A. Blair

Moot · Sep 29, 2009

Tom Robertson said:
You guys just go ahead with your plans to move third world countries to other locations on the planet.

Do they eat liver in third world countries?

Turtle · Sep 29, 2009

Tom Robertson;330127 Turtle… said:
Why are you taking this so personally?

I'm not. I'm simply replying to what was posted, rather than to who posted it, same as I usually do.

Perhaps you paid less than I did for the same truck…

Of that I can almost guarantee. I stumbled upon a particularly good find when I got my Sprinter, had a snotload of a down payment for it, and had it paid off within 16 months.

...but from my experience I know that most are paying a lot more.

Without question that is true. Still, the majority of people will pay more than they should, or rather more than a scant few will, therefore, it is at the very least disingenuous to assume that 65 cents a mile should be profitable, and if someone isn't profitable at that rate it's their own fault. This industry is comprised of a majority of people who all do the same things and make the same mistakes, not the select experienced few.

When I first started I made more than my share of classic mistakes, except that I made them in a van that I paid $5000 cash for, specifically to use for the learning experience, specifically to make those mistakes with. After driving that one for a long while, I used that experience (and banked cash) with a new Sprinter. And I've outfitted it the way I want, quite comfortably, no doubt in a manner that would make you cringe, since I absolutely could not have done it this way, much less have had it paid off so soon, on 65 cents a mile.

You state that anyone should be profitable in a Sprinter at 65 cents, by not paying the dealer too much or by doing things like not having a sleeper in order to maximize the load capacity. I maintain that being able to carry an extra skid but not having the ability to sleep while loaded is counter productive, if not destructive. I learned that with my first van where I had no place to sleep while loaded on a Friday pickup for Monday delivery. Three straight days of no sleep is not being profitable, it's nuts, and so are motel bills. My van is very well insulated, I have a sleeper, an Espar heater, a Microfridge with a freezer and microwave oven, a printer/scanner in the van, storage space under the bunk as well as shelving along both cargo walls of the van. I'm comfortable and well rested most of the time, and consequently I stay out here for many months at a time. Trust me when I tell you that I do OK.

But I'm not the typical majority, either. If I were to suddenly start driving for 65 cents a mile, I could certainly be profitable, but not nearly as profitable as I am now. And that's apparently saying a lot, 'cause I'm leased on to Panther. But it's because I drive for myself, and not Panther, that I'm doing OK. Making a profit at 65 cents a mile and being truly profitable are two different things. This is not McDonald's where you can make a penny profit on volume, yet that seems to be the way you look at it, or at least the way you want others to look at it. More miles at a lower rate, make less per mile but make it up in volume, volume, volume! Talk about missing the big picture. Cost per mile is cost per mile, each and every mile. Stating that longer loads means better fuel economy than shorter loads is a misnomer, unless you are comparing expediting to a city delivery truck, since there are generally the same number of "city" miles in a 600 miles run as there is in a 200 mile run. I run less than 5% city miles, too. And while longer runs do reduce certain costs, they are minimal when comparing 200 and 600 mile runs. I think the average run for the industry is a little over 300 miles currently. The difference between the industry average run and nothing but long runs will mean very little in fuel economy and other costs.

A couple of other things...

"Many of you think you are making more than you really make."

Probably true, but I'm not one of them.

"It amazes me that some of you claim to make rates that are equal to or greater than 2005, while others from your company have been offered rates as low as 40 cents per mile."

I dunno. I make 77 cents a mile and my YTD FSC is 13 cents. That's 90 cents a mile. Over my entire tenure with Con-Way NOW I averaged 96 cents a mile, with it being higher closer to the beginning and gradually dropping right before Panther bought 'em, but overall it was 96. I occasionally, but rarely, get a run for somewhere between 70 and 75 cents, but even those are usually with a FSC that averages 9 or 10 cents a mile. I don't see many of those. There was a couple or three months where we saw a lot of them, but very rarely anymore.

"If you have to drive 100 miles to your next pickup off a 400 mile run, your percentage of deadhead is twice that of a 800 mile run. Working smarter…not harder!"

As I have said on here many times in many ways, the one thing that will kill you sure as dead out here is excessive unpaid deadhead. If you get a load offer with a lot of deadhead, either turn it down or ensure that it gets paid for, either in a bonus or a higher FSC. It's all about the Cost Per Mile, whether it is 30% deadhead or 0% deadhead. It's revenue per mile for all miles minus the cost per mile for all miles. Nothing else matters.

"fastman1…
Your statement “A.Blair to me is a Bottom Feeder and part of the problem in the business today” borders on libel."

Unflattering, perhaps, but not quite libel. It's an opinion, not an accusation or a statement. He used the clever "to me" disclaimer much in the same manner that you used the "can" disclaimer with "FSC’s for vans can raise their pay to 1.10 cpm." Reminds me of ISP's who state you can get up to 8 Mbit/s with their Internet. Few rarely get it, but that's what it's capable of under rare, ideal conditions. I wonder how frequently it is that vans get 65 cents a mile plus a 45 cent FSC.

At least you didn't say, "We pay vans up to $1.10 a mile, or more!"

Thank you for that.

In the last 4 weeks I have had 3 particular loads of 77 cents a mile that had a FSC of 36 cents, 29 cents and 38 cents. Every one of them were 600 miles plus. Fortunately, even with my flat-rate per mile contract, I'm not limited to an "up to" ceiling.

"Let’s understand a little known fact. The companies you drive for are as much to blame as any other expedited company in the industry."

It's not that little known. In a shipper's market like we have now, they're all bottom feeders. It's a catfish-eat-dogfish world out there right now and the fishermen are reeling in lines loaded with carp.

"Then the challenge goes to you… show me how it is remotely possible to spend a dollar a mile owning and operating a straight truck."

Again, there's a difference between netting something, anything at all, and netting a sustainable profit. Of course no one has a truck that costs them $1 to operate (big trucks, maybe, though), but that doesn't mean their costs are such that they can live sustainably long term on $1 a mile. Netting something is the short-term little picture, netting a sustainable profit is the long term big picture. And costs to operate a truck, to do this job, often include things other than solely costs to operate the truck. Just because you personally haven't experienced those costs doesn't mean it's wrong or some kind of a failure if someone else has them. Yes, one can be profitable in a van at 65 cents, maybe even highly profitable, but only under certain conditions, and certainly not by the majority of people who are in this industry.

But like you said, if you're happy where you are stay there. To be sure, there is not a carrier out there who is a good fit for everyone. The only certainty is that every carrier will drive everyone crazy in some way or another. The trick is to find a crazy you can live with.

"Do they eat liver in third world countries?"

Often each other's.

Lawrence · Sep 29, 2009

This thread has just about reached it's expiration date. Anything useful and informative has been said already...so I will be locking this in 10, 9, 8, 7, 6. 5, 4, 3, 2.............