Progressive raising rates
- Thread starter RMPM01
- Start date
I didn't care for it....everytime I post about my CPM I get somewhat blasted....
The gist of it was IF I had my own authority why would I run it for...even $1.20 which I could and make a good profit...when I could pass it off to a sleazebag no name runner for .80 or .85 and I could sit at home...AND that idiot thinks he's making good money?>....DOH
You can't really say that, as different shippers like different positions.
And you know this how?
Sent from my Fisher Price - ABC 123
The answer to that would be zero ... Unless you're talking T-val
Tennesseahawk
Veteran Expediter
And you know this how?
A cute little blonde at Purina told me. But I won't reveal her position.
Tennesseahawk
Veteran Expediter
I disagree. There are still still shippers who are too lazy to shop, don't know better, or are sticking it to their company; not to mention those who REALLY need it moved NOW. And I bet that's exactly why Panther uses those rates to begin with.
We can agree to disagree. While I concede the noted exceptions, the $ 4.00 / mile straight truck buyers are few and far between.
Tennesseahawk
Veteran Expediter
I'd say they don't exist, except in Fantasyland. I know Panther doesn't count on those $4 rates, but there's bound to be a fish to be hooked every so often.
The NLM loads and th bid board loads are what goes cheap. The direct customer loads go for a higher rate. But when you are a new carrier starting out in the business you do not have a reputation to use as leverage to gain access to new freight sources. The only tool that a new carrier has to gain access to the same freight sources as the larger more established carriers is to lower their rates. Or if the new carrier is the only option for the shipper and the shipper is forced to use the carrier with no reuptation and the carrier performs well, the door may also be open. But when you do not have a nice office and a stellar reputation, all you have to work with it price! I'm not saying that everyone does that, but that is why they have fixed the price of a gallon of milk. Becoming a Dairy farmer is pretty easy and there are very low barriers to entry. It is so easy to get into that if they didn't fix the price of a gallon of milk no one would make any money!
guido4475
Not a Member
How do ya figure? I've worked for several small carriers in the past that have operated out of their house, basement, and broom closet.Even one operated out of a fifth wheel trailer in a backyard, no kidding. The point I am trying to make is, they have alot lower of operating costs than bigger carriers, a fraction of,and more flexible, so they can go to the toilet with their rates in order to make 20 bucks on a load, and still survive. I doubt if a larger carrier can do that, and still survive.
The bigger carriers are not for the most part the low price guys. They have staffs and infrastructure costs to support. The very small guys are able to shift a lot of expenses such as insurance to the fleet or working from home. Larger fleets have no such cost saving advantage. Most I know of will not go as low as many of the multi van carriers can or do.
I've read of many times how Walmart, with a large overhead, comes to town and drives the mom and pop stores out of business because they can't compete price wise yet we are led to believe that in the expedite business the mom and pop carriers can put a hurtin on the large branded carriers because the large carriers can't compete price wise. Yea, makes perfect sense.
paullud
Veteran Expediter
It actually does make sense, Walmart has purchasing power that lowers their costs, bigger carriers have overhead that increases their costs.
Walmart has overhead that increases their costs too.
I am sure if the mom and pop business was run out of their house and they could get their suppliers to provide their own insurance to do business with them they could do well vs Walmart. Bit alas you only seem to find that structure in the world of cargo vans.
This the point of the thread. Individuals were getting insurance cheaper than a carrier could. It never made sense and the insurance Connie's are figuring out the real loss exposure and it is adjusting accordingly.
This the point of the thread. Individuals were getting insurance cheaper than a carrier could. It never made sense and the insurance Connie's are figuring out the real loss exposure and it is adjusting accordingly.
EASYTRADER
Expert Expediter
Unless you are a commie socialist you shoul not be using progressive insurance. They have the name progressive for a reason. Doing bussiness with them is like sticking a match to the constitution.
Sent from my SPH-D700 using EO Forums mobile app
Sent from my SPH-D700 using EO Forums mobile app
My peve with insurance is we pros that drive an average of 50,000 to 100,000 pluss miles a year carry high coverages and have the beter driving records and accident free miles driven as compared to the average driver but pay the highest premium. Meanwhile the average person driving 5,000 10,000 miles per year that should not even be driving can get insured for dirt cheap and low coverages and have a higher loss rate per miles driven.
The average person has an at loss accident aproximately every five years. The reason why our insurance rates are always increasing is we are paying thier losses. However Ive always belived you cant be over insured and good coverages hpoefuly reduce the risk of loosing everything in a lawsuit.
Bob Wolf.
The average person has an at loss accident aproximately every five years. The reason why our insurance rates are always increasing is we are paying thier losses. However Ive always belived you cant be over insured and good coverages hpoefuly reduce the risk of loosing everything in a lawsuit.
Bob Wolf.
It is self serving to label a multi carrier business model as unethical just because they make it hard for you to compete. I have had vans on with large companies that do all the things you describe including telling me to only carry $10k insurance. And one multi carrier, working from home type that was harder on me than the Fed but treated me and my drivers like family.
I got into to this business many years ago via knowledge I got from my wife working in the insurance industry. She has been telling me for years that Progressive is buying into the market with low rates and the day would come they couldn't maintain. That day is here.
And independents and small fleets are cheaper because they are less risk. When I started in this it was stay under 20 units for the best rates. Now it is 10.
I got into to this business many years ago via knowledge I got from my wife working in the insurance industry. She has been telling me for years that Progressive is buying into the market with low rates and the day would come they couldn't maintain. That day is here.
And independents and small fleets are cheaper because they are less risk. When I started in this it was stay under 20 units for the best rates. Now it is 10.