Calculating Profits for a New Carrier..

Proxy · Sep 3, 2018

We have a handful of o/o under our authority and are direct with a large shipper that gives us loads throughout the week that vary in rate from one load to the next. What would be considered a reasonable profit margin to shoot for per load/tour or is it better to try to look at a certain amount of profit per truck each week? they run 5 days week, regional.

Now using the same situation above but you owned the trucks and hired drivers for them what would you shoot for after paying out workman's comp etc? we are in the northeast

I appreciate your input!

mover man · Sep 3, 2018

I am sorry, there are to many variables involved. I also am in the morth east but. I cannot answer the question with the little bit of info provided.

NYCNick · Sep 3, 2018

Proxy said: ↑

We have a handful of o/o under our authority and are direct with a large shipper that gives us loads throughout the week that vary in rate from one load to the next. What would be considered a reasonable profit margin to shoot for per load/tour or is it better to try to look at a certain amount of profit per truck each week? they run 5 days week, regional.
Click to expand...

If this were an exam question posed to me, assuming you're billing and paying out on a straight per-mile basis, I'd shoot for a 25% margin *after* your overhead based on the lowest rate they give you. Ask your drivers, but I think they'd prefer a consistent rate. If you hit that margin consistently, hand out bonuses to keep the drivers happy.

Proxy said: ↑

Now using the same situation above but you owned the trucks and hired drivers for them what would you shoot for after paying out workman's comp etc? we are in the northeast.
Click to expand...

I would shoot for 30% margins, knowing that best case I'd hit 20% because so much more could go wrong.

Proxy · Sep 4, 2018

NYCNick said: ↑

If this were an exam question posed to me, assuming you're billing and paying out on a straight per-mile basis, I'd shoot for a 25% margin *after* your overhead based on the lowest rate they give you. Ask your drivers, but I think they'd prefer a consistent rate. If you hit that margin consistently, hand out bonuses to keep the drivers happy.

I would shoot for 30% margins, knowing that best case I'd hit 20% because so much more could go wrong.
Click to expand...

thanks for the input!

Ridgeline · Sep 4, 2018

Proxy said: ↑

We have a handful of o/o under our authority and are direct with a large shipper that gives us loads throughout the week that vary in rate from one load to the next. What would be considered a reasonable profit margin to shoot for per load/tour or is it better to try to look at a certain amount of profit per truck each week? they run 5 days week, regional.

Now using the same situation above but you owned the trucks and hired drivers for them what would you shoot for after paying out workman's comp etc? we are in the northeast

I appreciate your input!
Click to expand...

What??

You find the loads and if it doesn't fit their needs, they refuse the work. YOU are not the one who needs to worry about this, your leased operators need to tell you what is acceptable to them and what is not.

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