Multi-Carrier Thread

[OntarioVanMan]

That is ok we don't have to agree....LOL....I see some of your points....and about "other carriers" and obtaining loads.....I can imagine some don't bother bidding because their 30-35% profit margin is not there..many areas where competition is tough....and they can not survive on 5-10% or less profit on a continuous basis....
and....I guess it depends on what you think is an acceptable rate for a CV to be able to operate and make a decent profit....including future replacement.... .55 -.60 cents for ALL miles ( includes all DH) just leaves no room for profit....

 

[PreacherRich]

That is ok we don't have to agree....LOL....I see some of your points....and about "other carriers" and obtaining loads.....I can imagine some don't bother bidding because their 30-35% profit margin is not there..many areas where competition is tough....and they can not survive on 5-10% or less profit on a continuous basis....
and....I guess it depends on what you think is an acceptable rate for a CV to be able to operate and make a decent profit....including future replacement.... .55 -.60 cents for ALL miles ( includes all DH) just leaves no room for profit....

I agree that it is ok to disagree, if we all agreed about everything, it would be kinda boring....I do agree about the 55 to 60 cents leaves no room for profit.

 

[OntarioVanMan]

I agree that it is ok to disagree, if we all agreed about everything, it would be kinda boring....I do agree about the 55 to 60 cents leaves no room for profit.

Now you are management...I hope you don't do what some others do and ask your O/O's to chase down loads 2-300 miles away and the rate does not reflect them miles....that really reduces the value of any load....

 

[xiggi]

I dont tjink there.is much denying running for multiple carriers.warps the number of.available trucks and leads to lower prices for everyone.

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[PreacherRich]

I dont tjink there.is much denying running for multiple carriers.warps the number of.available trucks and leads to lower prices for everyone.

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Really, it is not that people run for multiple carriers, it's that that current expediting bid board software hasn't yet adjusted to the market by grouping vin or license plate numbers for available trucks. That would show an accurate count of truck availabilty. Many carriers have requested that be done and it is being looked into.

 

[PreacherRich]

Now you are management...I hope you don't do what some others do and ask your O/O's to chase down loads 2-300 miles away and the rate does not reflect them miles....that really reduces the value of any load....

We are approaching things a bit differently. Our drivers actually tell us what they want for the rate of any given load, then we bid accordingly. We actually do work together, our drivers are not employees, they are business people and we try to help each other accomplish goals for the benefit of everyone.

 

[OntarioVanMan]

Really, it is not that people run for multiple carriers, it's that that current expediting bid board software hasn't yet adjusted to the market by grouping vin or license plate numbers for available trucks showing an accurate count for truck availabilty. Many carriers have requested that be done and it is being looked into.

Yes..and until that happens....You get tagged....
Furthermore....I think these load boards should demand every carrier having access, have some sort of bond posted to protect an O/O. I'd be happy with a bond that is flexible enough to let you operate and is based say on number of vehicles under your banner.

 

[xiggi]

Yes..and until that happens....You get tagged....
Furthermore....I think these load boards should demand every carrier having access, have some sort of bond posted to protect an O/O. I'd be happy with a bond that is flexible enough to let you operate and is based say on number of vehicles under your banner.

I am not for limiting access to boards because of the number of trucks one has. I do understand the idea but believe it unfairly grants an advantage to established companies. Last year Indianapolis created a regulation saying taxi cimpanies had to have x number to be licensed, again nice in theory and can help improve qaulity but penilizes the little guy with a dream that built this country.

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[Rocketman]

I am not for limiting access to boards because of the number of trucks one has. I do understand the idea but believe it unfairly grants an advantage to established companies. Last year Indianapolis created a regulation saying taxi cimpanies had to have x number to be licensed, again nice in theory and can help improve qaulity but penilizes the little guy with a dream that built this country.

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I agree with not limiting any business based on its size. I also see a lot of these smaller carriers dropping out while still in debt to their contractors. Its nothing new, happens every day in other lines of work too. I would support a limit, a fair, reasonable, attainable limit for the smaller carriers. A limit that would not allow them to book more work than they can handle financially.

 

[PreacherRich]

Yes..and until that happens....You get tagged....
Furthermore....I think these load boards should demand every carrier having access, have some sort of bond posted to protect an O/O. I'd be happy with a bond that is flexible enough to let you operate and is based say on number of vehicles under your banner.

I agree that drivers do need to be protected. The best protection is doing your research before running loads for any carrier. Talk to other drivers, search EO, ask the tough questions from people at the company, then hold them to it. If they don't pay when and how they say they will, STOP WORKING WITH THEM. There are some great companies out there that actually do what they say they will do.

OK, as a Bible believing Christian, here is the best advice I can give you. Take it or leave it.
Pray about your decisions. One of the first companies that I was going to sign on with , I prayed about it and I did not have peace about signing on with them. They recently just went out of business. Another carrier slowed way down on their payments, I ran a couple loads after that with a quick pay program then lost peace about working with them, they are now out of business. Listen to what God is saying to your hearts, He is faithful. Unlike others, I have never been cheated out of my pay. Not because I am that bright but God is that good. He does want to lead and guide you even through your everyday decisions.

 

[scottm4211]

I have a magic 8 ball. :thumbup:

 

[xiggi]

I have a magic 8 ball. :thumbup:

There is an app for that!

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[Rocketman]

We are approaching things a bit differently. Our drivers actually tell us what they want for the rate of any given load, then we bid accordingly. We actually do work together, our drivers are not employees, they are business people and we try to help each other accomplish goals for the benefit of everyone.

I gotta give it to ya Preacher....you talk a good game

Actually, I do believe you have good intentions and you are probably capable of following through on them. At least to some extent. Keeping your bills paid has to become the absolute number one priority in any business. Those that understand that...and are capable of generating enough profit to actually do it...are the ones who succeed.

I think you have a good approach. Time will tell if you can make it work or not. Good luck!

 

[PreacherRich]

I agree with not limiting any business based on its size. I also see a lot of these smaller carriers dropping out while still in debt to their contractors. Its nothing new, happens every day in other lines of work too. I would support a limit, a fair, reasonable, attainable limit for the smaller carriers. A limit that would not allow them to book more work than they can handle financially.

I look at companies like Eclipse, which was one of my favorite companies to run for. Last I knew, they factored about everything. They do a pretty large volume of business for being such a young company. The money that comes in goes right back out to their drivers and dispatchers first. They are responsible with their finances and with the framework they have in place they sky is the limit volume wise. Their drivers are happy, their dipatchers are happy and as far as I can tell the people they do business with are happy.

Everything needs to be based on performance and not age or size. Most of the the carriers that I seen go under have shown many warning signs in advance. Be aware of how a company pays, credit ratings, driver complaints, (though even great companies have many complainers running around) how a company treats you as a driver is a good indicater of the character behind the company. Just my opinion though...

 

[PreacherRich]

I gotta give it to ya Preacher....you talk a good game

Actually, I do believe you have good intentions and you are probably capable of following through on them. At least to some extent. Keeping your bills paid has to become the absolute number one priority in any business. Those that understand that...and are capable of generating enough profit to actually do it...are the ones who succeed.

I think you have a good approach. Time will tell if you can make it work or not. Good luck!

Thanks, You Rock, Rocketman...

 

[Rocketman]

The money that comes in goes right back out to their drivers and dispatchers first.

That is the key right there. Then they have to provide a building, utilities, load boards, insurance, compliance, etc, etc. All of those things have to be accounted for before the owner of the company gets a bologna sandwich even. Otherwise, its not a matter of "if", it's a matter of "when".

The same concept is true for about any business. How many O/O's have failed because they run all week and spend everything leftover after fuel expense. Then when they have a breakdown, their all upset with the carrier the vehicle manufacturer, the garage and anybody else they can think of because "they" failed.

 

[purgoose10]

That is the key right there. Then they have to provide a building, utilities, load boards, insurance, compliance, etc, etc. All of those things have to be accounted for before the owner of the company gets a bologna sandwich even. Otherwise, its not a matter of "if", it's a matter of "when".

The same concept is true for about any business. How many O/O's have failed because they run all week and spend everything leftover after fuel expense. Then when they have a breakdown, their all upset with the carrier the vehicle manufacturer, the garage and anybody else they can think of because "they" failed.

There is so much in what you say. Your paragraph probably takes out half the Owner Operators.
Company's used to have Maintenence accounts that would automatically take out so much for breakdowns from each settlement sheet. Good idea if its with a reputable company.

 

[PreacherRich]

The same concept is true for about any business. How many O/O's have failed because they run all week and spend everything leftover after fuel expense. Then when they have a breakdown, their all upset with the carrier the vehicle manufacturer, the garage and anybody else they can think of because "they" failed.

I agree as a driver you have to have a plan and stick to it. Drivers have insurance, maintenance and repair costs, replacement costs and of course fuel costs. A good goal is that if you are working in July you are working to pay September or even Octobers expenses but still budget like your broke. You can get there with some planning and hard work.

Here is an example: 7000 paid miles a month with 20% Deadhead
Fuel - .28 ( 6 cents is deadhead so, limit empty miles & if you drive slower your mpg goes up)
Ins - .055
maintenance - .042 ($300 a month set aside for that)
Replacement - .06 (you can replace, or pay off a $20,000 vehicle in 4 years)

In this example the total cost to run a cargo van is about 44 cents a mile. These are your business expenses and you have to make sure that as loads come, you put that money away. Another option is take the first part of the month to pay all your fixed expenses and put money away for fuel, than you can use the last part of the month to run for profit. The point is that drivers need to take care of their business first to sustain taking care of their home. We all need to manage our business in a way that is smart and not just pay as you go.

Now how much do you want to bring home? With the 7000 mile a month example, if you want to bring home $800 a week you will have to average $0.90 a mile. If you want to bring home $1000 a week you will have to average $1.01 a mile. You can run less miles at a higher rate or more miles at a lower rate and accomplish the same thing. The driver needs to decide what fits their goals and lifestyle. The sad thing is that too many companies would rather work with drivers that have an employee mentality. They just run them until their wheels fall off, give them no guidance, have no idea what their goals are, then just recruit other drivers to replace them when they fade away.

 

[Rocketman]

Rich, I use a little bit different method for coming up with the numbers, but in the end your cost per mile is within a penny or two of what I would guess. We do have to remember that no matter how much research you do, costs per mile can only be a guess. You can buy a brand new lemon right off the lot and your costs will be more or you could buy a used vehicle with 200,000 miles on it and drive it 5 years with nothing more than general maintenence. There is some luck involved. But these numbers will suffice in "most" situations.

The one thing I would want to clarify and point out. Your numbers as well as mine will show approximately a 50% split. About 50% of your revenue should be spendable income. If its not, you probably need to be looking at why. Also...what I want to clarify... is that when I calculate these numbers, I consider every mile driven to be part of the calculation. Odometer reading when you leave the house for the month minus the odometer reading when you return home.

For those new to ownership, I have a fairly simple suggestion. Until you have a nice sum of money set aside, I suggest you pinch every personal penny you can for the first six months to a year. You should have 2 seperate accounts set up. One for the truck and one for personal money. Take absolutely as little as possible out of your gross pay each week to survive on. Let the money build up in the truck account. When you need repairs or general maintenence, the money will be sitting there waiting on you. I suggest having a minimum of $5,000 in that account before you spend one penny on yourself that isnt absolutely necassary for your survival. After a year...if you have your truck account where it should be.... you should be able to come up with your own numbers and adjust it to your personal liking.

 

[tenntrucker]

Sounds like mostly vans doing the multi-carrier think. Was wondering if anyone with a straight truck was running for multi-carriers?

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