95% of O/O (went broke), why is that?

I just started with my own authority pulling reefer. I can call negotiate a good rate but they won't load me because my MC is new. I have some contacts that will load me and their rates are decent. Tough it out for 6 months and more doors will open. So far in my conversations, rates haven't been the problem.

 

When you talk rates, every operation is different. By the time I hit my home market tomorrow night or early Tuesday I will have averaged 1.86 on all miles. At that rate I'm profiting a little over .20 cpm. If I can keep my rate at 1.80 or more I can pay myself the salary I want to make, the business pays its bills, and I'll have healthy profits into the bank. And I'll be getting home more, although that is not a concern for me right now. If a broker wants to try and have you haul for a buck a mile just politely tell them, I can't do it for that but maybe we can work together in the future, thanks for your time. I did that coming out of OH the other day and the girl called me back paying significantly more but I already had a load by then. I told her I'll keep your info and when I'm around again I'll give you a call. Always be respectful.

Be careful where you put your truck; as a one truck guy you can't go anywhere and everywhere like the big guys do. For us, every load counts as opposed to the big guys that focus more on capacity than ensuring every load is paying top dollar, I'm not saying they haul cheap, it's just a different mindset.

Some times that buck a mile load might make sense if you are positioning yourself for that load that pays 3.00 a mile. You have to play the game or you'll just sit and not get any revenue.

I researched lanes I wanted to run and who is posting loads in that market. The guys always posting loads in that market are the ones I am working on. Building relationships. I am working my way into a position that I'll hit the same places over and over and hauling for less than 10 brokers/agents. You can't build that if you run wherever the wind takes you. I researched this for months planning which lanes I wanted to focus on. I have two really good relationships in my home market and they have freight in a few other markets as well.

One is a guy I've know before and we've kept in touch. While on time off I worked at his office for 6 hours as he is just getting up and rolling with his own brokerage and trucks again. The other guy I brought in a box of coffee and a couple dozen donuts from Dunkin and sat down with him to shoot the breeze. My friend isn't quite up and running yet but this other guy has loaded me twice. Just playing the game.

 

Where did you pull this 95% number from?

 

Its not the broker fault that a lot of owner ops want to work for fuel. As an owner you charge hourly instead of per mile its fun that way

 

As I remember dad saying when he parked his truck and there was lots of work: "Sometimes its cheaper to park it than to work for peanuts"

Sure you make money but when the fuel bill and a bill for 26 tires comes in, there ain't much left over for the time invested.

 

now THAT is a true business man!

 

They pay whatever they have to pay. Merciless. You can demand whatever you can demand too. Nobody is forcing anybody to anything. For example, why not go to a barber shop and pay for a haircut $250, if everyone else in town will do it for 15. Too many trucks wanting to book a load in a given area is the problem.
I am in awe of those operating a new equipment, sometimes worth over 200K with payments of over 3k a month + insurance cost and work off loadboards. If I can take a load for 1.75 a mile and 1500 other trucks in the area will do too, no charm skills are going to make a broker give the same load for 2.50 to anyone else. Unless the broker happens to be Saint Francis from Assisi.