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TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board
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<p>[QUOTE="Ruthless, post: 6841483, member: 48360"]As a response to a couple comments made months ago, regarding private fleet costs: </p><p>Private fleets are trucking their own product outbound- which means they can make or lose money on the "trucking" to their customer depending on how it suits them. They are selling the goods they are trucking, so generally they are either making money on both sides, or making enough on the product to ship it at a minimum recorded charge (Think of all those places that tell you "free delivery" on appliances or mattresses or whatever item- it ain't "free" just because the line item isn't on the invoice).</p><p><br /></p><p>However: private fleets make their money on selling their own goods, and as was apparently overlooked in previous comments, it costs them more to take cheap freight because while the rate may cover some of the costs involved with the actual variable truck costs; they are losing money by not having that asset available to move their own product if the (brokered/backhaul/whatever other freight) doesn't pay well and go quickly and smoothly.</p><p>~Cost of lost revenue (albeit from a. Different stream, utilizing an asset for a tertiary form of business does have additional costs because of the primary business not being serviced).[/QUOTE]</p><p><br /></p>
[QUOTE="Ruthless, post: 6841483, member: 48360"]As a response to a couple comments made months ago, regarding private fleet costs: Private fleets are trucking their own product outbound- which means they can make or lose money on the "trucking" to their customer depending on how it suits them. They are selling the goods they are trucking, so generally they are either making money on both sides, or making enough on the product to ship it at a minimum recorded charge (Think of all those places that tell you "free delivery" on appliances or mattresses or whatever item- it ain't "free" just because the line item isn't on the invoice). However: private fleets make their money on selling their own goods, and as was apparently overlooked in previous comments, it costs them more to take cheap freight because while the rate may cover some of the costs involved with the actual variable truck costs; they are losing money by not having that asset available to move their own product if the (brokered/backhaul/whatever other freight) doesn't pay well and go quickly and smoothly. ~Cost of lost revenue (albeit from a. Different stream, utilizing an asset for a tertiary form of business does have additional costs because of the primary business not being serviced).[/QUOTE]
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TruckersReport.com Trucking Forum | #1 CDL Truck Driver Message Board
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