Your make of this CL ad?

Just google the phone number on these ads is what I do. This one comes back to Rays transport warren MI they have a webiste. LTL refrigerated I can see those numbers.

 

Any successful company is making $2 mile on their cheap loads. $1.75 = Beenie Weenies!

A trailer last 10 years on average. You are looking at less than 5 cpm to own one.

 

$1.75 is what they advertise. They're no different than any other trucking company advertising rates looking to hire drivers. That's their "optimistic" rate probably zip code to zip code. Why do you trust that to be real miles? When real miles are figured in I'd be surprised if it was much over a $1.50 but if you're willing to believe every mile you drive for them will pay you $1.75 you wouldn't be the first sucker. $1.75 is cheap even if it is real miles. When people say you need an average over $2 a mile they are talking about hauling $2.50-$5.00+ a mile freight and lots of deadhead that can't be avoided dragging it down closer to $2 a mile. And you're not gonna get rich at $2 a mile. 1099'ing a driver to avoid paying taxes, well good luck with that business plan when the IRS comes knocking on your door...

 

Exactly.


I once negotiated a flat rate for a particular run, with a carrier who's O/O's were being paid by the mile for other work. I still remember the operations manager painting such a bright picture in order to get me to agree on a lower rate and without a FSC. We met in the middle and I told him that when the fuel hit a certain price we would need to meet again.

My point is that the other side is negotiating for their best interests, not yours, so of course they will make their numbers sound workable. I wouldn't count on any long haul operation producing more than 10,000 miles a month.

I would also clarify the language. Supplying and paying are two different words with vastly different meanings.

 

To lease on under there rights and they pay liability and cargo plus offer a trailer $1.75 is decent money. Most guys out here leased onto a carrier are makeing $1.50 or less for all miles pulling a van and some even pulling flats. I know plenty of them. If you had to use your own rights and insurance its way to cheap.

 

And that's why most O/O struggle.

 

Try $1.20 / mile as cost for operating your truck. That would work out to $4800 for 4000 miles. Your idea of operating costs is low.

 

Should also include the driver wage as part of the cost of operation. If you had to pay someone else that would be a fixed cost per mile. I have a cost of about 1.45 per mile and that's only the costs associated with moving it down the road. Fuel, tires, oil/grease, driver, repairs. Above that I have to cover truck/trl payment, ins, plates, all of that.

 

Unless you are willing to let your employee decide when and how he/she is going to do the job, the employee is NOT an independant contractor. If you tell the driver when to drive, what loads to take, and when he/she can go home or take time off, then the driver is an employee and YOU are responsible for paying the employee on a W2 and paying the appropriate taxes. Failure to do so on your part is tax fraud and you will pay the penalties for it. Stand up, be a responsible CITIZEN and pay your taxes!