O/O what is your pay per mile, try to be honest.lol

Last year (8.5 months) 54,218 miles (51,236 paid) $148072 gross pay. I make alot in drop pay (avg 32 a week). If you want to physically work...the money is out there.

 

Here's the problem with the 'cheaper guy has a better freight base'...

If you quit tomorrow, what does that 'better freight base' do for you? Nothing. The guy who is limiting himself to make more money for every hour they work and every mile they drive will walk away with more money. That 'freight base' won't pay for retirement. Nor will it cover the unforseen or unfortunate sequence of events that puts a lot of people out of business.

Are they saving for big truck repairs. Future replacement? Retirement? Unexpected downtime due to poor health or poor freight?

No. They are 'making money' because everything is currently going good for them. Trucks running good. They're running good. But you never know when either of those two things will change. And your 'better freight base' isn't going to care one bit.

Make the most you can for the least effort. That's the very definition of a frugal business plan. Undercutting yourself doesn't help you in the end. If this industry is already in a 'race to the bottom', why do you insist on sprinting?

 

This has to be the stupidest comments I have read in quite a while. Last year I averaged 2.45 per mile at 77265 miles with 1.26 per mile profit. About 1/3 of those miles would be empty by the way. (Before paying myself). As stated before I draw 1000 per week as driver salary. I am not looking for more work. I am looking for better paying work. I have seen people haul loads for less than 1.26 a mile. In my opinion they are the ones that would be better off as a company driver than an owner operator. I am not out here wearing myself and my equipment out to make somebody else rich. They can make it on some other ######### back.
oh and sorry for being so blunt but ........well it is what it is. Unless you are JB Hunt or one of those others ( that have so many trucks they only need to make $15 profit per day per truck) this will end up biting you in the butt in the long run.

 

So because your operating costs are higher than someone else's they should ask for more money so you can maybe find better paying freight and potentially have them losing their load because the shipper can't afford those rates? I don't understand the logic here.
If I can run a load for 1.50 and still make a profit and you have to ask for 2.50 who's gonna get the load and make money and who's gonna be sitting? According to your statement I should ask for 2.50 because that's what you need to turn a profit.

 

No, I think they should run as many as they can as fast as they can as cheap as they can!

 

I'll be honest I'm not a o/o. But I've thought about it that's why I'm asking these questions trying to understand the logic here.

 

How much profit is in $1.50 a mile, even for the most efficient operation. My profit was $1.26 per mile for all miles and I counted everything possible for a deduction. He may be okay for a while with a truck and trailer that's paid for but what happens when he has a few thousand in emergency repairs or it's time to upgrade his equip. Or has payments and has to do a few thousand in repairs. It isn't going to work out in the long run. Yes I drive an old truck that is paid for because I like it, not because I have to. When I get ready to replace it, I will pay cash. A better approach in my opinion would be to have the most efficient operation as possible and still charge premium rates for a premium service.
If I were going to run for a buck fifty a mile I would just run a pilot car. I'm pretty sure that is the going rate for them right now. Why would I want to haul 48000 lbs for that? Not if I can or not but why would anyone?
to me that is like saying I would have more job options if I will work for minimum wage. Except then you would just be wearing yourself out and not your equipment.

 

First sentence was pretty clear by your earlier statement lol

you want to be in a position where your cost of operating is low and your revenue is high. If offered you a job at a retail location would you prefer to work 1 day a week for $400 or 6 days a week for $70 a day? That $20 sounds better but you're losing money taking that deal over the first option. Every time.

 

This is the easiest explanation of cheap freight all the time or sit some and make more, or even just "charge more because it's foolish not to get every penny you can"

 

It's more about knowing what lanes should pay what rates for the equipment you are running and for the time of year. What truck owner would accept less money when loads are plentiful with the mindset of "my costs are lower, therefore I can haul it for less" ????? This only hurts everyone! Know your markets!