Newbie wanting to Haul Grain

We already have to have DOT numbers. We have full medical cards already and are on with a group for random drug and alcohol testing and all that jazz. Only thing I think I would really need to do is get regular non farm plates on the truck and bump my insurance to haul for hire. Back hauling is a good idea but I would much rather haul with my hopper than my dump so it doesn't bother me to come back empty as I won't put rock or fertilizer in the hopper. I may be able to try and find someone to get on with to back haul some feed from local breweries to some of the larger feed mills around here though. I am located on the IL side of St. Louis so could haul distilleries back from one place to local feed places. But I have done the math and can make money coming back empty. My truck and trailer full of fuel with me in it are right at 25,300 empty so I can fit more bushels than most to gain a little extra on each trip

 

Dont be afraid of small rock or fert. In your hopper I do it all the time

 

IMO The worst mistake you will make is cutting a per bushel rate just a bit because you can put more on. Or saying to make it work i need 2 a day or 3 etc. If there isnt any real money in one where is it in the 2nd or 3rd. Most want a per day average number, which should work. It seems things got a lot better for me at less gross per day but keeping a better margin. I do agree don't overlook fertilizer or small rock. Go to home depot buy a long ext broom sweep out often as it's easier to get the packed stuff before it packs.

 

With hopper rates so low lately you need to own your equipment. No payments. Also figure in deadhead miles to your costs. Ive been averaging 24 percent deadhead running anywhere i can make a buck. Get ropes to get in and out of trailer with. Get vibrators. In second thought put a noose on one of the rope. Some days you will be tempted.

 

First, very nice looking truck in your sig.
I won't be cutting down on rates because I can haul more for sure. To me thats just more profit because of a lighter truck. One thing I got going is I'm not trying to make a living doing this I just want the truck to pay for its self since right now they just sit in the shed most of the year and it could be working and make a little extra each year would be nice. I know a few of the guys that haul around here and most are good people and refuse to run lower rates than them just because I can or I don't need as much money. That just screws everyone. Reason I don't want fertilizer in the hopper is because my current on has had it and you can tell with more rust on the inside bolts and what not. We should be picking up some newer ones here soon and they are nice and I want them to stay that way. I do have a frameless dump if anyone ever wanted me to bring something back.

 

Also how exactly do you guys figure what your rate needs to be to take a load. I know the fuel costs maintain insurance all of that. But some places pay by mile some by Bu. How do you keep good track at a break between the two. After so many miles it doesn't matter how many Bu you have on anymore but also if its a short run you don't want to take just milage and cut yourself short. I think going rate around here right now is about $.17 or $.18 per bu. Right around 110-120 mile round trip depending on which terminal and elevator your are pulling from.

 

I have a $per day that i aim for. I convert everything to per mile as a way of comparison. I try not to do short runs. I try to tun 5 to 600 miles a day. That leaves time for loading and dumping. Next day start again.

 

17-18 is a little slim on 110 to 120 for me id be charging more like 23 to a farmer and pulling about 20 from an elevator. And if there are numerous loads to haul short haul is the best Il charge 10 cents for most short hauls. Like 20-30 mile round trip and make 7-8 loads a day hauling about 1100 bushel.

 

What I do is convert everything to per mile. Weather it's by bushel, ton, cent per 100 weight etc. Shorter the haul more per mile I put in it. Cost 200 just to hear the truck run if it's real short. Also with grain the elevator or broker will usually set the rate. If they let you set it be careful you may be way too cheap. Also don't be afraid to say I can't haul it for that. There are some good short hauls to smaller feed Mills that lack capacity to store product but for an unknown to get them is not impossible but improbable. You have to prove yourself and your equipment. Saying you can and them knowing you can are a different animal.

On rates first you need to know your fixed cost or what it cost you every day to have the truck sit in the yard and do nothing. Every day you run you need to track your expenses to come up with a good average variable cost. Then figure how much fat you wanna put in it.

 

I haven't really found a perfect formula I just base it on other trips I make and try to be fair. As long as the farmer is happy I'm happy because that means job security