How are Brokers NOT to blame?

Discussion in 'Freight Broker Forum' started by rch10007, Oct 14, 2022.

  1. Jubal Early Times

    Jubal Early Times Road Train Member

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    8 bucks a mile is a little cheap on that in my opinion. Especially if it takes a jeep to move it. I guess it might be alright. He is using your trailer after all.
     
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  3. PoleCrusher

    PoleCrusher Road Train Member

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    And if we're gonna go about getting together and set a rate, why not make it $100/mi, or $150, $200 hell $1,000,000/mi?

    Let's see who memes first lol.
     
  4. rch10007

    rch10007 Medium Load Member

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    Ok. What would put trucks in an area that would cause them to get "stuck" having to leave with a lower rate?

    I know, you instantly thought supply and demand...however, did you have to take a load into that area? What made you choose to take that load in the first place if you knew you weren't going to find a good load coming out?

    Is it possible to take loads and make the same money without taking high rates in and low rates out?

    Maybe O/O's need to stop seeking the high paying loads and work more on consistent rates than high rates? Or at least lanes where you can make a consistent rate...but, that would take us back to my concept of calculating rates...I have provided charts (for VANs) to show how some lane averages are significantly low and how I would avoid taking loads into those areas. Let the megas have those lanes and deal with the variations. The little guys can find loads that will provide a profit...IF you know how to calculate them and analyze the data. That's why I keep posting random lanes and what my calculations would be. If you do this for yourself, with your own operating numbers, you will see where loads are that will help you stay profitable.

    I'll also keep saying this: Offering somebody $1 a mile is a slap in the face...it doesn't matter than someone takes it for $1.
     
  5. Jubal Early Times

    Jubal Early Times Road Train Member

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    And if a frog had wings he wouldn’t bump his ###. Your inexperience is showing.
     
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  6. Long FLD

    Long FLD Road Train Member

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    You’re right. Supply and demand is made up. My question is what regions of the country currently have more loads than available trucks? As long as there are more trucks than loads the rates will reflect that. It doesn’t matter what you analyze or what you seek to teach others, until the spot market slice of the pie gets larger or the number of people eating from that slice or both the rates will reflect that.

    “Let the megas have those lanes”. What would happen if they didn’t have contract stuff on those lanes? Probably more loads on the spot market. And then what? Probably higher rates. Almost like more loads available for the available number of trucks.
     
  7. rch10007

    rch10007 Medium Load Member

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    You don't have to decide to take a load into FL from WI.

    Serious question: Right now, what lanes (VAN) in the country are paying enough to provide a profit to you given your operating expenses and profit margin expectations?

    Personally, given my base in northern AL, profitable lanes for me are Pacific NW, Salt Lake City, and PA/NJ. I can then research these lanes to determine what would be profitable coming out of those areas...and work backwards to find lanes that are profitable all the way home.

    I KNOW that flatbed, heavy, etc... are going to be different. I have not researched that equipment although I do get emails daily for me to quote lanes for flat and step. I haven't saved up enough to get a step yet, but have considered going that route in the future.
     
  8. Oxbow

    Oxbow Road Train Member

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    Sounds an awful lot like supply and demand to me.
     
  9. MartinFromBC

    MartinFromBC Road Train Member

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    $8 Canadian is about $6 American now.

    But I noticed that you ignored my question about getting the much needed information about the truck, route, mpg and such, before giving out your opinion on a price to charge a shipper/broker.

    If my tire cost is a dollar a rolling mile, diesel 3 dollars a mile, and we haven't even yet discussed insurance, truck payments, maintenance, depreciation, my wages, how does your model for pricing work?
     
    Last edited: Oct 18, 2022
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  10. Big Road Skateboard

    Big Road Skateboard Road Train Member

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    If it's the same money, what's the difference?


    Most sensical thing i've gleaned from this whole thread.
     
  11. MartinFromBC

    MartinFromBC Road Train Member

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    I never have based a rate on miles or kms.

    That would be the worst way I can think of to do it.

    I figure out a realistic drive time both ways, loading and unloading time, and then add in extras such as permits and escorts, meals, hotels if required, and then the profit needed to make it worth while, then give my price. It's a take or leave it deal, if they say no, I don't care, lots more work out there.

    Some jobs are way more in depth than that for me to price.
    Did a job this summer that i first drove up there in my 4x4 pickup, and had a good look at the route from pickup to drop off.
    Decided that I best hire a tow truck to lead me in, to give me a pull as needed, and another truck of mine, with a driver obviously, and a dozer on the trailer, to fix the road in spots, and offer a shove when needed, escorts, permits, hotel costs, meals for everyone, wages including over time, and 2 days and costs for my pickup to drive it first, then and only then, did i throw the customer a number.
    It was accepted by them within a minute.

    Tossing out a preprogrammed number, without any variables input before, seems like a bad idea. You don't even seem to take into account consideration for road work being done, the hwy could be closed for a blizzard or fatal crash for a day, we don't all burn the same amount of fuel, or run high speeds, or get good tire wear costs.
     
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