Fuel cost is High, Does rates goes Up

First you need to calculate your cost of operation per mile. This should include maintenance costs, insurance, your pay and fuel.

example. A typical paid off truck cost of operation per mile let’s say $2 per mile. That’s the bare minimum you can ask for. Anything above that is profit.

hope that helps.

 

I personally feel that profit should be figured into the minimum. Using your 2.00 pm. With a profit margin of 20% that brings your minimum to 2.40. Anything above that is gravy.

 

Ok.... If you want to be in business then you need to start thinking about business as a whole.... Why do you think the price of everything you buy has gone up? Inflation... What is inflation? The value of money has gone down... So big companies can buy less product with the same amount of money compared to last year.... So what do big companies do to offset their rising operating costs? They raise their price to the customers. Thats why everything you buy is getting more expensive by the day... Got it?

Ok...

So if you own a trucking company its no different...if your operating cost goes up, what should you do? Raise prices for the service you provide.. Who is your customer? The broker.

 

that’s another way if you want.

 

My .02 right now it is definitely not the time to get in this business, besides fuel cost being higher, equipment cost are astronomical with almost very little way to get a return on your equipment investment. It is better to wait just to many unknown right now, and see how it changes with rate adjustments also with equipment availability and pricing. Nothing is making sense nowadays when it comes to equipment cost or availability everything is over priced by a minimum of 30% from actual value some of them actually go up to 60%. It is crazy to overpay by so much.

 

Same logic applies to those already in. The cost to fix your truck now is stupid! Plus parts availability sucks! So then what? By your logic you should sell out and get a real job? Just becasue your already established, doesn't mean your not effected.

 

At that point- in for a penny in for a pound. There is a difference in jumping in shark infested water and already in the water when the sharks show up.

 

Maybe, maybe not. Because now the average guy can sell out and make money on pretty much any equipment. So, why not sell out, pocket a bunch of cash and get a real job out of the shark infested waters?

 

This is correct. As the economy is affected and there is less freight, negotiate all you want.

The prices will be whatever they are. Take it or leave it. If you make a few pennies, be happy.

Oh, and any decent loads will instantly disappear with little negotiation. You will make call after call and be told the load is gone.

It's not something to look forward to. It is something to survive.

 

I reckon you can, but most of us don’t want a real job.