miles not adding up!

I think most fleecers cannot read, or at least cannot read the contract. The best information always comes from the truck stop lunch counter. Big bucks made by all.

 

I don't think it is that they cannot read. It may be they didn't take the time to read before signing. The excitement of getting that shiny new(er) truck is part of it. Sometimes (often?) it may be naivete about creating a business plan, plugging numbers into a spreadsheet, and reviewing it with someone that might give valuable input.

Every time I had a business failure I can say that unfamiliarity with what the business was all about was a leading cause of failure. Usually it was not getting ALL the expenses accounted for in the plan, then realizing I just bought a low (or no) paying job.

I still don't understand how fleece purchase operators are making a profit with the dollar a mile they are getting paid. The owner of my truck has four trucks, three are leased on with Swift. He's been with them for years, but can't tell me what his cost per mile is per truck. I generate a lot more revenue with the fourth truck, running flatbed to the oil fields. He could do better with his other three trucks if he got his own authority and did nothing but book loads off a load board, let alone develop some broker and customer relationships.

 

You are probably more correct then I am, but of course I was just being facetious.

I think that is the common problem with all business, especially trucking, especially fleecing.

Obviously this forum from time to time gets a fleecer here posting their BIG take home numbers. When I look at it I see one thing or another that is not accounted for and once you account for them their real take home looks like nothing. Commonly self-employment taxes are not at all accounted for. Another huge one is they assume that the $.10 CPM they sock away in that maintenance account is actually theirs. They never account for the fact most fleets are spending that $.10CPM and another $.10CPM more for around $.20CPM in maintenance. And most of the fleets spending that figure pay wholesale on maintenance with in house mechanics. Fleecers do not have that option by most contracts, they get to pay retail for their maintenance. And when that maintence deficit catches up with them, the usual excuse is they got a 'lemon' for a truck. It wasn't that they were unrealistic about actual maintence costs in your business model, they neglect responsibility by trying to claim they pick the 'wrong truck.'

As you know I worked a Swift. With plenty of long wait times and long drives, I too have ran Swift's fleece numbers in my head and on paper. Could be any mega as well. I don't see how they come out any good for a fleecer. I can see how you could make coin in the oilfield or off a load board, but at a Mega?

 

The thing is, you can bust your ### trying to make $3,000 in gross revenue a week and run 3,000 miles to get it. If I generate $3,000 gross revenue to the truck I consider that to be a REALLY bad week. Even with the downturn in the oil field I average just shy of $5K a week, running 2,000 miles a week (although the miles are harder on the truck with off road accounting for about 8% of all miles).

If oil freight is really slow or if I need to find a backhaul from a long outbound run, then I chase my own freight on load boards and have developed relationships with some good brokers. I generally don't touch freight below $1.50 a mile for a backhaul unless it gets me back to home base directly, without tying up my deck with freight waiting for an unload. Often it's better to deadhead back. I average close to 40% deadhead miles. If you haul low revenue freight you have to keep your deadhead miles below 15%, meaning you are stuck in bad situations waiting for freight.

Don't haul cheap freight.

 

Is that a $1.50 to you or to the truck? And is that 2000 miles total or 2000 loaded with 800 (40%) empty?

 

That's $1.50 to the truck, if I'm looking for a backhaul. I make 25% TTT, 60% for extras like detention time.

2000 miles is all miles, so averaging 1200 miles loaded. But then the tariffs for oil is really high, between $2.50 to $6.00 depending on length of run or if Hazmat is involved.

The thing is you can sit for a day or three between loads, not like last summer when I could burn through a 70.

 

I lease with HT/Prime.
Dispatchers with many companies want you to be happy with whst they give you.
I try to explain to the dispatchers why I turn down certain loads and accept other loads. I explain to them I'm making payments so give me good runs. I will take a bad run to get to area where freight pays more.
You have to learn which area pay and which will make you lose money.

 

I lease at HT/Prime.
Our maintenance cost is $.08 a mile. No account we pay that to cover anything. And road hazard is like $.02 a mile.
Tires and any breakdowns or tow are all covered. (Knock on wood) I might be on the loosing end because in 6 months only thing Ive down is PM at yard and I'm gonna go in and get new steer tire on weekend (or rotate tire, wearing on edge) But only issue has been road call to change a flat on Prime trailers couple times. (Paid for by Prime)

 

Paid Miles are only a piece of the puzzle...

If you are paid city to city but get paid twice as much CPM as if you were paid actual miles then you are money ahead...

Look at the bigger picture.

You need to see the total paid per load and determine if you are making money or not... Shop around and see if the total paid at other carriers would be any higher than current.

Then find out if you have any options under the lease thst you signed... You might be stuck until you complete the lease... Or pay to break it.

Good Luck,
MD

 

And if it became a minimum wage hourly job would that still be the way to go???

How one gets paid is rarely the important part... If the total paid for the job, month, year is worth the labor put in then it's worth it... It really doesn't matter if that pay is based on CPM, job, hourly, or even salary.

I look at my job as being paid for the job... That job includes several aspects.... From pre trip to paperwork... That pay fluctuates slightly depending on how far point A is from point B but other than that it doesn't matter too much.

But that's just one drivers view.