O/O what is your pay per mile, try to be honest.lol

How does it hurt you if I haul for less? I guess that's not what I'm understanding. How does what I do effect you?

 

Let's say a certain lane pays an average of 2.50 per mile. I have been hauling it for a customer for this rate and things are moving smoothly. When you come in and haul it for 1.50, the shipper now thinks they are being raped by me, and want me to haul it for 1.50 also. The problem is, at 1.50, have you factored in that your truck WILL eventually die? Then what? You go back to this shipper and say "dang, man, I need 2.50 for the next 4 years, when my truck is paid off, I will do it again for 1.50" ??? Good luck!

This is also where the "know your markets" comes into play. If you are getting 1.50 and going to somewhere you regularly pick up your "good stuff" for the return - what stops someone else from swooping in and taking your high paying stuff for less, thinking they have pulled one over on you? And before the argument of shippers can't or don't want to pay $3, $4/mi and beyond - think about what that cost has on the effect of the price of the goods being moved. It is very little.

 

1.80 to 2.00 But I always try for 2.10 Just wish I could cut out the middle man broker! If anyone knows how this can be done. I'm a new owner operator so I haven't quite learned the best way to make money yet!

 

Freaking BRILLIANT post!

 

although I think I undertand what he was trying to get across it does & it doesnt. You know the dont poop where you eat deal.
Assuming you own a truck and run all you want at whatever rate you want , doesnt mean everyone else will run for the same rate. Sometimes its frustrating to hear the rates some guys accept but I think they can race to the poorhouse all they want for all I care.

 

My comment about being better off being a company driver was to the poster who was talking about running for $1.50 per mile. Even your runs at $1.71 per mile are $.21 more than what he is talking about. If you took that much off of your gross could you still do it? If your happy running 1300 more miles for the same gross as the other driver more power to you. Keep on trucking.
Financially It doesn't make since to me to run for $1.50 per mile when there is better out there. And I do believe that at $1.50 per mile you would be better off FINANCIALLY as a company driver. You may have to look a little harder to find better paying freight but it is there. As you know Driving is the easy part of being an o/o. Sometimes it is time better spent looking for that higher paying freight.
IMO you have done well with your truck paying cash for it and either not havering many problems with it or being able do repaires yourself keeping your overhead down. Seems most of the guys getting into this are starting in the hole running cheap and when a big repair hits them they are unable to pay for it.

 

I can see exactly where you are coming from. I do the same thing through the winter - like my example earlier of my 5100 mile round trip. When the summer time comes, I do shorter runs, overnight loads mostly, and yes, there is much more BS to deal with, but the money is much, much better. I eventually get sick and tired of it right around the time that freight is slowing for the season anyway. I like to change up my routes.

It is good that you found a system that works for you. The 3,000 you are making per week I can believe, with you stating your equipment is paid off. Have you factored in how much you WOULD be spending when the day comes that your current equipment can no longer make you money? Also a higher insurance rate?

The other point I wanted to make was that even after you deal with the extra BS for the freight that pays more per mile, you need to look at where you will be when the truck is at the end of it's life. Let's say the truck will live for 1 million miles and you gross 1.71 for each mile.
1,710,000 for 1 million miles.
How many miles does my truck go to earn the same 1,710,000?

Winter time average at 2.15, would be 795,348 miles.
Summer time average at 2.50, would be 684,000 miles.

Starting to make more sense now?