Why you can not compete with big carriers

I was at a gathering last night and met one of the hire up accounting guy from one of the decent size carriers from chicago area (over 500 trucks) . We started talking about over head and fixed expenses and he almost made me cry when he told me about fuel prices,truck prices and trailer prices they pay .got me thinking no wonder i cant win any contracts or customers when they guys can come in and underbid me by $1/mile and still make decent profit.so hered the price breakdown
1- Fuel -$1.25/gal yup i had to ask him 3 times because i thought he was being sarcastic or pulling my leg .
2-Truck and trailer prices- they trade 2 trucks with 300-500k miles for a new one . When they do buy new its never over $150k .
3- taxes - dont pay much deprication and new terminals,drop lots,charity take care of most. If they still come high everyone gets a performance bonus.
4 - driver pay- everyone knows that one
5 - insurance premiums - 200$ each truck trailer and cargo .
After all the math i did they are pocketing $.97/mile when running at $2.2/mile all miles. I did added all the overhead of electricity, dispatcher pay,property taxs etc etc.

 

Sorry but there’s no way their paying $1.25 a gallon for fuel……

Ask to see an invoice

 

small companies should not compete with large companies for the same freight. That's like comparing a security guard, even a really good one, with an army.

 

FSC should bring the actual price to that area. Like listening to the Crete ads that say fuel cost of .75/gal

 

No one is paying $1.25 a gallon for fuel, so that should tell you he is full of it.

 

You dont have to be an idiot to come up with this nonsense you just need to be one to believe it

 

so he’s saying like ,50 cents a mile fsc and deducting that total from the pump price of the fuel……

still not paying $1.25 at the pump or for the tanker load delivered to their terminal

 

That’s a nice story with a happy ending and I say happy ending because if I got stroked that much the guy would have a wet hand.

 

Don't think it was said 1.25 delivered. End result is paying that or less. FSC should bring the price to 1.10-1.15.(@6mpg) Discounts bring it lower.
But most think of it as something else. Make it sound like that is the actual price.

 

Call any of the bigger outfits and ask them how much their owner ops pay for fuel. Then come back here and let everyone know. I didnt believed him either but when i called a few megas and bigger carriers. The price was pretty close to that number