Freight Rates

sorry, I couldn't resist !! I take a balanced approach. I do have sustainable customers, they just do things a little differently than yours. And they don't set my rates. I make them an offer, I don't always get it. If I got it every time I would be doing something wrong.

 

You can ask for anything, all they can say is no. You cant demand anything by definition. You may try another verb.

 

One hobo says to the other " I was the lowest bidder onn every job ". Your outflows are less than .75 per mile, fasinating!

 

Demand was a poor word choice. I demand a lot from myself, but I can only offer my customers options and suggest why it may be a good one for them.

 

Are you leased or operating under fmcsa docket. Nice to talk to someone that is more than a trucker but business minded. Epmtrucks@aol.com mc262265. Maybe we can catch up out there one day. A business person that drives his business.

 

I'd like that, anybody that can survive in this crazy racket as long as you have has my respect. Plus I like people that can take a little criticism and give it back too. So many people from my generation (37) are so thin skinned these days. It's okay to disagree with others, and you can still learn from them too.

 

I disagree. From hard earned experience every single time I tried to be what they viewed as reasonable it was never low enough. And when it was low enough it never lasted because at some point they came back wanting it even lower and took away when they found it. Everything with vans is based on price. Everyone expects vans for nothing because that's just how it has been for so long. There are enough new customers to replace the old that pricing myself out of anything is really not a worry. I have had several calls this weekend wanting time critical servives. Pick up at 6am Monday and drive straight thru for what!? Are you serious? No wonder it didn't get covered Friday sorry not interested. The fact that there are so many people willing to work for less actually, imo, plays into my hand. They've saved enough that when they have to dig deep it is sustainable as long as they're only doing one here and there. Like I said everyone wants something for nothing. The people who need your truck are not your friends and will toss you under the bus no problem as soon as lower cost comes along. I do believe freight in this country, even in down times, is diverse and plentiful enough that my model - exploiting critical needs - is sustainable long term. I'm going on almost 4 years now and it hasn't let up. I've also learned a thing or two about running at lower rates and making the same average but generating a larger gross that I intend to apply this year. So maybe I will get to $160,000+.

 

Well it was about 30,000 loaded miles if that makes a difference. But every mile costs. We live comfortably, debt free and want for nothing.

 

These people trying to push poor to marginal rates also never really come back with more if you do accept one of their loads. And they're not really so helpful with a low deadhead reload either. Which I'm not complaining about because keeping the truck loaded is my job but this idea of "you have to be reasonable with your rates or you price yourself out" is wrong. These people are only concerned about the load in the moment at the best, lowest price. That is why imo it just does not pay (nor profit to me) to do favors or be the best price trying to win business. If they like my service and call me back they're not worried about the price and that is fine. But I am not someone's doormat to be tossed aside as soon as a cheaper truck comes along.

 

I've got $45,000 fixed costs/yr. and 0.75 cpm variable on top of that (depending on fuel). 30,000 miles and $144k a year, I make $75k. not too shabby, but I really can't compare because I am not certain I can even duplicate those numbers. Probably not, and if I could it would take hours and hours of working load boards all the time. On the other hand if I can run 100,000 miles and gross $225,000 I net $105,000. And while it seems that is so much more work, these are loads mostly booked with an email or two, lined up a day or two in advance, and when I am home I am truly off work, not on call for emergency loads 24/7. It's just a better fit for me. Last year I averaged over $2.50/mile all miles for nearly 3 months too. If I push a little harder when rates are good and back off a bit when they are hard to come by I may be able to move that $225,000 number up. I know I can, I have more options out of key areas than I did last year.

Not knocking ya RC, don't get offended. You do talk a lot of smack about how great you do though and put down everyone else as if we are all out here taking any $2/mile we can get. There is a middle ground, and you don't have to be a master negotiator or run 3,000 miles/week to do it either.

edit - Oh, I see 30,000 was just your loaded miles. Well, whatever, you see how I do the math. "If it makes a difference", well yah, it kind of does. I can do a lot of things and live comfortably, for my business I want to know if I'm making money.