I can’t even begin to wrap my mind around $1.50 a mile, not for live cargo anyway. We need fresh baling twine on the truck every trip......
I have a tendency to love being efficient and our primary driver loves miles, and has cried “uncle” a couple of times recently. There is no “waiting for a call” that would justify a rate premium.
What to charge myself per mile?
Discussion in 'Ask An Owner Operator' started by Accidental Trucker, Oct 17, 2019.
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LOL, We got out of the hay business in the 90's, so that price was back then. lol
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You might like figuring an hourly or daily rate. I've personally seen $90/hr charged & heard of up to about $120/hr.
My research & figuring shows $900-$1k/day seems to be a reasonable goal, depending on costs. -
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The other way is to figure cost plus. Figure ALL your trucking costs, which you probably know anyway. Then figure what it would cost to get a premium driver to leave his job and come work for you next week You are a small carrier so you need a PREMIUM driver. A sub standard driver will make you uninsurable in a month. I might venture a WAG you're looking at $.60/mile for all miles + benefits + the employers share of all the deductions....and $2/mile to cover the trucking so over $2.60/mile cost. I would guess you're like me and Wal-Mart and everyone else.........the manufacturing business subsidizes the trucking business. -
Setting a rate based in spot market rates seem to be self-defeating and could cheat the employee.
But again we don't know much other than wha that op posts about his business.Accidental Trucker Thanks this. -
Accidental Trucker Thanks this.
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Why per mile?
You have a lot of fixed variables with data to back it up - fixed # of loads, mileage, time, etc....how do you value the runs as a whole?
Given the fixed #'s, you have to adjust for fuel and profit margin of whatever you're making and selling.
I'd price it as a load - 600.00, for example - and then adjust around for spots in fuel and expected margin of goods when loaded; giving you a window (again, for example) of 600.-900.00 per/load.
Sort of a rough sliding scale per load with built-in profit sharing.
Or just go per load and give out quarterly bonuses based on the above factors, just in a three-month lump.
But I think mileage is adding some unnecessary granularity in the payment side of things. You know the loads, you know the distances, you know your costs. Where does the load need to be?Accidental Trucker Thanks this. -
The question here is how to account for costs fairly to the “stake holders”. The real accounting, if you will. -
Still, because I’m trying to benchmark the costs to the outside world, cost per mile is probably the correct measurement.
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