10.5% surcharge ?

Discussion in 'Ask An Owner Operator' started by 2hellandback, Dec 19, 2008.

  1. 2hellandback

    2hellandback Heavy Load Member

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    Dec 19, 2007
    Blackfoot Idaho
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    fuel here is $2.15 is a 10.5 % surcharge reasonable?
     
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  3. RickG

    RickG Road Train Member

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    Jul 22, 2008
    Owensboro , KY
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  4. Cowpie1

    Cowpie1 Road Train Member

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    Nov 25, 2008
    Kellogg, IA
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    My per mile surcharge is based on the national DOT average cost minus a base cost of $1.25 a gallon and then divided by 5.5 mpg and rounded up. It changes weekly based on the National DOT average on Monday. Real simple calculation. Of course, if you were primarily operating in a specific region, you could breakdown the current average by region and do the same simple calculation. And, of course, you could change the values for what you consider a base cost or mpg for your calculations. I would like to calculate it at a base cost of $.35 a gallon and 4 mpg! Unrealistic, but it would make for a sweet fuel surcharge!

    Unfortunately, the OOIDA chart does not say at what average MPG the calculation is based on or the base cost of fuel for the calculation. Just from a little quick playing around with it, it would seem that they are figuring a base cost of $1 (give or take a few cents) and a 5 mpg truck. I would have no problem with that, but it might be a tough sell considering the base figures used by another competing carrier. Even the base figures I used are better for me than most other carriers are calculating. A lot of carriers are figuring on a 6 mpg average. Oh... lest I forget the recent ads by FAF on XM on how they claim to be cutting their operators some slack and now have the best fuel surcharge... based on 5.9 mpg. Gee... that is real nice of them to be so generous!

    If you provide a prospective customer with the simple formula I outlined, they can calculate it for themselves on a week to week basis and not have any surprises. Makes for a cordial relationship with your customer.
     
    Last edited: Dec 19, 2008
  5. RickG

    RickG Road Train Member

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    Owensboro , KY
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    There were other tables but they were on links with advertising I didn't think would be permitted . I know hotshotters that use 9 m.p.g. in their formula and it helps them get customers with their lower surcharge
     
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