RV Transport Companies

I don't see the per diem happening with out the mileage going down. Fuel was supose to go up but that did not happen as predicted. I have been wrong before. I wonder what the companies actually pay to have the units shipped...

 

There are several different profit centers from an RV Transport companies perspective. Just to name a few:
1) Storage - This is the “on-the-lot” fee a manufacture pays to the RV Transport company to store the unit. Why do manufactures do that? Good question - to get priority deliveries to dealers. This, along with an expedite charge moves the unit 7-10 days sooner. Think of it as a logistic option. The same reason manufactures send products to shipping locations around the country to move freight. It’s a logistic benefit to the manufacture.


2) Contract agreements with specific manufactures - This is a premium that the manufacture pays to get his units “first in line- just in time”.


3) Dedicated drivers - a specific groups of drivers who deliver to a specific dealer group. This may have gone by the way side with the opening of the Camping World dedicated drivers. It’s a logistic advantage to CW to operate this way. Time will tell if it’s successful.



At the end of the day I would bet the operational margin is around 24-30%. The net margin, around 7-11%.

 

I kind of dodged the question. Its a line item on the retail window sticker on a lot of RV’s. Regardless of the destination it’s around 1.0 - 1.5% of the retail price. Now what is actually paid to the transporter is a per mile based rate. Around 20-25% above what the delivery driver gets. Again - some of the rates are negotiated between the transport companies and manufactures. They could be a little less or a little more depending on the additional services the transport company provides.

 

It was the year Katrina hit and I ran back and forth to Louisiana for months. Only stopping for fuel, delivery and pickup. 24 hour pickup and delivery. No waiting on either end. I slept about 4 to 5 hours a day. The rest of the time was rolling. The trip down was 1,000 miles and then the same backup then down again and etc. Hours of service were out the window from August 31 to the end of December. The trip back up to the yard would go by the house, so I would stop, drop off laundry, service truck if needed, mow in the fall and then leave. It wore me out.

You may think you are the only one who runs hard, but there are others. During that time, weather alerts were through the wife by phone. Not many storms to worry about in the fall and December on that route.

I could also state I have a hard time believing yours as well. 15 minute to load and etc.......

That year I only went home to mow and get maintenance done. I ran every week to Canada and other places out west.


In 2013, I drove 129957 miles
In 2012, I drove 149,311 miles

In 2014, it will be even less. My truck has over 1 million miles and I do not like working so hard anymore. I do not go out when the snow is around. I do not have to. The truck is paid for and so is the house.

I bought the truck in late June of 07. So, you can see it runs down the road.

 

I know of at least 2 companies you will be fined or fired for sleeping in the units. Personal use is NOT ALLOWED. One driver took some suitcases out of the bed of the pickup since he had a fifth wheel and did not want them to get wet. They were seen pulling the bags out of a storage compartment by the dealer and noted on the paperwork. They got in big trouble for it.

As far as the per diem issue. It may be because some are taking the illegal mileage deduction for the trips and not the actual expenses. They will be caught by the IRS. Standard mileage deductions for miles driven is for a car. Here is the definition of a car in the eyes of the IRS.

http://www.irs.gov/publications/p463/ch04.html#en_US_2013_publink100033960

Car defined. For depreciation purposes, a car is any four-wheeled vehicle (including a truck or van) made primarily for use on public streets, roads, and highways. Its unloaded gross vehicle weight must not be more than 6,000 pounds. A car includes any part, component, or other item physically attached to it or usually included in the purchase price. A car does not include:

• An ambulance, hearse, or combination ambulance-hearse used directly in a business,
  
• A vehicle used directly in the business of transporting persons or property for pay or hire, or
  
• A truck or van that is a qualified nonpersonal use vehicle.

Per diem plan that the dispatcher mentioned are not available to the drivers of the rv world since they are not employees. They get the per diem on the schedule C.

Have not ever driven seasonally in the years since 2003. So, I have no idea what you are talking about.

 

I know you and I have been up and down the street on the sleeping in the units issue. All drive-a way, (class A-C) drivers are sleeping in the units. All tow -away drivers are now allowed to sleep on the sofas in the trailers by several companies. As I said before it’s become a “don’t ask - don’t tell” kind of situation. If your company does not, it’s just a matter of time. I do know for a fact that the drivers that I have worked with in the past ,and still keep in touch with, spend at least 3-4 out of seven nights in the trailers. If they are sleeping on the sofa or bed is up to them.

If it’s as big as a problem and they get reprimanded - it may be time to move on. As you know there is very little loyalty among drivers.

As far as doing something stupid in the unit, I agree - you should be reprimanded. I don’t believe any transportation company is any position to “fired” someone in light of the lack of drivers now days.


As far as the per-diem issue. You get that we are driving “commercial vehicles” to deliver interstate freight. Our trucks are over 6000 pounds. The section you reference to is about using a car for a business expense.
That aside - The main point of the conversation with a current dispatcher was what can be done to attract and retain additional drivers.


Pay was the big issue - with over 85% of the drivers being seasonal, (that’s right - direct from the dispatchers mouth), more effort to making the position profitable for the temporary work force is now the main effort being put into getting the workforce delivery companies need during the high season, (February - June).



Bonus programs have been meet with limited success. Everything is on the table this year to avoid not having the situation the industry found its self in this year.


Gas cards based on miles, hotel gift cards, and Walmart Gift cards have all been discussed. The key words for next year will be what incentives can I offer to keep my seasonal work force delivering product in 2015.


Keep in mind - the Bakken oil field seasonal work, (Spring- Fall), is siphoning off a lot of the pool of CDL drivers who may have delivered in the past.

 

The drive away drivers in our company cannot smoke, drink, eat in the unit. I will have to ask about the sleeping though.

I mentioned the definition of car because many take the standard deduction for mileage for this reason. Many think they can take the standard mileage rate at 56.5 cents per mile. They do this thinking it is a car. That is the reason for the definition that I gave.

[h=4]Standard Mileage Rate[/h] You may be able to use the standard mileage rate to figure the deductible costs of operating your car for business purposes. For 2013, the standard mileage rate for the cost of operating your car for business use is 56½ cents per mile



You keep saying that most are seasonal. At our company, I would state almost 85% run all the time.

 

from your post:


"You keep saying that most are seasonal. At our company, I would state almost 85% run all the time.[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]”[/FONT]
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[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]You can “state” it all you want, but the math dose not add up. 80% of the RV’s around Elkhart are manufactured in Aug - Feb. As we see now the 2015 are on the production line. This year will last a little longer than last year as far as delivery’s are concerned. From a high of 7400 plus delivery’s during the last 4 month’s, (average), to around 200-300 during the next 7-6 months will be expected. [/FONT]
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[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]If we backed into the math and say that your company has 100 drivers - 85 would be full time, (85%). They are fighting over 20-40 delivery’s at your company a month, ( 400 divided into the number of current active transport companies), until March when we pick back up again! They may be “available” all year long to drive, but they are not driving full time, (1000+ miles a week).[/FONT]
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[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]You can “state” it all you want, but this will never be a full time , year round job for the total amount of drivers entering the delivery business. [/FONT]
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[FONT=Verdana, Arial, Tahoma, Calibri, Geneva, sans-serif]It will now, and into the future be a seasonal, temporary delivery job. Not saying that this is a bad thing - it’s just how it is.[/FONT]

 

Lastone In

I admit, your post are entertaining, I love those statistics you throw around. " 85% of the drivers being seasonal, (that’s right - direct from the dispatchers mouth)",---- "80% of the RV’s around Elkhart are manufactured in Aug - Feb",----"From a high of 7400 plus delivery’s during the last 4 month’s, (average), to around 200-300 during the next 7-6 months will be expected."

Did You know that 73% of all quoted statistics are made up on the spot? That's right, 64% are just made up. Yep, you can count on that being true because it is coming direct from a dispatchers mouth, 81% of all quoted statistics are just made up.

Now I know you will probably not believe me; but I hope you will believe RIVA. Here is a link to RV shipments for the last few years. It makes for interesting reading.

http://www.rvia.org/UniPop.cfm?v=2&OID=1132&CC=4128

With the industry shipping an average of 26,758 units per month in 2013 (RIVA statistics) down to 7400 plus units per month this year (your statistic), I am surprised there is a driver shortage. And with only 200-300 units to be delivered in the next few months (again your statistic) I feel confident the 30,000 unit backlog RIVA announced last month will be hauled away in no time.

Hey, did I tell you that 59% of all quoted statistics are made up?

 

Just like my old hockey coach always used to tell us, "Hockey is 50% mental, 50% physical and 50% luck" . . . er, something like that