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WHAT HAPPENS WHEN YOU SAY NO TO CHEAP FREIGHT

May 27, 2011 at 02:31 PM CST
+ 2
When enough people say no to cheap freight...The price will come up....We had this happen ..It started off at 4,000 and they couldn't get it moved so no the rate is 6,000. On a 1,500 mile load..This will pay loop miles of 2 bucks a mile....Now do you understand why you don't haul cheap? And this isn't bitching or snivelling...This is proof why you just have to say no....
Replied on Sat, May 28, 2011 at 12:22 PM CST
+ 2

Hey Jeff, your absolutely correct! Good Job! Now if we can get other folks to understand your message we might actually get somewhere with these rates. However, I have noticed a reduction in fuel price. Yes, fuel is showing signs of coming down. Now some of these drivers will think they can make money! It is imparitive for everyone to understand that just because fuel is dropping somewhat, you can fall into what is called the "psychological effect". Be warned not to do this. Fuel was $1.30 per gallon cheaper last fall. Fuel has only dropped .10 to .20 cents per gallon at the moment. We still have quite a ways to go before reaching last years fuel price per gallon. As stated by many of you on this site to others, DUE the NUMBERS! Also for those of you who are not aware of this, when fuel goes up, tires go up as well. When fuel goes down, tires stay the same price. Hmmmm? Notice the cut in your profit margin?

Replied on Sat, May 28, 2011 at 05:22 PM CST

All that I want to do is make people think before they act...It is past bad times...and most of us will jump at anything to keep from losing our business....Please just think..I know that a couple of dollars flashed before our face will make you jump when you are going broke...Yes the price of fuel has dropped...But we need to keep the rates up ...For those that own your truck...You will sooner or latter need to replace it or fix it..Wouldn't it be nice to pay cash instead of putting it on your credit card?? Just about every cheap load that I have hauled there will be a freight claim or something to follow...And every good paying load that I have paid everything goes smooth and the customer treats you well....Now what load do you want? Cheap treated like crap...Good paying treated well? Please think about what your actions of hauling cheap loads do...No I'm not a super trucker or bitching or sniveliing...Just trying to keep you in a positive cash flow...
Replied on Wed, Jun 15, 2011 at 07:21 PM CST
I see a lot of why people take cheap freight is that they do not understand what their actual expenses are and what they are looking to earn. Or, they get stuck in “wheels have to turn in order to earn” mentality and forget that your net is more important than total miles. These are the guys that don’t call on 400-500 mile loads because it’s not enough miles. While I have taken some of these loads for 10% less than what is being offered on 1,200 mile loads.
Something else that O/O’s get stuck with is working with a broker first because they will advance money on fuel “cheaper” than using a factoring company (and I am not a fan of factoring). So they take loads cheaper than other loads because they will get an advance.
Too many people buy a job rather than starting a business. This is a business when done right you can earn in excess of $100k per year and not kill yourself.
Replied on Wed, Jun 29, 2011 at 11:00 PM CST
Originally Posted by: WILLIAM HOOD
Quote: "I see a lot of why people take cheap freight is that they do not understand what their actual expenses are and what they are looking to earn. Or, they get stuck in “wheels have to turn in order to earn” mentality and forget that your net is more important than total miles. These are the guys that don’t call on 400-500 mile loads because it’s not enough miles. While I have taken some of these loads for 10% less than what is being offered on 1,200 mile loads. Something else that O/O’s get stuck with is working with a broker first because they will advance money on fuel “cheaper” than using a factoring company (and I am not a fan of factoring). So they take loads cheaper than other loads because they will get an advance. Too many people buy a job rather than starting a business. This is a business when done right you can earn in excess of $100k per year and not kill yourself."

Well stated William!!! However, let's take a closer look! There are drivers out there that are reading the information posted by others, in this forum, that are currently hauling cheap freight and don't know it. Really! They have no clue. For those of you who are not sure, take a look at your (Cost of Goods). Example: If you run during the week and are home on the weekends, then add up what you made that week. Let's just say you did $3,000.00 for the week. Now, add up all of your fuel reciepts, meals/groceries, hotel (if any), and any thing else that you must have in order to operate for that week. (Don't worry about adding in your truck payment or insurance, or things of that sort. That will come later. I'm talking about the must have. Kinda like owning a fast food joint. You must purchase the food first from a wholesale vendor in order to cook it and sell it to a customer. The fuel you purchase is like the food being purchased for a fast food joint. Now when you have added up your fuel tickets, meals/groceries, hotel for that week, take that number and divide it into your gross figure. In this case, its $3,000. You NEED to be at 42% or less in order to make money! This is the rule of thumb in business. If you want to make more money, then figure out a way to lower your (cost of goods). The higher the percentage, the more your cutting into your profit. Drivers who are running at 53% will be going out of business in the near future. This is a fact! The biggest culprit effecting your % is mpg that your truck is getting. If you really want to see where your going to be in the near and far future of your business, go to Hotshot Carrier.com and click on the profit calculator. It's very simple, replace the red numbers with your own. You may have to stop and look up some of the numbers you need, like repairs, supplies, etc... Change some of the columns down below to suit your business and plug in your numbers. It will show you exactly where you'll be. You may not like what you see!
Replied on Thu, Jun 30, 2011 at 08:09 PM CST
Originally Posted by: THOMAS FLOCK
Quote: "Well stated William!!! However, let's take a closer look! There are drivers out there that are reading the information posted by others, in this forum, that are currently hauling cheap freight and don't know it. Really! They have no clue. For those of you who are not sure, take a look at your (Cost of Goods). Example: If you run during the week and are home on the weekends, then add up what you made that week. Let's just say you did $3,000.00 for the week. Now, add up all of your fuel reciepts, meals/groceries, hotel (if any), and any thing else that you must have in order to operate for that week. (Don't worry about adding in your truck payment or insurance, or things of that sort. That will come later. I'm talking about the must have. Kinda like owning a fast food joint. You must purchase the food first from a wholesale vendor in order to cook it and sell it to a customer. The fuel you purchase is like the food being purchased for a fast food joint. Now when you have added up your fuel tickets, meals/groceries, hotel for that week, take that number and divide it into your gross figure. In this case, its $3,000. You NEED to be at 42% or less in order to make money! This is the rule of thumb in business. If you want to make more money, then figure out a way to lower your (cost of goods). The higher the percentage, the more your cutting into your profit. Drivers who are running at 53% will be going out of business in the near future. This is a fact! The biggest culprit effecting your % is mpg that your truck is getting. If you really want to see where your going to be in the near and far future of your business, go to Hotshot Carrier.com and click on the profit calculator. It's very simple, replace the red numbers with your own. You may have to stop and look up some of the numbers you need, like repairs, supplies, etc... Change some of the columns down below to suit your business and plug in your numbers. It will show you exactly where you'll be. You may not like what you see!"

Thomas, im glad you posted that , cause i was getting ready to. Alot of people dont figure this way in the trucking business, but let me tell ya people this is the way to know where your at. All businesses use this model to know where there at. Remember when you figure cost of goods do not use your insurance costs or maint. or truck payments. That is figured in later. Getting ready to haul a super good paying load for tommorow, you wouldnt believe the rate if i told you. Good luck and happy INDEPENDENCE DAY TO ALL.
Replied on Fri, Jul 01, 2011 at 05:11 PM CST
Originally Posted by: WILLIAM HOOD
Quote: "I see a lot of why people take cheap freight is that they do not understand what their actual expenses are and what they are looking to earn. Or, they get stuck in “wheels have to turn in order to earn” mentality and forget that your net is more important than total miles. These are the guys that don’t call on 400-500 mile loads because it’s not enough miles. While I have taken some of these loads for 10% less than what is being offered on 1,200 mile loads. Something else that O/O’s get stuck with is working with a broker first because they will advance money on fuel “cheaper” than using a factoring company (and I am not a fan of factoring). So they take loads cheaper than other loads because they will get an advance. Too many people buy a job rather than starting a business. This is a business when done right you can earn in excess of $100k per year and not kill yourself."

I've noticed tho that a 1000 mi run will often not pay as good per mi as a 350 or 400 mi run which is why i hesitate to take a long haul. Why is that? The cost per mi is still the same but these brokers don't seem to be able to figure that out.
Replied on Sat, Jul 02, 2011 at 10:25 AM CST
+ 1
Originally Posted by: MARK MAST
Quote: "I've noticed tho that a 1000 mi run will often not pay as good per mi as a 350 or 400 mi run which is why i hesitate to take a long haul. Why is that? The cost per mi is still the same but these brokers don't seem to be able to figure that out."

That's the way it should work but normally it doesn't. A short load takes more time loading,generally waiting and unloading, so much time is wasted that you have fixed bills to pay and you need so much per day to satisfy those requirments. I see many short loads for 1.50-2 per mile and long hauls @ 2+ because the renegades want to be home every nite and weekend so they do it cheap. Happy 4th of July to all.
Replied on Sun, Jun 26, 2016 at 07:17 PM CST
+ 1
Originally Posted by: WILLIAM HOOD
Quote: "I see a lot of why people take cheap freight is that they do not understand what their actual expenses are and what they are looking to earn. Or, they get stuck in “wheels have to turn in order to earn” mentality and forget that your net is more important than total miles. These are the guys that don’t call on 400-500 mile loads because it’s not enough miles. While I have taken some of these loads for 10% less than what is being offered on 1,200 mile loads. Something else that O/O’s get stuck with is working with a broker first because they will advance money on fuel “cheaper” than using a factoring company (and I am not a fan of factoring). So they take loads cheaper than other loads because they will get an advance. Too many people buy a job rather than starting a business. This is a business when done right you can earn in excess of $100k per year and not kill yourself."

Well I agree to William Hood, sometimes or most of the time when you avail a cheap freight service its only at first then the succeeding will reveal the actual expense and you will see that its more expensive than taking a cheap freight services. Cheap freight service sometimes are low quality if you know what i mean lol, they promise good services but in the end its not or they are breaking their promises because its just a promise.


BR International Logistics Freight Forwarder Melbourne
Replied on Mon, Jun 27, 2016 at 03:16 PM CST
Originally Posted by: MIKE WILSON
Quote: "Thomas, im glad you posted that , cause i was getting ready to. Alot of people dont figure this way in the trucking business, but let me tell ya people this is the way to know where your at. All businesses use this model to know where there at. Remember when you figure cost of goods do not use your insurance costs or maint. or truck payments. That is figured in later. Getting ready to haul a super good paying load for tommorow, you wouldnt believe the rate if i told you. Good luck and happy INDEPENDENCE DAY TO ALL."

Mike when you take the time to lay out a spreadsheet and figure out what it would cost the shipper to do it for themselves. You will find that the shorter the miles cost the truck more per mile to do. It is really hard to explain the formula that I have come up with for this, but I have government reports that validate this and show this as well. My question is why the government reports show one thing but I keep hearing from the truckers and brokers another. Either the government reports are screwed up or those that are reporting those numbers are lying to one side or the other. I suspect that those that fail to take the time and run their own numbers and find the answers are the ones that are being constantly taken advantage of. We all take a load from time to time that sucks, myself included, but it only takes once to realize that I should not work for that shipper/broker again for those rates. When the shipper/broker calls again for that gig, I have my new numbers ready and will not do it for anything less.

While it is true that the more miles you run cause your cost per mile to decrease, if you are running at such a slim margin then you will find that all the miles that you are running will never make up the difference.

Whoever told others that $1.35 per mile will keep them in business was lying.
Whoever told others that $2.00 per mile will keep them in business was lying as well.

3000 miles per week @ $1.35 is $4050.00 gross, if it cost you around $1.70 per mile to inculde paying yourself, then how does this work? (The $1.70 per mile is not my number but the ATA's)

2.00 per mile for 10 miles that takes all day, Hmmmm, I don't need to say anything more there.
Replied on Mon, Jun 27, 2016 at 11:28 PM CST
+ 1
Well I'll be damned. Mr. Shut, my personal hero on this forum. I hope you are well. There are some on here that I have respect for but Dale Shut, people wake up this man has a ton of knowledge and knows how to eloquently express his knowledge. Wish you were still in the mix, but am jealous that you were able to walk away. Wish I could. Stay well my friend. You should be given a free lifetime membership to this site.

Art Pfluger