How are you still in business ??

Corporate contracts. THEY get a discount.

 

I'm paying up to $1.00 less per gallon than what you see on that big neon sign...

 

Most folks that Fuel up at the chains are not paying the sticker price. We have fuel cards that are run by 3rd parties that have agreements with sellers. This is how we can get buying power by being the little guy. The big boys may have agreements directly and not need a 3rd party card scheme. Some Fuel sellers will work directly with small companies, and that amount of fuel that they purchase will dictate the amount of reward in a discount. Local oi companies, and some smaller sellers such as Sapp Brothers will work with a small company. About the only people that are paying full price are the ones that don’t know any better. Folks that are in business are negotiating everything. Tires, batteries, labor, parts, etc… being a business is negotiating what you sell and what you purchase. Just think about all the things that you negotiate how much they affect your bottom line at the end of the year, or even a decade… All part of the game.

 

Discounts don’t cancel out the recent increases in fuel prices. Couple that with the recent big drop in rates (van spot rates anyway) and it’s just not worth being out here.

I’ve sat out most of the winter so far. I’m basically just running enough to pay the bills and my measly salary. Not going to fight it or accept $1,50 crap loads. The way I look at it now is I’m going to try preserving my truck until things improve.

 

Seems to be a sound plan. Your spot on about the Fuel discounts, I’ve noticed the fuel discounts are usually worse when fuel prices are high and better when fuel prices are lower. The downtime gives the opportunity to establish a new customer base, sharpen the pencil in your operational expenses, or some recreation. I’ve been doing better since holidays ( seasonal increase), after the new year ( bad weather), and now ( no reason but capacity drop). So did some guys pull out and not renew ifta? All them migrants got to eat? Something’s changed for me on my spot fill-ins. I’m back to over 1 year ago rates. The amount I am being hired to haul refrigerated loads is much higher than rates advertised. I notice a little bit of stress on brokerages on covering their loads. I get more calls and emails of last minute loads since 2 years ago. Tide may be turning? We shall see if it continues. -Reefer Midwest- Praire-TX area.

 

Fuel surcharges help. Considering fuel is around 50% of most Owner Operators expense having a good Accountant also helps. Budgeting is key in these times. Fuel discounts is a necessity.

 

You can push that percentage down buy a different approach. Value added services, multiple drops, more services relying on trailer spec vs. just power unit.

 

I was doing okay finding loads I could live with a few weeks ago. Nothing to brag about by any means but I wasn’t crying while doing them either.

Just got back out here after a couple weeks home and I was unable to find a weekend load worth doing so now I’m stuck. I staged myself a couple days ago in Savana, GA knowing something would pop..Had to get away from the house because my mother-in-law is there and dying of cancer. Otherwise I’d have stayed there until I found something.

It just boggles my mind at how fast the $1.30-1.50 loads fly off the shelves! I just don’t know, maybe it’s a psychological thing where they think if they keep moving they’re making money.

I could grab a $1.75 load out to CA on a tight schedule in the morning but it’s crap rates out of in CA also. Nothing is making sense right now for me but I will survive and figure it out eventually.. I hope!

 

The ones hauling for a loss will drop off. A few months or a year or two. Will not be able to repair major breakdowns or insurance costs. Just a matter of time. What are the most profitable lanes for your trailer and specialty… stay there and don’t leave. If we are in an overcapacity are there any services you can offer that the others cannot do well? What if you can do those a better than the rest. Could that offer a few more cents to your revenue per mile? Having a driver, a truck, and a trailer is something almost anyone can provide. Stay away from that and find a specialty. Even if it’s a minor service that is not super common, that little increase helps. Load after load, quarter to year… Every bit helps. We cannot compete with a mega providing the same services that they provide. We just don’t have the buying power on our expenses. We can be more flexible, nimble, and the most important, accommodating. When asked, “ do you do 4 stops and such?”
“Yes, but we prefer 20.” Be the clutch player than ask for more money on the second round. They will pay. Make more dollars by driving less and perform value added services. Blanket wrap, high risk freight, product monitoring, quality sampling with sharing product data with the buyer to ensure product is correct before it gets delivered. The little bit more they pay you for this saves them thousands from boo boos that can be the result of a discrepancy. It goes on and on, and is limitless. (Kind of like my rant) As soon as rates dropped and fuel went to the moon. I decided to change. It worked. If it’s good in bad times it will work even better in the good.