Rate per mile questions

Discussion in 'Expediter and Hot Shot Trucking Forum' started by AndrewW, Jun 11, 2020.

  1. crocky

    crocky Road Train Member

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    Also, rate per mile should really just apply to your expenses. Once you have a basic idea what it cost to run your truck per mile you can then figure out your minimal need for profit. Don't forget to pay yourself though. For example, most big trucking companies are paying .50-.60/mile. So you want to be able to say you're paying yourself at least that much.

    Just keep in mind it's harder to figure cost per mile for the truck and trailer payment unless you figure out how many miles you will keep them for and how many payments that will be then add in depreciation to that and somehow figure out how much you will sell it for. hard to sort that out for a small operation.

    Now with that out of the way, I'll say I look at a rate per mile but I don't always worry about that rather I look at how much I'm making per day. What I mean is obviously I want my minimal expenses paid but I also look at what I'm making overall for the trip.

    Like right now I'm doing mostly cars because freight rates have been bad and have a flat deck that can hold 2 cars. I usually leave home from FL and do a short run into SC or NC or AL,MS,LA.

    All of those are easy 1.5 day runs for me. Some less some shorter. So if looking rate per mile it's often better paying to go CFL to Charleston, SC or maybe into GA but going to either of those 2 places I'm lucky to see $400 per car but it still takes me 2 to 3 hours to get both cars then drive 5-6hrs. Meaning I'm picking up one day still dropping the next.

    Yet if I take 2 cars up into NC I usually get $500-600. I still spend the same 2-3 hrs picking up but I just drive a bit further and drop off the next day yet I make $200-400 per load more. So while the rate per mile might not be as much as going the shorter distance I made more per day.

    Each of thee trips I assume it's going to be a 1.5 day run because in most cases I don't drop at the same location. Meaning even if I get to the 1st drop that night I will still have to drive somewhere to deliver the 2nd car. I just try to leave my self enough time to try and get reloaded that same day allowing me to start running my next run.
     
    Last edited: Jun 14, 2020
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  3. Lite bug

    Lite bug Heavy Load Member

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    .
     
  4. Lite bug

    Lite bug Heavy Load Member

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    44,000 per year, I like it.
     
  5. rccarlson22

    rccarlson22 Light Load Member

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    I started in January and I’ve clocked 32k so far. About halfway through the year plus im gonna slow down for the December holidays. I would guess 60k for me first year out.
     
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  6. AndrewW

    AndrewW Bobtail Member

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    Great info guys. I appreciate it. Now, I’m waiting on a few more insurance quotes. The lowest so far was $31k a year from NICO.
     
  7. rccarlson22

    rccarlson22 Light Load Member

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    That’s insane. I wouldn’t have got into this if I got quoted that. Just too much
     
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  8. Lite bug

    Lite bug Heavy Load Member

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    I have heard people say they were given a quote of $30,000 a year. I would be looking for something less than 15,000, or, even better, 12,000, depending on age and speeding tickets. Also depending on you driving history, radius, freight, and your home base. All of these factors affect your premiums. Most people get an unlimited radius, thinking they will go everywhere. And then, in reality, they don’t. Or, carrying full coverage on an older truck, or getting a policy with low deductibles. 31,000 is hard to overcome.
     
  9. AndrewW

    AndrewW Bobtail Member

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    I will admit, I wasn’t sure on some of the questions the agent was asking. I did tell them it was regional, $1m liability and $250k cargo with a deductible of $2,500. She had other questions that I just flat out didn’t have the answers too. I told her I’d be hauling general freight but she didn’t like that answer. Wanted to be more specific. They wanted a DOT # bad but I told them I was just looking for quotes to see if this is something I can budget for.
     
  10. AndrewW

    AndrewW Bobtail Member

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    Also, I’m based out of Southern California, 34 years old and the last ticket I had was in 2005. I’d say my record is clean in that aspects. As far as experience, well I have none. That may be a factor for the high quote also. Oh well, keep on pushing. Waiting for more quotes.
     
  11. Lite bug

    Lite bug Heavy Load Member

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    Our son was in San Diego for part of his career. It was a neat place to visit. A guy in Phelan Ca. could steer you to a insurance agency that insures new entrants. I can not send a private message to you as a new member. ( not sure how long the guidelines are ) You can get a better idea what new guys can get a rate at by talking to him.
     
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