Question from new broker/agent

Another " I WON'T START MY TRUCK FOR LESS THAN $56.78 A MILE!!!" topic....... First liar never had a chance in this one...

 

Maybe I missed something here, but I thought this thread was not about making "$56.78" per mile, but rather the idea that drivers should be paid a fair wage for their services. I am in no way trying to gouge the industry or trying to make retirement with one load, but at the same time we can't just run to cover our expenses either right? I don't want to work for free..... I try to turn a profit with my business. Truth be told, my average pay per mile is exactly $2.35 for all miles driven. ( I run a 53' stepdeck) I expect to do better this next year because I just started running the truck this past Feb with no prior trucking experience. And no truck driving school (Got my CDL in Jan 2012) just jumped in got my own authority, insurance, joined a couple loadboards and got it done.

 

While I do agree with your statements about the need to make a profit on your investments, but why ignore what a broker/agent is offering? I have posted loads offering as much as $3.50 + per mile without any responses from drivers. Drivers/Owner Ops. have to realize that they are not the only fish in the pond, sooner or later the well will start drying up and shippers will start fishing in other holes for live fish to bite. I keep talking to drivers that feel they can wait for better loads to come up and from the locations that they have refused loads I see those drivers still waiting for that great pie in the sky to come up. Well those drivers can keep waiting as I for one will not beg someone to take one my loads. I recently had a driver that recalled after 5 days of waiting asking if I had any loads available, you can guess what my response was.


When I was driving I accepted almost every load offered and still made plenty of money and several times I stopped again at the same truck stop and found these same drivers sitting waiting for a load after I made my delivery and been redispatched on another load. Learn to work with these brokers/agents and you will remain busy and make more money in the long run..

 

Do you work for free?

I don't drive a truck for the pure enjoyment of driving a truck...and running a truck costs money. You have fuel. Tires. Brakes. Wear & tear on the engine, transmission, drive shaft, rear ends, suspension, etc. every time you run that truck down the road. If a load is only going to pay enough to cover those costs, I'd rather sit here at home...either way, I'm left with just as much money in my pocket. I need to make enough to cover all of those expenses AND pay myself a decent wage before I'll even consider firing up the truck. Just blindly accepting every piece of cheap freight you are offered is a great way to wear out your equipment and go broke. Sure, you've got cash flow...but when parts start wearing out and breaking, you won't have the money to fix your truck.

And the rate per mile isn't the only factor in whether or not a load is worth hauling. Where is the load going? If it is going into an area without much freight coming back out, the rate will have to be high enough to cover the empty miles back out to where the next decent load can be found. Is the customer on either end particularly difficult? Drivers remember long wait times, rude dock workers, or unskilled forklift operators who tear up trailers, and that also needs to be factored into the rate before it becomes worthwhile trying to run. If you have a large number of loads posted for $1.50 and only a couple in the $3.50+ neighborhood, a prudent driver is going to question WHY you are offering so much more for those few loads when MOST of your loads are considerably less....wondering what is wrong with this load that you are willing to pay so much more for it compared to the others. As others have suggested, you get a reputation for offering cheap freight and it is hard to shake. Also, as others have mentioned, a new broker is an unknown...just as some brokers don't like dealing with new carriers, there are carriers who don't like dealing with new brokers. You haven't been around long enough to have a reputation for prompt payment...and people want to be sure they will be paid for what they do. Fly-by-night brokers have bit more than one O/O in the past.

There really isn't an end to the list of possible causes behind your troubles moving loads....

 

I fully understand what you are saying and am supportive to the cause, like I said before, I am a former driver and business owner who fully understands the cost associated with operateing a business. I would not like to be in your shoes today. I was just looking to get a handle on what the problems might be and am thankful for your input.

I am not a standalone broker, I am associated with a large trucking firm and operate under thier authority, we soliciate business from companies and brokers and repost loads on our companies site as well on interstate truck stop and attempt to work with drivers to keep them loaded and moving.

 

Who exactly are you associated with?

 

I am leased to a large all O/O company and am always busy but wont haul cheap loads. I have usually found that the cheaper the haul the more BS I have to deal with. So how exactly do i profit from a broker that dont pay enough just for the sake of keeping busy? Thats a poor business plan as I would rather drive less miles for more money instead of more miles for less money. Only a company driver working on CPM or % would ever just want to keep the wheels turning. Geography plays into a load as well.

 

That's balls, man. Good for you. Looks like things are going well in the beginning. The beginning part is rough, but once you got it down you got it made. Kudos to you.

 

I have one broker that consistently calls me with low paying freight. About 20% below what everyone else offers for the same load. When I tell them what I get from my other customers, he offers a multi drop load going to the same destination, still for less than what my others pay for a 1 pick 1 drop. No need to work with them anymore. I have found a handful of brokers, and they all understand, I am NOT looking for that gouge you rate. However I will NOT hold my truck for any one of them in particular. I go from A to B, whoever has a load ready on the day I need to move is who gets to buy my truck. I then go empty to C to find a load returning to A. Same deal. Now in the case where one guy panics and wants me to wait a day to load for him, I tell him it will be an additional x amount. If he doesn't like it he can try his luck tomorrow. This is working for me and I intend to continue doing it. I go to areas of the country I like, and up until Christmas time when perhaps something more lucrative will be happening from TX or FL, I'll keep on the steady path. However, as winter takes it's hold, less and less drivers are willing to run the PNW ... 8)

 

If no one is hauling your freight at your rates, and your company has good credit, the rates are too low. What you think is a good rate is completely irrelevant, especially at this point in your career. It could be as simple as you're competing for trucks with a seasonal commodity like Christmas trees, nursery stock, or watermelons paying more. Or it could be that you're just under what the going rate is for the geographical areas. Don't take it personal, it's just business. Learn to be a better businessman, or fail. You're choice.