Mercer Question

But they still did it for a while

 

And that's why I answered, you asked a queztion

 

I think he's referring to the small 50-200 truck carrier who's cutting the rates. Them company called summerfield is who got my cousin direct.

 

While they might have a lower operating cost I think the strategy their most likely pulling is a loss leader.

They wouldn't need to raise the rates a year after they got the contract if it was sustainable.

McDonald's sells cheeseburgers for 99 cents but they cost $1.40 to make, they make they're money back on the drink 90% of people buy for $1 that costs them 16 cents.
The megas are making their money back on the accounts they already have.

 

And I'm not sure I agree with the lower operating cost theory. The large carriers have hundreds, if not thousands, of employees that aren't drivers. Plus large offices and drop yards all over the country. Just think about how much money a company like swift has tied up just in land.

 

Think about how much a company like Swift has tied up in lawyers! Haha my god, that legal department is probably the busiest part of that company.

 

Those mega carrier rates just aren't as low as everyone thinks

 

I did a project back in high school and even McDonald's don't take a loss like that. It'll cost .60-.70 cents to make a burger and factor in expenses they only profit 10 cents a burger. But they sell thousands per day. As far as megas go they generally don't take cheap freight like the consensus would think. They have to show their numbers like spyder said because they're a publicly traded comapany. Now if you wanna know who's killing you then it's the guy/small fleet that's running for peanuts just to keep rolling for whatever reason like here in Florida these guys wanna run local intrastate so they run 1.20-1.80 on short miles just to be home every night or so they don't have to leave the Southeast cause heck even Georgia is pretty much a black hole as far as rates go

 

There is a guy on here who has been leased to swift for a few years, he claims swifts rates are 10% higher than average... You might be right...