Cost Per Mile per product with multiple stops

Discussion in 'Ask An Owner Operator' started by bernielove, Sep 22, 2011.

  1. Sep 22, 2011 #1
    bernielove

    bernielove Bobtail Member

    3
    0
    Sep 22, 2011
    Eureka, CA
    0
    Hello,

    I am trying to figure out how to calculate the delivery cost per product. There are multiple products with multiple stops in one run. I know how to calculate the cost per mile but should I use that with each product? If one product(stop) is taken out that shifts the cost on other products.

    Any ideas?

    Thanks,

    Bernie
     
    bernielove, Sep 22, 2011
    bernielove, Sep 22, 2011
    #1
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Sep 22, 2011 #2
    paoldschool

    paoldschool Heavy Load Member

    896
    297
    Aug 8, 2010
    Mount Jewett, PA
    0
    You will have to figure out the percentage of the load that each stop is. Once you know that then you will be able to figure it out.
     
    paoldschool, Sep 22, 2011
    paoldschool, Sep 22, 2011
    #2
  4. Sep 22, 2011 #3
    NCBirdman

    NCBirdman Light Load Member

    58
    11
    Sep 14, 2011
    Hickory, NC
    0
    I will assume all stops will be picking up at same shipping dock.
    We have always figured total miles driven, if stops are in route then take your origin to the final destination miles then add $50, $100 or what ever your time is worth and add to the final per mile rate.
    If stops are not in the direct route then add the miles from origin to first stop, then that stop to the next stop and so on to get your total miles then add the stop charges.
    LTL can get tricky when pricing out, but worth it if you can get the pricing right.
     
    NCBirdman, Sep 22, 2011
    NCBirdman, Sep 22, 2011
    #3
    SHC Thanks this.
  5. Sep 22, 2011 #4
    bernielove

    bernielove Bobtail Member

    3
    0
    Sep 22, 2011
    Eureka, CA
    0
    Mmmm. Two very good ways of doing it. Any other ways?
     
    bernielove, Sep 22, 2011
    bernielove, Sep 22, 2011
    #4
  7. Sep 22, 2011 #5
    RedForeman

    RedForeman Momentum Conservationist

    4,875
    22,141
    Jan 30, 2011
    0
    Too many variables to create a useful model that produces a meaningful rate. The broker will sell the load to 3 other guys by the time you quote it. Figure your end-to-end 1/1 cost then use a daily revenue target to adjust the rate.
     
    RedForeman, Sep 22, 2011
    RedForeman, Sep 22, 2011
    #5
    BigBadBill and SHC Thank this.
  8. Sep 23, 2011 #6
    bernielove

    bernielove Bobtail Member

    3
    0
    Sep 22, 2011
    Eureka, CA
    0
    That is what I am finding. Too many variables.
     
    bernielove, Sep 23, 2011
    bernielove, Sep 23, 2011
    #6
  9. Sep 23, 2011 #7
    SHC

    SHC Spoiled Rotten Brat O/O

    8,484
    7,047
    Feb 26, 2011
    Westville, IN
    0
    Agreed, basically since you are the shipper, just offer it up at a rate you are comfortable with and let the brokers do the hard work..... that's what they take 40% for right :biggrin_25523:
     
    SHC, Sep 23, 2011
    SHC, Sep 23, 2011
    #7
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.