FIVE Dollar + GO Juice !

Is there a price per gallon where it is no longer feasible to roll? If so what would that be? You can't keep raising the fuel surcharge can you? Isn't there a point where the increases that get passed along the chain to the consumer that they can't/won't purchase some of the goods from the retailer?

Do you think the price for fuel will decrease or keep rising? I'm just curious if any of ya'll have an opinion just how far this will go?..Thanks

 

I've been curious about that myself. I mean, right now it's costing roughly a buck a mile just to keep the truck fueled, not counting expenses/wages/savings/etc. What's the breaking point?
As for the surcharge, I suppose you could keep raising it, but what's the breaking point there? At what point do the shippers say enough is enough?

 

Why should be apologetic for making money ???

We have been brokering out our excess loads since Nov 07, and have been averaging $3000 to $5000 a month in additional revenue.... Pretty big money !!!! Woo Hoo !!!

 

They don't. They either keep up or go out of business. The fuel surcharge is a formula for long term contracts you work out with the shipper or the carrier has in place. It's designed to keep the net price per gallon at $1.25 for people averaging 6 mpg. So if you're getting better than that, you'll naturally pay less. Most good customers will gladly keep jacking up the fuel surcharge to off set the price of fuel and pass the costs onto the customer.

Of course there will come a point where will be less and less willing to spend on certain prices for everyday objects. $6.00 bread anybody?

 

There ya go.

 

It's a different number for different people. For a seller of a good it is all about profit margin. If he is making 20% at one cost, and 10% at another, eventually he will reach a price where he makes no profit. Why bother selling something if you aren't making money? Then he will need to either lower prices on the good in an attempt to sell them, or go belly up.

For a consumer its a different number, it's the cost of filling up the F-350, versus the Honda CRV, versus the Miata. At some point (you hope) a consumer will adjust his lifestyle to fit his finances. What more important? the F-350 or lights on the house?

Bottom line is everyone has a price they will not, should not, or can not go above, whether the realize it or not is a different story.

 

The reason I asked is that I read an article that "stated" when diesel surpasses $5 p/g and factoring in the increasing surcharges, the costs for the business owner, and the end of the line being the consumer that some companies (not just the trucking industry) will begin the struggle to remain afloat. As of yet I'm not doom/gloom as I don't know how the trucking industry's rates are set up when it comes to the loads just curious is all.

I'm happy to hear that ya'll are doing ok because without ya'll we're toast.

 

Write when you find work....