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$1.00 per mile or $2.00 oer mile?

Feb 04, 2017 at 09:38 AM CST
- 1
Trucking company A has a run for 1000 miles that pays $1000.00. They are making 20% profit on the load.

Trucking company B has a run for 1000 miles that pays $2000.00. They are making 5% profit on the load.

Which trucking company is doing better?

Company A at $1.00 per mile?

Company B at $2.00 per mile?
Replied on Sat, Feb 04, 2017 at 09:58 AM CST
+ 1
Company A, when they start charging $2/pm.
Replied on Sat, Feb 04, 2017 at 10:08 AM CST
+ 2
ALFRED,
Please tell me the truck, trailer, driver set-up that can run 1000 miles for $1,000.00 and net $200.00
I want one just like it!
Replied on Sat, Feb 04, 2017 at 11:26 AM CST
Originally Posted by: DAVID WARREN
Quote: "ALFRED, Please tell me the truck, trailer, driver set-up that can run 1000 miles for $1,000.00 and net $200.00 I want one just like it!"

Me too.
Replied on Sun, Feb 05, 2017 at 08:32 AM CST
Alfred you are a genius. Have you figured out a way to operate for less than $1.00 per mile?
If so share your secret with all of us. I would even be willing to pay you for instruction.
Replied on Sun, Feb 05, 2017 at 10:12 PM CST
Originally Posted by: DAVID LEHMAN
Quote: "Alfred you are a genius. Have you figured out a way to operate for less than $1.00 per mile? If so share your secret with all of us. I would even be willing to pay you for instruction. "

Geez, I guess they missed the point, 5% is not good, 30% is were you should be.
Replied on Mon, Feb 06, 2017 at 09:49 AM CST
Company a $200 dollars
Company b $100 dollars

Replied on Mon, Feb 06, 2017 at 09:50 AM CST
Company a $200 dollars
Company b $100 dollars

Replied on Thu, Feb 09, 2017 at 03:52 AM CST
Originally Posted by: DAVID LEHMAN
Quote: "Alfred you are a genius. Have you figured out a way to operate for less than $1.00 per mile? If so share your secret with all of us. I would even be willing to pay you for instruction. "

Forgot to tell you. Run your rig as a team like my dad and I did for a while. Put 300,000 or more on it in a year and you will find the magic $1.00 per mile or less. Now we made way more than that but for all of those that say bull shit just run the numbers for yourselves. By the way we were running at a 60% margin or greater most times.
Replied on Thu, Feb 09, 2017 at 08:44 AM CST
I had one local shipper (that knows me personally) tell me he I should charge him way less because he knows I don't have debt service, either personal or business, and other income streams compared to the local company he was currently using. Yeah, right- if I want to end up in a shallow grave. No thanks, I'll pass.

How about this:
A carrier should always look for single drivers that have low living expenses as they have a higher 'profit margin' & need less pay. Kind of leaves the married drivers with familys and a house & car payment at a competitive disadvantage?

You can probably tell, I'm not a big fan of operating a business off of margin.
Replied on Thu, Feb 09, 2017 at 09:05 AM CST
+ 1
Originally Posted by: XXXXX XXXXX
Quote: "I had one local shipper (that knows me personally) tell me he I should charge him way less because he knows I don't have debt service, either personal or business, and other income streams compared to the local company he was currently using. Yeah, right- if I want to end up in a shallow grave. No thanks, I'll pass.How about this:A carrier should always look for single drivers that have low living expenses as they have a higher 'profit margin' & need less pay. Kind of leaves the married drivers with familys and a house & car payment at a competitive disadvantage?You can probably tell, I'm not a big fan of operating a business off of margin."

Whether you have debt or not is not the issue. If an individual is running on cash basis and does not bill for replacement value of their equipment they might as well just give the equipment to the shipper or broker right now and be done with it.

There is only a penny to a quarter difference between the old and the new when the line items are set up properly.

Profit will almost always prevail over a guesstimated rate per mile. In effect if you are operating on cash basis your margins should be greater than those that are on a margin (debt) based business.