Caution Prospective Independent O/O! My Embarrassment.

Discussion in 'Ask An Owner Operator' started by TallJoe, Oct 20, 2017.

  1. Mattflat362

    Mattflat362 Road Train Member

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    In my mind you charge more with a paid off truck because you are banking for the FACT that it WILL need replaced or rebuilt/repainted (6-8 weeks down?).

    I am going to keep raising my rates until I hear more agry grunty breathing on the other end of the phone.

    If a broker doesn't say, "I'll have to get back to you on that", as you hear a long breath out....then your quote was low! LOLOL.

    Maximize maximize maximize! Or be driven out of business!
     
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  3. Tug Toy

    Tug Toy Road Train Member

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    I use a "cheap" truck to get HIGHER rates. I dont have some big payment breathing down my neck! I can wait till I get the rate I want instead of just enough to cover the payment that due on Friday.

    That being said I have $50k in my old "cheap" truck. It's amazing how much you can spend on them. In the end, I could have made the payments on a new truck but I know I could stop running tomarow with no long term risk.

    Priceless!!!!
     
  4. Mattflat362

    Mattflat362 Road Train Member

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    I am starting to agree but at least they are old and cool and we own them! I pay as I go so I won't leave any debt or broken lease/bank contracts on a truck if I get hurt or die. And my wife can sell my truck for 10k and actually have zero debt or issues.

    But yea man they eat money like I eat...well...anything in front of me!
     
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  5. Tug Toy

    Tug Toy Road Train Member

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    Well I don't know how "COOL" mine is?

    Same deal, could sell truck and trailer for a couple months of living while I find a desk job again. Lol

    After the money spent over the last 2 years the rate of $$$$ spent on repairs is going down drastically.
     
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  6. LoJackDatHo

    LoJackDatHo Medium Load Member

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    Hopefully I uploaded this correctly. Operational costs of private fleets. National study. Hope it gives some insight
     

    Attached Files:

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  7. TallJoe

    TallJoe Road Train Member

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    Interesting report! It means that the cost per mile) exceeds way over 2.5 easily when considered a driver's pay. If I were to hire a driver (let's say for 50 c a mile) then with an additional cost of then mandatory worker's comp and payroll cost I'd be left with nothing or a loss. This report also shows the freight rates need to be at 3 dol a mile to justify the costs and effort.
    BUT the crucial questions remain...who's paying consistently 2.5 - 3 dol a mile? OR how to make them pay that? Load boards rates are what they are because people agree with them. So maybe the sad truth is that relaying on load boards only e.i. spot market will slowly but surely lead someone to financial fiasco because, if you ask me, not too often I see them brokers willing to pay as much on regular basis and everywhere.
     
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  8. Mattflat362

    Mattflat362 Road Train Member

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    Good stuff!!!
     
  9. LoJackDatHo

    LoJackDatHo Medium Load Member

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    I think, which I shouldn’t do, that this is the reason for such a high failure rate. That or that report in particular has some very inflated numbers. I don’t know for sure. It’s a 50 plus page PDF that I wish I could share on here. I have heard some higher-ups at a private fleet that said they don’t Backhaul anything unless it’s $4.00 a mile. They said otherwise they make no profit and they will deadhead back to their warehouse for another load instead of hauling for free. I asked where they find loads like that, they said you have to know the right people, but it’s out there. I’ve read some other reports that state operating costs are $1.78 for Midwest region and $2.30 for eastern region and I can’t remember the west and SE regions. Just trying to pass along info. Everyone’s costs are different but I think this is why you see a lot of guys working into their 70’s and up. They aren’t making enough throughout their career to retire. Who knows, if we had all the answers, we would be rich and bored :rolleyes:
     
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  10. boredsocial

    boredsocial Road Train Member

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    That infographic is intended to help trucking company sales people sell customers on those kinds of rates. It's as real as Kraft telling you that their cheese is good for you.
     
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  11. Scooter Jones

    Scooter Jones Road Train Member

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    I read that graphic online a while back. It's Pie in the Sky.
     
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