what is your break even

Well.. one thing that leaps out is your fuel estimate. Check your formula. Expect something in the realm of $300-600 each day you are moving. I've seen a few weeks where my planning was on point and burned through $2,000 in a week on one truck. My model says $5,500/mo per truck and actuals have been close.

Also: Expect to spend at least $5-10k in the first couple of months on repairs. You might think that truck is tip-top with a fresh overhaul, but it's still gonna have 10 year old everything else along with all the deferred maintenance and repair from the last owner. Radiator, fan hub, a/c, you name it. Some things will break when you resume pounding out 10,000 miles a month with that rig. If you think I'm exaggerating, I've lived that twice and have the vehicle files to back it up. Even with 10 years experience as a mechanic and a proven knack for buying solid used vehicles, these big trucks will eat you alive with the "soft" stuff even if the major assemblies are solid.

Good luck with that $2.50/mi avg with your shiny new authority and undefined safety score and reputation. FYI - fuel surcharge is only relevant with contract customers to normalize the rate with changes in fuel cost. If you're running contract business, good for you - fsc matters in that case. If you're planning to use brokers, the spot market price is all-in. The price is the price on that day. Playing games with fsc and accessorials to deflate your costs or inflate your revenue in a spreadsheet is only going to make you feel good and not yield much in terms of actual dollars to your real bank account.

Other than that, it looks great!

 

is it that hard to get loads with new authority ?

 

Getting loads is the easy part. Consitently averaging $2.50 a mile, please don't tell us you are going to pull a dry van? What are you planning to haul btw? Now some guys like Gears will tell you he never had anyone frown on him and not offer a load because his authority was too new. I would tend to think that experience is rare. Others will tell you they have run into brokers who would not ship on a carrier with less than 3 or maybe 6 months in the business. Bill ran into that before. I actually ran across a broker that would not ship a load on my truck because Bill's company had not been in operation for at least 1 year. That was back in November, I think, we were only 12 days shy of his company having a year's worth of operating authority. We sort of figured the real reason they backed out on the load was because someone called in with a cut throat rate so they looked for a stupid reason to back out. It happens. Also I think Redforeman can tell you about brokers who were leary of shipping on his truck because his authority was so new, and yet the professional manner in which he presented the case why they should, got them to waive the "new authority restriction" and put the load on his truck anyway, or maybe they needed a truck and they were willing to pay to move the load. Can't remember exact scenario there, but things are dynamic and just because someone says something is so doesn't make it so, everything is negotiable.

 

Bear Transportation requires

• Been in business for at least 1 year
• Cargo insurance of $100,000
• Auto liability insurance of $1,000,000
• General liability insurance of $1,000,000
• Satisfactory safety rating from the FMCSA
• Minimum of two trucks
• Central dispatch
• Give Bear direct contact to drivers via mobile phone, pager, or satellite system
• Sign our Broker/Carrier Contract
• Updated equipment preferably no older than 5 years

 

And yet Bear is one of the cheapest brokers around, or at least have been in my limited experience with them.

 

I like how it says preferably no older than 5 years. Are their rates so stellar they can make such a demand? I imagine that one gets ignored all the time.

 

None of my trucks are newer than five years old and most are older than 10. I have never had a broker ask about how old my trucks were, a few ask about trailers on certain loads due to actual customer policies, but not trucks. If a broker were to ask that question, Im sure I'd still be laughing when they finally hang up on me.

 

OP has reefer fuel in his model telling us what he's hauling. Rollin coal has it right - new authority/no safety score is a barrier that fades obviously with time. The first two loads I booked were brokers desperate to cover last minute loads that had to move. They made exception to their policies to move it. Sounding like a pro on the phone and telling a good story about the driver and equipment got the rate confirmation.

After a couple more you now have a reference sheet to send in with your carrier package. I've learned from my best customer that they do call on those, so choose wisely and keep it current. After six months, you'll get an occasional remark about your conditional safety status (pre-new-entrant audit) but they will usually load you anyway.

Bottom line is that evidence of good performance and safe operation give you much leverage when you ask for higher rates. Sometimes brokers don't care. On New Year's Eve I booked a nice one and the broker admitted he had 4 other carriers trying for it. He decided to book me because he had our record of over 30 on-time/no-claim loads in front of him and he didn't want to be putting out fires over the holiday.

 

what kind of truck do you have that gets 6 MPH?