Dilemma, good customer, good service, should I ask for more $?

If you are leased on aren't you getting a fixed percentage?

 

Probably gets a percentage of the load, so the more the load pays, the more he makes.

It’s a crapshoot trying to up the rates. If they think your service is worth it, they may go for it. If not, you could lose them. Nobody on here can tell you a perfect answer to this one.

 

I would go in and ask for a 23% raise. What is the worst that could happen they tell you they no longer need your services!

 

WHAT does your contract say about compensation?

 

Prepare some written documentation, go in and explain, that do to rising costs you regretfully are being forced to raise your rate.

Explain that this is not to try to pocket a larger profit, but to keep the costs stabilized so that they the customer will be able to keep taking advantage of the excellent service that have been receiving to date.

Your customer is in business also, they should understand that costs do nothing but go up.

 

If you were a broker how much could you realistically cover it for? Compare that to what you’re hauling it for now. That will give you good insight into it. Also, if freight is up 20% in the last year then a 10% increase is probably doable without too much risk of loss. They are either spoiled and will kick and scream, or they are smiling knowing they have been on a killer deal. Depends on the shipper. I’ve had both and generally the spoiled types you’re better to just move on and haul when they call for what you need.

Ps. Never burn a bridge though or there will be no future opportunity which only shoots yourself in the foot.

 

Sometimes one way you can approach it is like this: “I have really enjoyed working with everyone here at x company over the last year. My goal is to continue on for another year but unfortunately am going to have to slightly increase my rates. It’s never been more expensive to operate a tractor/trailer, and I would be happy to continue on for an 8% increase.”

Good luck.