Question about freight pay

call it what you want, as long as people take cheap loads, there will always be cheap loads, to me its that simple. I personally will not take a cheap load, i live in Florida, was just offered a full load to Memphis TN, for $500, 850 miles +190 miles DH, = 48 cents a mile to the truck, thats a loss of 25 cents a mile in fuel alone, laughable, however someone will take it, shame on them!!!!

 

You got me pegged, just call me Mr. Regulation. I am actually a business man and my business is trucking. And as a student of business I understand that the stronger our industry is the better we all do. A rising tide raises all boats.

And if you think what happens with rates is a 100% related to supply and demand then you do not understand this concept. It plays a partial roll but much less of a roll when we are talking about the bottom rates.

This concept is only factoring these two items - Supply & Demand. Additional market forces are not part of this. And if you study this concept you will see that, based on product, when you have a variance beyond a certain elasticity point then you have other market forces effecting the supply curve, demand curve or both. And when this happens it is a widely accepted economic principle that market forces will fix the issue(s). And absent the market you then see government actions.

So while you may feel that more O/O understanding their business, not just rates, will not help anything I would rather push towards that. Because for me I fear that we may be seeing a perfect strom brewing that will invite government regulation. Or what I like to call "Trucking Wellfare".

 

The other day a broker quoted me such a crazy low rate that I suggested he call Greyhound and put the freight on a bus...

 

Yes and then bubble bursts that there is no utopia. Supply and demand has 95% of everything to do with anything. Unless its for pure research, why would one mass manufacture a product that has no demand for it?

Take a look now. Diesel is high, rates are up (in par to diesel) and demand is declining. Warehouses are not stocking up and only ordering only on demand. Yes the same two words- supply and demand.

 

You got it stepnfetchit. Developing solid relationships with a few brokers and concentrating your areas that you operate in goes a long, long way.

A similar analogy would be like buying autos. If it is the first time you have been at a dealer, you will get quoted a price too high and you have to fight to get the price down to a level you can deal with. If you continue to use that dealer in the future and especially the same sales guy or gal, then each time you go in, you will get the better price without having to beat yourself up in negotiating. A similar situation is one I have with my tire and lube dealer. I am treated as well or better than a mega fleet when I go in, and I get excellent pricing and service. I trust them, so I give them ALL my business. In turn, I get immediate service when I call or come in, every one there knows me by name and doesn't treat me like just another customer. Even though I am just a one truck operation, I get oil delivered to my house for free with free pickup of used oil at a price that I have yet to see even Wally World could beat.

It is all about developing solid business relationships. You scratch my back, I'll scratch yours. Remember.... you are not only helping your business, but if you are a solid, reliable carrier, then you will be also helping the broker's business with the shippers and that broker will be looking for you to make the haul. The broker will be able to talk the rate higher with the shipper, and likewise, pass that on to you. You both win, and that is the name of the game. He will save the crap loads that don't pay well for the one time callers he gets and save the gravy runs for his core group of haulers that do a good job for him.