C H Robinson

Psssst. I have dinner at least twice a year with someone who is very familiar with your operation going back to the days of American Backhaulers. He is still a great admirer of Jeff and Paul. It's possible I know more about the inside of CH (at least the brokerage side) than even you do. Have a good day.

 

That's terriffic, I'm still certain you dont know the profits we incur from load to load. I'm glad you have a close friend familiar with our older systems back to the days of American Backhaulers. As well as im sure you are aware of changes made.

As far as the $2/mile inability to run a truck, i would suggest better financial planning. And $2/mile is a minimum round trip rate you should be acquiring with any business savvy on booking loads with us.

 

When I book loads from CHR it's in the $3-$5 a mile range, sometimes more, on decent miles. $2 a mile loaded is what I consider cheap backhaul rate. On good terms with a particular agent and most everyone in that office used mine & others trucks. They know they can sleep when I cover something. They don't call everyday but they will call and ask me what i need from their cell phone after hours when they're really in a bind. I said earlier I think CHR is a good one and I do. Now these agents if I'm asking for a load wont pay rates like that, which is why I never ask..

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I'm sorry sir but I don't think you understands what it actually costs to run a truck. You are a broker, not a carrier. Lets break some things down for you so that you understand exactly what goes into being a broker and what goes into being a carrier.

What does a broker need to run his business?
1. Computer,
2. Cell phone,
3. 3 in one printer scanner fax.
4. Broker bond.
5. Customer base
6. Operating authority

That's it. All you need to be a broker.

Now lets figure out what a carrier needs to run.
1. Truck
2. Trailer
3. Operating authority
4. Insurance
5. Base Plate
6. Computer
7. Cell Phone
8. 3 in one printer scanner fax
That's what we need just to get off the ground to start hauling a load. Now lets get into what we need while we're on the road which also goes into operating cost.
1.Lights
2.Tires
3.Oil
4.Grease
5.Food
6.Fuel
7.Filters
8.Fuses
9. Securement devices
10. Washouts depending on what type of freight you run

That is a list of 10 things right off the top of my head and there's more that goes into it than that. Just to keep the truck on the road. We're not even talking about major repairs here. Now lets talk about the cost of all that. for you and for a carrier

Broker
1. Computer $500
2. Cell phone $75/month
3. Printer scanner fax $150
4. Broker bond (don't have one so I cannot say)
5. Customer Base no cost at all
6. Authority $300

Now for what we as a carrier have to pay for.

1. Truck $45000 total cost. Payments of $1300/month
2. Trailer $30000 Total cost Payments of $600/month
3. Authority $300
4 Insurance $500/month that's an average some cost more some cost less. All depends on EXP and what not. So we can use $500 as a safe average I believe.
5. Base plate $1600 48 state.
6. Cell Phone $75/month
7. Computer $500
8. Printer scanner Fax $150

Now for operating
1.Lights $25/month
2.Tires $5000/year. And that's for the cheapest crap you can buy. Put a set of Michelin XZA 3 Steers and XDA 3 Drives on and that's the cost for JUST the tractor.
3.Oil $50/month that's makeup oil not PM oil changes
4.Grease $10/month
5.Food $5/day (that's low that's about what I spend on food)
6.Fuel $2500/week
7.Filters $25/month
8.Fuses $30/year
9. Securement devices $200/year
10. Washouts depending on what type of freight you run $60/week give or take.

Now do you start to see what it costs to run a truck? Lets take into account now also that your average PM is about $350 that's oil change, brake adjustment, inspection, and a chassis grease done once a month. On top of what we spend on the road to keep the truck running. If you do a full brake job once a year on your truck and your trailer It's about $250/axle depending on parts and labor there's 5 axles so there's another $1250/year in brakes, we know what tires cost, insurance, etc etc. Now do you see how that $2/mile gets used up really quickly. Lets not forget break downs happen on the road too. Road service charges an arm and a leg to come out and fix something plus parts and mileage. We have to pay ourselves out of that $2/mile as well, and lets also not forget The state wants their money and so does the good ole IRS. I would suggest not telling us we all need better financial planning. That $2/mile round trip rate you speak of I have yet to see. I know CHR was doing a LOT of loads for Lincoln Industries way back when, guess what None of that paid better than about $1.70/mile I know my mom used to handle it. Then jacobson got in there don't know what the rates are now.

You have talked about tax write offs. We don't get much back on our fuel. I just forgot as well we have fuel tax we have to pay for, road tax (KYU, NM, NY), 2290 tax, and the list just keeps going. Many of us make less than your average company driver running at $2.00/mile. Run 100,000/year that's only $200,000 gross at 2.00/running mile you're not going to have a $2.00/running mile average if you're hauling for $2.00/mile LOADED. So lets do the math again. 100,000-10,000 give you 90,000 loaded miles a year. Okay 90,000x2=180,000. So we have now gone down to taking all of that out of $180,000 gross. It costs a lot more to run a truck than what you think it does. Just the fuel alone at $2500/week $2500x52 is $130,000 so right there that leaves $50,000 out of what you have stated to pay for the rest of the expenses not to mention a the bills we have at home. Do you see what I'm getting at now and how hard it is to actually run a truck on $2/a loaded mile.

 

Take food off-I'd bet brokers eat too that's a cost,but not a cost of owning a truck. Everyone eats lol ...some of us more than others

 

I understand those costs, but do you understand the leverage you have in tax write offs as a truck driver/business owner/miles/meals/appliances etc... Nearly all the things you have written can be written off so your point is invalid. Get a better financial planner than googling Quick Books. Secondly, I have the same exact ecxpenses as you to get to my work every day. I dont warp to work, i pay for gas, tires, lights, insurance, maintanance etc. So again your point is invalid. I also have a fixed income (salary) you have avariable income due to the loads you book. If you arent making it work out, maybe you need to book A.) Book better loads B.) Be more fiscally responsible C.) Choose a different profession. Everyone has bills, $2/mile isnt the top of market round trip rate, that is minimum. if your drive 2000 miles per week, that is $4000 per week. Work 40 weeks. (12 weeks vacation) you make roughly $160,000 subtract your $130,000 in costs you make out with $30,000 in income. Pay taxes and room for other expenses you have a take home profit of over $20,000 with a light work load (2000 miles) AND a 3 month vacation fixed in. . GET A BETTER FINANCIAL PLANNER! Not only to budget spending and saving but to help you know what you can write off. I know it is different state to state, but you should know you can write off more than you thnk.

 

Does Jim there in Brooklyn Park know you're on here pissing off the people who put the bonuses in his pocket each quarter?

 

Probably not i dont know Jim. Who am i pissing off? How am i pissing them off? I have insulted nobody, i have laid out facts and advice on how to make a relationship with a broker work. Obviously you arent getting the message. And i am sure his bonuses will do fine no matter who says what on here.

Do you see me asking if anyone knows if you're on here trashing a company that puts food on the table for carriers? Maybe you should take something from your own quote and learn a lesson.

P.S. Nice try on the name drop.

 

What does write offs have to do with anything.? You act like im going to get reimbursed for all my business expenses. If that were true I'd be getting a hefty check at the end of the year.

 

I guess I misunderstand what you are asking? As a carrier you would HAVE to know what a benefit write offs can be. I know plenty of business owners (not necessarily truck drivers) who had an efficiency expert in taxes itemize what they can write off. You may not be able to write off EVERY business expense. But year over year expenses that were formally not written off can literally add up to hundereds of thousands by retirement if dealt with correctly. My point is not to put such an overpowered emphasis on your rate per mile, (which is good) and focus more on what you are doing with the money you do make.

People on salary jobs also look into not only what the salary is, but what benefits they are gettting to put them in a better financial state in the future. A man making $100,000 per year and not saving any is in a worse postion than someone who makes $25,000 per year and can save some of it.

The fact you had to ask this question makes me wonder if your posts can be taken seriously.