentage of the gross income wouldn't reflect actual fuel burned.
     
    Joethemechanic, Apr 10, 2007
    Joethemechanic, Apr 10, 2007
    #8
  11. Apr 10, 2007 #9
    MedicineMan

    MedicineMan Road Train Member

    5,799
    6,440
    Jan 13, 2007
    Woodville, TX
    0
    I have the opposite isue. I'm the only road driver in a local company. ALthough it works to my benifit usually and it's the major reason I make as much as I do here.
     
    MedicineMan, Apr 10, 2007
    MedicineMan, Apr 10, 2007
    #9
  12. Apr 10, 2007 #10
    Joethemechanic

    Joethemechanic Medium Load Member

    373
    32
    Mar 22, 2006
    Phila Pa
    0
    Yeah I get paid quite a bit different than the other 400 O/Os that work for my company. The terminal I work at gets 8% of the gross for brokering the load (kind of like a sales commission). Then the carrier pays me 76% of the gross. If I use the terminal's trailer, I write a check for 6% of the gross to the terminal for trailer rental. As far as tolls go we bill the customer for 100% of them and that is all mine. Same with the fuel surcharge, the customer pays and I get 100% of that.
     
    Joethemechanic, Apr 10, 2007
    Joethemechanic, Apr 10, 2007
    #10
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