I do not and will not pull cheap freight!

I would not argue with anyone's claims of profit, but I can say that I would not be content with less than 2.00 per mile on all miles. That doesn't mean I don't pull cheap sometimes. I just want my average at the end of the year to be 2.00 a mile. That means my truck is in good shape and my family is happy. Everybody has their number. Maybe happiness is just breakfast at the cafe, an old paid for truck and time at home. Some are trying to buy a new house with a pool. Hard to analyze someone's entire life in a few words on a "friendly" truck forum. But who asked me? LOL

 

LoL

Sent from my DROID RAZR using Tapatalk 2

 

I updated my log book about 45 seconds before I realized I was writing on the steering wheel. Time for a nap.

 

I'm wondering what the difference is between a Salary and a Draw.
I understand what they are in a technical sense but why would one be better than the other.

Surely if your home life is stable enough to make a fixed salary acceptable then fine.
What is left over is retained profit for the business to use in whatever way you choose.

Is there some tax implication I'm not grasping ?

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Everyone has to decide for themselves. Not everyone can afford to set an example and refuse cheap freight. Some would rather earn fuel money then pay fuel money out of pocket to get to that next good paying load. I am of the belief of hauling cheap freight when it makes sense and its the lessor of the evils. I know it will bring me to a area of good freight or it will bring me home. I do not accept that its just part of the industry and I should accept it. I do know that if I don't haul it I know it will get hauled. I think that's a given and will always be the case no matter how many wish otherwise. Freight rates directly reflect truck availability and nothing else. If you have 2 trucks and ten loads the rates will be higher. If you have 10 trucks and 2 loads, well you know what happens. Just around me over the years I have seen little trucking outfits come and go. Mostly because they haul more cheap freight then good freight. The averages eventually kill you bottom line. Because everything around goes up. Repair costs, equipment, labor, fuel and so on. Yes, I believe the day will come when de regulation is regarded as a failure and we will be back to a few big companies running the show. The owner operator cannot compete in a trucking industry of big companies which can leverage rates against a small owner operator and still survive. Its like when Wal Mart pushed small businesses out of small towns. Its because overall Wal Mart could leverage itself with lower costs from volume buying. Its the reason 50% or more small businesses fail within a years time. Its not for trying, but its that the deck is stacked against you.

 

The inflows - outflows = net taxable income. 2.00 per mile - 1.20 = .80 net taxable income, 1.65 per mile -.85 per mile= .80 net taxable income. Yes you can operate for .85 per mile. Its the net more than the rate.....you can control your out flows more than you can control market rates in any given lane.

 

A mindset determines what rates you will roll for. If you "think" you will never get a good rate on anything because the rates are all down - you never will. Your expectations have been set and you will get thoroughly exploited because of it. Not many will look in the mirror and own up to it but it's true. Patience and timing is the key to everything.

 

@rollin coal, tried to pm you back but your inbox was full.

 

You will not be taking advantage of if your know your numbers. Its about the taxable net.