So I have a direct customer I deal with wanting me to do drop and hooks with a couple van trailers. The run is 160 miles each way and it's two days to unload the trailer and two days to reload so four days total with the van. Basically one run a week, no restriction on age of trailer so I can run my very clean older trailers that do nothing anyways. This will tie me up just on day a week, I can do the run in one day. This is my first drop and hook quote and I'm feeling a little hesitant on the rate each way. I feel like doubling the normal rate is a little excessive but I'm also basically giving them a piece of equipment for a week! Any thoughts?
Drop and Hook quote
Discussion in 'Ask An Owner Operator' started by ReeferOhio, Jan 15, 2016.
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I think your first thought is about right maybe a touch more because the rent on 2 trailers for a week is real money
ReeferOhio Thanks this. -
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Well, what the heck, the "normal" rate comes in around $550 each way. But now I'll be dropping a trailer and loosing that trailer for basically a week (4 days). I was not using it anyway (they don't know that) so I consider it an asset that should be compensated for because technically they are using it even if the wheels are not turning.
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I'm betting if you try to price in extra for "trailer rent" you won't be competitive at all. I wouldn't get greedy with it. If you have the trailers and they're not being used anyways just drop them at the customer and make money on the line haul.
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The idea is no service required other than drop and hook....so common sense is the customer wants a cheap quote....a no frills contract.
ReeferOhio, rachi and rollin coal Thank this. -
I provide a service at x dollars. They want additional service provided, their should be a cost associated with that service. Mind you not all trailers are just sitting around "paid" for, I have cost associated with running extra equipment paid for or not, and future replacement of said equipment. I get the view of @DustyRoad and @rollin coal make, I just feel as though their should be a cost associated with this service. Then again I've never done this before so I really don't know what I'm talking about, hence the question. I've got a lot to think about this weekend, meeting Monday.
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What does a van trailer setup as yours rent for on a weekly basis?
I'd figure least 70% of that.
Charge it seperate from the haul rate.ReeferOhio Thanks this. -
Considering you can lease a new trailer for round $450 a month, I would agree with Rollin and suggest not getting greedy. I would try to get $5 a day per trailer for the trailers to sit, as you mentioned they aren't new. Certainly not double the rate. IMO
ReeferOhio Thanks this. -
While some are suggesting to not take the trailer rental I could not disagree more. Now you will have more maintenance to deal with, especially on older trailers. And you have to take into account it's a contract, so if the trailer disappears by any method be it fire, roll-over, theft, etc. you will have to come up with a new trailer.
Now you may not worry about it, and that's something you decide as the business owner, but I would at least factor in a bit more for the just in cases.
-StevenRuthless and ReeferOhio Thank this.
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