What should i ask for these loads

No offense, but why would he give up his contacts???

That would be like me telling you where the Wonka golden ticket is......

I don't know you, and not saying you would ever do this, but many would call his $4 miles contacts and cut the rate and say "I can do this for $3.50 a mile"

 

HAHA that's cold !!

 

I see 3to4 dollar a mile and more freight every day, not going short distance , 500 to 1500 mile trips.

BUBBAQUICK. Do you know how load boards and brokerage company's work?
Load boards = leftovers.

 

This has been a really good thread

You guys make me think I can get rich with my own truck

 

Rich no, make a good living, yes.

 

There are really two quite different ways to run your operation. First, you can run lots of miles and take every cheap load that comes up. Using this method you make very little per mile and only get results through high miles. Second, you can be more selective and get much better paying freight by running more deadhead and doing a little more waiting. Using this method you make much more per mile and get results with fewer miles. With any luck and some planning, you can do the majority of setting at the house or home terminal.

If you do it right you can net the same money while running less miles and working less. When you chase miles and haul cheap freight to keep the wheels turning, the only real winners are the oil companies, repair shops and truck dealers. If you are selective on your freight choices and run low miles your variable costs will be about 45% of gross. If you run lots of miles with cheap freight they will be about 60% of gross. In addition you will put as many miles on your equipment in two years as the other choice will in three years.

Using the first method you make your profit by spreading the fixed costs over more miles and lowering the cost per mile. While doing this, since your variable costs remain the same per mile, you spend much more on fuel, repairs and maintenance and they make up a much higher percentage of the gross. Using the second method you make your profit through higher rates per mile, which allows you to afford the slightly higher cost per mile of the fixed costs being spread over less miles. While operating this way your variable costs, which make up the majority of your costs, are a much lower percentage of the gross.

With drivers on your trucks it will be a little harder. Most drivers, like many owner operators, feel they have to keep the wheels turning no matter how cheap the freight is. IMHO a small fleet owner can make this work too. You would have to pay more per mile or better yet a percentage of the load. Once your drivers see that they can make the same money, they won't be so excited about deadheading or an occasional wait.

Obviously if an owner operator can make it work and pay himself above average wages, a small fleet owner can make it work and turn a small profit. I have done it both ways. For me the hardest part was having the guts to say no to cheap freight while worrying about the cost of deadheading or waiting. It seems like a bad choice at first but I was pleasantly surprised at the results. You have to be wise about your lane choices and get enough going into bad areas to just turn and burn. You also have to learn where you can get the nearest decent rate when going into a bad area.

To make this work, you must build relationships with brokers. The good loads never hit the load boards and brokers know who will and will not haul their cheap loads. Since they have more cheap freight they aren't going to offer a good paying load to someone that will haul cheap. Another way to look at this would be, the cheaper loads are harder to move and that is why they are on the boards. The better paying loads are in short supply and high demand so they don't have to advertise to move them.

 

BigJohn54, thanks for your good advice and explanation of what is going on.
I,m also a new owner operator and trying to learn the ropes in this hard business.
Your answer is one of the ones I was looking for and the one that made more sense out of all the comments on this thread.
Don't know if you agree but I believe it's the #### brokers who have made this business hard to survive for small owner operators. Plus the bad fuel prices of course.
thanks.

 

Everyone's operation is different, The question is Can you run the load, pay your driver,and pay for the fuel, and budget for tires,ins,regular,maint. What about a new windshield because your driver got shut down at a weigh station. These are just some examples, but no matter what anybody else says your rate( breakeven and still be able to put some in the bank) will always be different. Some will have to make over $450 a day just to break even,,,,,,,,,,,,,, others $275. It will always differ, as long as you are putting money aside and paying your drivers and bills, your rate, is yours. With that being said, i hope that you do take the time to also make the right choices when it come to dealing with brokers. MY ADVISE allways go as high as possible and know the lanes you are hauling they are all different and will pay such, A rate going to point A may sound good but, if you are pulling for 3.50 mi into a bad area, you may be forced to pull out for .90 a mile, that is broker rates. They bottom line is know your costs, and your freight lanes. And never go into a bad area without doing your homework on the inbound and outbound rates.

 

Has anyone made a map showing the good and bad lanes?
Then maybe showing the rates going in.