I have been talking to a small company that will be hiring me and my Cargo Van. I have seen a couple of the loads and it figures out to be about .89CPM Should I be asking for a FSC or not? They have no hidden fees like Quall Comm or anything like that. Im not looking to run the tires off my Van and it seems i can get 1000-1800 a week with no problem if i want it, is this a good deal?
NO - FSC ?
- Thread starter BigDiesel
- Start date
greg334
Veteran Expediter
http://www.expeditersonline.com/dcforum/DCForumID1/3202.html
I am not good with links on this forum. See HotFr8Recruiter post for an explination of FSC.
I am not good with links on this forum. See HotFr8Recruiter post for an explination of FSC.
Mugg2000
Expert Expediter
>http://www.expeditersonline.com/dcforum/DCForumID1/3202.html
>
>I am not good with links on this forum. See HotFr8Recruiter
>post for an explination of FSC.
The following is the excert from that post, great reading , hit Print when finsihed
http://www.expeditersonline.com/dcforum/DCForumID1/3202.html#10
Prior to Fuel Surcharges, the price of fuel was $1.25 per gallon. The intention of a fuel surcharge program is to supplement compensation to the independent contractor to compensate for the additional cost of fuel. The idea is to keep the price of fuel at $1.25 for the contractor.
Now, still not a believer, look at the following:
Using a typical straight truck which averages 9 miles to the gallon. The trip you are doing is a 450 mile trip. Your fuel consumption for the trip is 50 gallons. Your normal compensation, without any fuel surcharge, is 450 miles times $1.30 = $585.00.
Facts prior to Fuel Surcharges. Facts with fuel surcharge.
Fuel Price/Gallon $1.25 $2.11
Fuel Consumption 50 gallons 50 gallons
Total Fuel Cost 50 X 1.25 = $62.50 50 X 2.11 = $105.50
Fuel Surcharge 0% 12%
0 X $585.00 = $0.00 12% X $585.00 = $70.12
Total Trip Revenue $585.00 $585.00 + $70.12 = $655.12
Less Cost of Fuel ($62.50) ($105.50)
Actual Revenue $585.00 � $62.50 = $522.50 $655.12 - $105.50 = $549.62
NOW, tell me, HOW IS THE PRICE OF FUEL AFFECTING YOUR REVENUE ???????
I hope you can understand this. It did not "cut n' paste" exactly as it is in a "Word" document.
Thanks,
HotFr8Recruiter;-) ;-) ;-) ;-) ;-) ;-)
>
>I am not good with links on this forum. See HotFr8Recruiter
>post for an explination of FSC.
The following is the excert from that post, great reading , hit Print when finsihed
http://www.expeditersonline.com/dcforum/DCForumID1/3202.html#10
Prior to Fuel Surcharges, the price of fuel was $1.25 per gallon. The intention of a fuel surcharge program is to supplement compensation to the independent contractor to compensate for the additional cost of fuel. The idea is to keep the price of fuel at $1.25 for the contractor.
Now, still not a believer, look at the following:
Using a typical straight truck which averages 9 miles to the gallon. The trip you are doing is a 450 mile trip. Your fuel consumption for the trip is 50 gallons. Your normal compensation, without any fuel surcharge, is 450 miles times $1.30 = $585.00.
Facts prior to Fuel Surcharges. Facts with fuel surcharge.
Fuel Price/Gallon $1.25 $2.11
Fuel Consumption 50 gallons 50 gallons
Total Fuel Cost 50 X 1.25 = $62.50 50 X 2.11 = $105.50
Fuel Surcharge 0% 12%
0 X $585.00 = $0.00 12% X $585.00 = $70.12
Total Trip Revenue $585.00 $585.00 + $70.12 = $655.12
Less Cost of Fuel ($62.50) ($105.50)
Actual Revenue $585.00 � $62.50 = $522.50 $655.12 - $105.50 = $549.62
NOW, tell me, HOW IS THE PRICE OF FUEL AFFECTING YOUR REVENUE ???????
I hope you can understand this. It did not "cut n' paste" exactly as it is in a "Word" document.
Thanks,
HotFr8Recruiter;-) ;-) ;-) ;-) ;-) ;-)
BigDiesel,
As an example, both Conway and Express-1 offer ~80 cpm PLUS FSC. They also include QC costs of $35 per week which equates to 1.9-3.5 cpm based on your 1000-1800 mileage numbers. So your effective revenue is 76.5-78.1 cpm.
For FSC....subtract $1.25 from todays avg fuel price and divide by your van's mileage. That should be your FSC. Now take that rate and add to the figures above and compare to your company's 89cpm offer....now you can compare apples to apples.
My problem with a flat rate is that if fuel prices continue to go up, you will be squeezed if you do not have a FSC to compensate.
As an example, both Conway and Express-1 offer ~80 cpm PLUS FSC. They also include QC costs of $35 per week which equates to 1.9-3.5 cpm based on your 1000-1800 mileage numbers. So your effective revenue is 76.5-78.1 cpm.
For FSC....subtract $1.25 from todays avg fuel price and divide by your van's mileage. That should be your FSC. Now take that rate and add to the figures above and compare to your company's 89cpm offer....now you can compare apples to apples.
My problem with a flat rate is that if fuel prices continue to go up, you will be squeezed if you do not have a FSC to compensate.
Mugg2000
Expert Expediter
>I have been talking to a small company that will be hiring
>me and my Cargo Van. I have seen a couple of the loads and
>it figures out to be about .89CPM Should I be asking for a
>FSC or not? They have no hidden fees like Quall Comm or
>anything like that. Im not looking to run the tires off my
>Van and it seems i can get 1000-1800 a week with no problem
>if i want it, is this a good deal?
I have to warn you right up front none of these numbers are mine, they were pulled from Forum discussions like this one. These guys are true hero's IMO. I have never driven a single mile in a Truck.
I have to ask you a few questions if I may.
>I have been talking to a small company that will be hiring
>me and my Cargo Van
You own this Van already? I mean do you have the title?
>figures out to be about .89CPM
are they paying you this both ways?
>They have no hidden fees like Quall Comm or
>anything like that.
How about other fees are they paying Tolls , Insurance, Medical, Health, meals.
Since you want 1800 a week I will take 500 miles as a fair trip to achieve that.
500.00 Expedited Miles One Trip
$2.81 Fuel @ Pump National Average
$0.33 Operaing Cost (OC) ********************
CPM $0.89 <-- your contract
------------ $445.00 ********************
FSC 14% National Avg minus $1.25/Van Mileage
CPM with FSC $507.30 Contract with FSC
MPG 11 Van Mileage
Fuel 1-way (Gal.)45.45 Go Juice
MPH 65.00 Average depending on traffic/state
HOS 7.69 Time you will need to drive
Fuel 1-way (cost)$127.73 Pay for the Go Juice
Operating Cost $165.00 This one will vary of course.
Fuel and OC $292.73 ********************
P/L (end of trip)$214.57 Destination Reached
Deadhead Cost DH $127.73 Whoops no load going back
P/L (after DH) $86.85
Why do I care if I am not a driver. I have a son that has his eye on a 960 Express Sterling and I want to support his dreams, not make his payments.
Thank you in advance
Mugg
>me and my Cargo Van. I have seen a couple of the loads and
>it figures out to be about .89CPM Should I be asking for a
>FSC or not? They have no hidden fees like Quall Comm or
>anything like that. Im not looking to run the tires off my
>Van and it seems i can get 1000-1800 a week with no problem
>if i want it, is this a good deal?
I have to warn you right up front none of these numbers are mine, they were pulled from Forum discussions like this one. These guys are true hero's IMO. I have never driven a single mile in a Truck.
I have to ask you a few questions if I may.
>I have been talking to a small company that will be hiring
>me and my Cargo Van
You own this Van already? I mean do you have the title?
>figures out to be about .89CPM
are they paying you this both ways?
>They have no hidden fees like Quall Comm or
>anything like that.
How about other fees are they paying Tolls , Insurance, Medical, Health, meals.
Since you want 1800 a week I will take 500 miles as a fair trip to achieve that.
500.00 Expedited Miles One Trip
$2.81 Fuel @ Pump National Average
$0.33 Operaing Cost (OC) ********************
CPM $0.89 <-- your contract
------------ $445.00 ********************
FSC 14% National Avg minus $1.25/Van Mileage
CPM with FSC $507.30 Contract with FSC
MPG 11 Van Mileage
Fuel 1-way (Gal.)45.45 Go Juice
MPH 65.00 Average depending on traffic/state
HOS 7.69 Time you will need to drive
Fuel 1-way (cost)$127.73 Pay for the Go Juice
Operating Cost $165.00 This one will vary of course.
Fuel and OC $292.73 ********************
P/L (end of trip)$214.57 Destination Reached
Deadhead Cost DH $127.73 Whoops no load going back
P/L (after DH) $86.85
Why do I care if I am not a driver. I have a son that has his eye on a 960 Express Sterling and I want to support his dreams, not make his payments.
Thank you in advance
Mugg
Another thing to consider with not asking for a fuel surcharge is this...are you prepared to make your carrier more money if the fuel prices go up even more? It is my understanding that the % charged to the customer is based on the total cost of the trip, not just your portion.
For example, if you have a 500 mile trip, let's say your carrier has bid $1.40/mile on. The base cost to the customer is $700.00. Then they add on a 12% surcharge bringing to total cost to $784.00. Your pay is $445.00. Now, a month later, gas prices soar so your company raises the fsc to 15%... so the cost to the customer is now $805.00. But, guess what? Your pay is still $445.00, plus your gas expense has jumped. In essence you've taken a pay cut while the carrier actually made more profit.
This very issue killed us...please really think about this...
For example, if you have a 500 mile trip, let's say your carrier has bid $1.40/mile on. The base cost to the customer is $700.00. Then they add on a 12% surcharge bringing to total cost to $784.00. Your pay is $445.00. Now, a month later, gas prices soar so your company raises the fsc to 15%... so the cost to the customer is now $805.00. But, guess what? Your pay is still $445.00, plus your gas expense has jumped. In essence you've taken a pay cut while the carrier actually made more profit.
This very issue killed us...please really think about this...