How do you set your rates?

Why is this so high?

You should be ~$1.65 or even less. The wages for YOU should not be included.

 

Wages should most definitely be included. Especially since he’s paying himself a salary. If you had a driver you’d include those cost

 

If it were me. I would price everything by the hour. That’s how I bid my local work. And I bill a minimum of 5 hours.
2.25 is operating cost. Add 30% for profit
2.25x .30= 2.925
2.92 x 45= 131.625 (you can cover 45 mph fairly consistently)
Make the hourly rate 130 for easy math.
130x5= 650. ( so 650 would be the minimum I would run for)

So let’s say a load was 250 miles. I would figure an hour to load and an hour to unload and 5 hour transit time. And 5 hours to return. So 12 hours.
12x130=1560
Or 6.24 a loaded mile
Or 3.12 all miles.

I realize variable cost will fluctuate with the amount of work, but this seems to be the best way for me. And depending on product you can adjust load and unload times you bill for. But it gives you a rough template. Adjust to fit your operation

ETA. This is also the template that I use to bid everything. Long haul or short haul.

 

I pay myself a salary. Every week. At the end of the year I will give myself a bonus if it allows.

Yeah, my template isn’t perfect. Sometimes I make out like a one armed bandit and sometimes I get shafted. But it seems to be the easiest way for me to quote on the fly.

 

36k miles a year from what I'm reading doesn't seem like much paid miles even if they're averaging $2.20 on all miles. If I start with the new company I leased onto I'm averaging only $2.10 per mile but from the end of August to now but the mileage is 2200 on all mileage per week (this would average @ 47 weeks if I can work that much 103,400 miles = $217k annually gross). With the corrupted scam companies I unfortunately leased to last year to now I barely grossed half of that.

Times unfortunately are difficult these days especially after reading how many medium to some larger fleets closing their doors. I personally am trying to run harder as much as possible because it's scary on how long the work is going to last. When driving through Michigan, Ohio and Kentucky stopping at a Flying J or Love's truck stops there seems to be more trucks parked earlier. Never a good sign. If the wheels aren't turning you ain't earning the saying goes!..

 

What lanes are those? Can't be the I75 midwest.

 

Nice to see someone knowing their numbers. If the herd is thinning I can only assume it's temporary. Once the slightest upswing kicks in there will be those that will be back. There have still been people coming on here looking to start with their own truck now in these times. When things do start to turnaround the best we can do is keep it on the down low. Keep those floodgates closed.