Whats a fair rate?

Discussion in 'Ask An Owner Operator' started by 04 LowMax, Dec 10, 2013.

  1. 04 LowMax

    04 LowMax Medium Load Member

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    Here's the scenario: my truck, my trailers, 8 axle, 30 tires on the ground, not overdimensional. Have app 40 loads to do for one customer, I do the billing, no other parties involved. 20 minute loading, 20 minute unloading. 95 mile haul, 2 loads/day. 44 metric tons per load. Fuel cost currently about $1.20 /running mile. App. 5 hrs / trip. What
    would you charge?
     
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  3. deskdriver

    deskdriver Light Load Member

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    Aug 6, 2013
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    fuel- 1.20 per mile
    driver- .42 per mile
    Maint- .20 per mile

    total= 1.82 per mile and that does not include hard cost such as plates, insurance, 2290's, Ifta, taxes, fica, comp, and ect


    1 trip would be 190 miles, so a rough Idea of your cost would be 350.00 per trip. So you just need to decide what type of profit margin you are looking for. I do not think it is out of line to charge 2.75 per mile, that would be 522.50 per run which leaves a profit of 172.50 on top of your wages. So for the 20 days that it will take you to complete this job you will profit around 6900.00.
     
  4. SL3406

    SL3406 Medium Load Member

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  5. DMH

    DMH Medium Load Member

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    How heavy is 44 metric tons. To lazy to look it up but sounds heavy.
     
  6. deskdriver

    deskdriver Light Load Member

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    Michigan
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    Keep in mind that when a customer offers you a large # of shipments in a row they are expecting a discounted rate and in turn you are getting 40 loads with a set schedule and a total of 40 min per load of "dock" time. It is nice to be able to know what you are doing for 3 weeks without having to search for loads wait in line at shippers and ect. If it was only one or two loads 850.00 if fair but for these circumstances I think 850.00 is to high, The customer will definitely be able to find a cheaper carrier that can still do a good job.
     
  7. deskdriver

    deskdriver Light Load Member

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    Aug 6, 2013
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    96,976 lbs
     
  8. SL3406

    SL3406 Medium Load Member

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    Jan 10, 2011
    Oklahoma
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    Did you miss the part about 8 axles and 30 tires on the ground? I think you're figuring cost way too low for the type of truck he has. Fuel at a $1.20 a mile is about 27% of $850. My first thought was a dollar an axle a loaded mile which is $760. At that rate fuel would be 30% which is the cheapest I would want to haul it.
     
    rollin coal Thanks this.
  9. deskdriver

    deskdriver Light Load Member

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    nope I see the # of axles and tires but 8.00 a mile?, Does a gravel train with 11 axles get 11.00 a mile? NO! not looking for a pissing match here, The OP asked "what would you charge" I would charge around 525.00 and you would charge 850.00. there is 2 opinions for the Op and He or She can interoperate it in which ever way is most beneficial for this lane and customer. Other things to take into consideration is if this is a long time customer or first time, is there future opportunities here, ect.
     
    RAGIN CAJUN and 04 LowMax Thank this.
  10. jlind

    jlind Heavy Load Member

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    Dec 21, 2010
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    Don't forget overweight permits which I assume you will need for gross, heavy is expensive stuff, anytime you get od/ow figures get higher!! The $850 per seems closer to me.
     
  11. rollin coal

    rollin coal Road Train Member

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    Sure looks like it.... There is a member here, Superhauler, who could probably give some good insight on this - recall him mentioning a $1 a mile per axle minimum.
     
    SL3406 Thanks this.
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