saying NO to cheap freight

Discussion in 'Ask An Owner Operator' started by BAYOU, Jan 5, 2011.

  1. rank

    rank Road Train Member

    9,918
    113,504
    Feb 11, 2010
    50 miles north of Rochester, NY
    0
    My experience is in line with the folks that say its' hard to get more once you go low. I've done it in emergencies where they had a truck fall off a load and I tell them I have to dead head to the PU, but other than that, no way.

    That is why you are better off to not lower your price. They will expect it all the time. If you must haul a cheap load, do it for TQL or Landstar or some other clown brokerage that you will never use again.
     
    mitmaks Thanks this.
  2. Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.

  3. Ruthless

    Ruthless Road Train Member

    8,947
    88,094
    Aug 28, 2010
    The City.
    0
    image.jpg "Get your foot in the door" with this one. She has loads nationwide and I have yet to see a single one that pays worth taking.

    folks with cheap freight have cheap ambitions and don't charge enough to be able to offer a carrier a good rate.

    "that's a bad lane!" Say the cheap freight haulers. BS! 20 miles from there I get $100 more on under 200 miles & that's my "getting out of a bad lane" haul!

    Rising water raises all boats; cept those that are sinking. If the freight is cheap let it sit.
     
    wore out and 281ric Thank this.
  4. MACK E-6

    MACK E-6 Moderator Staff Member

    48,929
    226,848
    Sep 19, 2005
    Baltimore, MD
    0
    $840 to go 894 miles?

    Even I know that's pathetic.
     
    Ruthless Thanks this.
  5. rollin coal

    rollin coal Road Train Member

    13,281
    26,789
    Mar 29, 2008
    TN
    0
    I would disagree with you and say guys with paid for equipment have a higher cost than the average. You still have a trailer payment and tractor payment when your current equipment is paid for, it's called replacement costs. For me with the tractor anyways that is replacing worn out parts as needed, not the whole tractor. The trailer has to be replaced with brand new every 8 to 9 years. That's just me.

    Here is another thing about knowing your cost to roll. That's just the cost. If you average that you're going to bleed out of business. Take your cost and divide by .85 or .80 (if you want 15% or 20% profit margin) will tell you exactly what you need to strive for to hit that goal. For me with fuel where it's at now I need a little over 50,000 total miles a year at a little over $2.30 a mile to bank a nice profit annually. Cost to roll $1.85 a mile. Any more miles than 50,000 at that average is bonus money. That is my operation and I can live comfortable at those numbers. Yours may be different. My point was many guys tend to think in terms of "cost to roll" as being some starting point for rates to accept. If it cost $1.85 or even $1.68 to roll then $2 per loaded mile is good right? Wrong. Don't forget about making a profit above and beyond that cost and do not forget to charge so you cover your deadhead.

    I also think if more operators would let go of the "I need $700 per day" or "I need $1,000 per day" and instead just focus on an annual goal they would find it much easier to achieve. That "I need this amount daily" thinking will have you working cheap. I have days where I do $2,000 in revenue and days where i do ZERO in revenue but I still always manage to meet my annual goals. I consider a month where i did $20,000 in revenue to have bought and paid for a month when rates are so poor it's not worth working. That $2,000 day bought and covered some ZERO days. It averages out over time. Don't work just for the sake of working. Work when the money justifies it. Just let it come to you. Don't force things.
     
    HopeOverMope, Ukumfe, mrbmg and 4 others Thank this.
  6. BAYOU

    BAYOU Road Train Member

    2,847
    1,592
    Sep 23, 2010
    Beaumont,Tx
    0
    I'm looking for a new goal for next year, haven't come up with one yet I've only worked 8 months this year and as of the first of this month hit $200,k with two months left......thinking real hard about buying a refer
     
  7. Ruthless

    Ruthless Road Train Member

    8,947
    88,094
    Aug 28, 2010
    The City.
    0

    To to keep the cash cold and hard? Or for a cool hangout when you're done running? Lol
     
    MJ1657 and 281ric Thank this.
  8. russtrucker

    russtrucker Road Train Member

    1,767
    337
    Mar 27, 2012
    Central PA
    0
    Same crap happening right now. They only want mega carriers to exist.
     
    bzinger Thanks this.
  9. double yellow

    double yellow Road Train Member

    5,946
    10,066
    Aug 28, 2011
    State of Jefferson
    0
    There's money if you can avoid being double & triple brokered...

    JB reluctantly booked a load with me this morning for $3600. 10 minutes later, they cancel. 30 minutes later a small regional carrier/broker posts it for $2500. 2 hours later LS has it for $2100...
     
    Orangees, bzinger and HopeOverMope Thank this.
  10. rank

    rank Road Train Member

    9,918
    113,504
    Feb 11, 2010
    50 miles north of Rochester, NY
    0
  11. Boardhauler

    Boardhauler Road Train Member

    1,715
    3,501
    Dec 21, 2008
    Ballin' in it for Shakey
    0
    No, just a free market at work
     
  • Truckers Report Jobs

    Trucking Jobs in 30 seconds

    Every month 400 people find a job with the help of TruckersReport.