Opinions on pricing weekly load to dead freight area

Discussion in 'Expediter and Hot Shot Trucking Forum' started by Midwest1, May 4, 2017.

  1. Midwest1

    Midwest1 Medium Load Member

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    Jan 22, 2014
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    I have a customer who wants me to do a weekly 550 mile trip. In the past I have done this for them usually once a month and charge them $1600. This is going into a dead area for outgoing freight so I always come back empty.

    So my question is what do you guys think is a fair price? There a good customer and I want to be fair but I feel like $1800-2000 would be more in the range.

    Any input would be appreciated.
     
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  3. Ryan S2016

    Ryan S2016 Medium Load Member

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    This is just my opinion, but with my direct customers I base all my loads on whats it gonna cost to run my truck. How much is it gonna CPM, how much will the truck EPM, fuel estimates, traffic delays, and in your case how much is it gonna cost you to run dead head for 550 miles back. I get it's important to keep direct clients happy, but your not in it to save them money, your doing the work, the driving, the fuel, the cost of repairs and PM on your equipment. If they are a good client and have a good relationship with you professionally then they should understand your rates and respect that. You can also go on a few freight load boards and see what the average rates are. Some boards will let you access the loads but only give you examples not actual customer names until you sign up. Anyway that's my two cents, hopefully more people will reply and maybe have other help for you. Good Luck and stay safe out there
     
    Highway_Executive Thanks this.
  4. rollin coal

    rollin coal Road Train Member

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    So if $2,000 is what you need then that's what you should charge. That said maybe start looking for load board options from the dead area back to your customer. Has to be a no hassle option though. Maybe you can grab an extra $500 or so from that? Yeah I know you said it was a dead area. And finding the perfect broker option back is a long shot. I'd at least take a stab at it. It's a little more work but you're making the revenue and giving them more value. Failing that it would be $2,000 to go there or a no go situation.
     
  5. Pedigreed Bulldog

    Pedigreed Bulldog Road Train Member

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    ...or work out a deal where they pay the higher price figuring a bounce back from the dead area, but get a little refunded to them if a back haul is available...say 25% (or whatever you agree to) of whatever the back haul pays. That makes sure you're profitable making the frequent run for them, but also provides the opportunity for them to save a little and for you to earn a little more IF return freight is available...keeps everybody happy.
     
  6. Midwest1

    Midwest1 Medium Load Member

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    Jan 22, 2014
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    I would rather just try and negotiate a higher rate and plan on dead heading back everyt time. I'm making money at the $1600 but feel there's room for improvement. I'm going to have a chat with them next week and see where it goes.
     
    Chasingthesky Thanks this.
  7. flatbedcarrier

    flatbedcarrier Medium Load Member

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    Jun 8, 2005
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    Midwest1, if they've been moving freight in this same lane for awhile they're probably already expecting you to hit them with a rate increase. Many trucking companies raise the rates on their customers this time of year anyways. When you talk with them just let them know where their freight is going there's zero outbound freight. You probably won't be the first trucking company that has told them this. Just be reasonable and they should be understanding.

    The only thing is, this does has the potential to back fire on you and leave you without a run. It's very possible that they could have another carrier waiting in the wings working to get their foot in the door. Shippers changing Carriers to save a nickel is pretty common practice. Carriers typically offer a low rate to get their foot in door, and then when they feel that Shipper can't live without them they hit them with a rate increase. For many Shippers this is a never ending cycle.

    Had it happen to me with one of the sign companies I use to haul a lot for. Had a Owner Operator under bid me by a nickel per mile. Shipper tells me if I can match his rate, I can keep the work. I said no thanks, good luck. A month later that Owner Operator raised the rate on them. The Shipper called me back and said I can come back at the same rate I was at before. I said sorry I found a new Shipper willing to pay more per mile than they were. If you want to move my old rate up a nickle I might be able to give you another truck. Lol
     
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