Rates for CV's

[lhannah]

Know what it costs to operate your van, and adjust accordingly.

DO THIS, PLEASE!

I often call drivers and ask them what they need to run a certain load. Most of the time they can't even begin to give me a number. It is much easier for you to be profitable if you know what you need to turn a good profit.

 

[Jefferson3000]

I am wondering because if I am supposed to get a certain percentage of the load but I get offers instead is it because I am getting shorted or have the rates dropped so low the company knows we can't run that cheap.
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You are correct in your assumption. Although fuel has gone up, the overall spot rates for vans and now sprinters have fallen like a brick.

Many times rates to a 3PL type customer are spot quotes, not published rates. The lane of travel has become very important in expedite as of late, much the same as truckload freight. It may also change from day to day based on competition (number of trucks) within striking distance of the pick.

Our company is set up to pay a standard rate per mile to the owner op plus fuel, or a determined percentage, whichever ends up being greater. The percentage usually comes into play on the shorter runs. By doing that, the driver knows immediately what to expect, which can speed up the negotiation time.

 

[paullud]

Well..I stopped figuring it along time ago..id have to go out and figure it. Most of us at Load 1 simply take the numbers that are sent ( the total amount paid by the client, our percent (which differs from a minmum amount on up) that is paid to us the FSC and the total and we except it...as has been pointed out, we except runs without even knwing what they pay...

Now knowing the reason that the OP is asking for the info, all I can say is that we don't have this issue at Load 1..the intigrity of the owner and the company has shown through and as contractors we have built a trust that lets us do what we do and not to have to even question what we are paid....

It seems that Load 1 has an excellent reputation along with the owner and looking over the posts from the drivers they all seem happy and pretty busy.

 

[paullud]

You are correct in your assumption. Although fuel has gone up, the overall spot rates for vans and now sprinters have fallen like a brick.

In my limited knowledge of the company's side of things I was thinking they are just seeing what they can have left over for themselves giving the driver enough to keep them happy and not have to turn a load back in.

 

[OntarioVanMan]

It seems that Load 1 has an excellent reputation along with the owner and looking over the posts from the drivers they all seem happy and pretty busy.

Busy,,,would be subjective....but when we do run it is usually at a good rate....
My sig says it all....

 

[OntarioVanMan]

In my limited knowledge of the company's side of things I was thinking they are just seeing what they can have left over for themselves giving the driver enough to keep them happy and not have to turn a load back in.

That IMO is the feeling I used to have at another carrier...they gave just enough for us to get by...all while showing record profits...

 

[chefdennis]

paullud wrote:

In my limited knowledge of the company's side of things I was thinking they are just seeing what they can have left over for themselves giving the driver enough to keep them happy and not have to turn a load back in.

There are definitely companes that do exactly that..they will tell that they are paying "X" per mile or "X" % of the load, but in reality they will call you and they have worked the numbers to fit what they think you will run it for and chances are that is less then they can pay you. That is why you can "bargain" with them alot times and get the rate up...

Some companies pay the dispatchers a bonus based on how much they can save by not paying the o/o / drivers all that they can, pitting the dispatch crew against the o/o /drivers...Now as a business owner (totally away from expediting) and also a O/O i want all that i can get for each run, i do see the company side also...so as long as they aren't paying below what your contract calls for..i see no issue.

The key as mentioned earlier is to know what it takes for you to move your truck and be profitable...once you know that..life gets that much easier for everyone involved....but the best thing is to contract to a carrier that you don't have to worry abot shorting you and one that you can rest assured has the o/o drivers best interest in line with ther own....Thanks Boss!!

 

[purgoose10]

DO THIS, PLEASE!

I often call drivers and ask them what they need to run a certain load. Most of the time they can't even begin to give me a number. It is much easier for you to be profitable if you know what you need to turn a good profit.

The business end of things in all area's of trucking is the same. I'd almost bet 50% of the operators out there can't tell you realistically what they're operating costs are.

 

[greg334]

It seems that Load 1 has an excellent reputation along with the owner and looking over the posts from the drivers they all seem happy and pretty busy.

Sorry to burst a bubble and not saying anything negitive about the company, but the euphoria here on this forum does not represent the feelings of some owners who are leased onto Load-1 and have been for a while. I won't repeat things from those about specifics of their issues but the ecstasy in many of the posts seems at times a bit much at time.

 

[chefdennis]

Greg is right, there are those that have come to Load 1 and for one reason or another, it didn't workout and they left..and I am sure there are people that are still there that aren't as happy as those greg is attempting to diminish...but the facts are what they are, Load 1 has a large number of O/O's / drivers that are more then happy with how things go there and even when it is slow, we understand that they can't pull freight out of thin air...I've had 2 runs this week, just got dispatched for my 3rd...that will make a not so good week into a not so bad week...

So yea, for most everyone i know that leases to Load 1, this is where we feel that we are contracted to the best carrier we can be and it really doesn't matter that Greg feels the need to knock that, or to "set the record straight"....we all know that we are with a owner and carrier that has the intigrity and openness to to provide an enviroment that makes it a great place to lease to and make good money while do it...are there ever times when issues come up that not everyone is happy with? LOL, yea....but the good aspects truely outway those issues and even when those arise, management from the top to the buttom work asap to address and improve them....

greg wrote:

but the ecstasy in many of the posts seems at times a bit much at time.

You know what they say about "opinions".....

 

[greg334]

Read carefully what I am saying and I will repeat, it is not knocking the company at all, Load-1 is a very good company.

Sorry to burst a bubble and not saying anything negitive about the company, but the euphoria here on this forum does not represent the feelings of some owners who are leased onto Load-1 and have been for a while. I won't repeat things from those about specifics of their issues but the ecstasy in many of the posts seems at times a bit much at time.

The point I'm making is that life is a bit different than on this forum where the euphoric posts about how great life is there isn't countered with reality. This isn't knocking the company at all if you think about it, it is knocking the people here who are just over themselves with such great exuberance over the company and defending it as you just did.

 

[chefdennis]

Chef wrote:

and I am sure there are people that are still there that aren't as happy as those greg is attempting to diminish...

See greg, those red words..they say "those" as in people"..i totally understand it was US, the "people" that you were taking a shot at.. it was clear that you don't appreciate what we have to say as it looks like it "gets under your skin"...oh well...the facts are that those that post here about Load 1 are happy, we trust the carrier and the people there that we deal with...if it bothers you that we state it, lifes tough, and it ain't goin to stop....oh and the inference that those that post the positives of Load 1 are NOT posting "reality" is the same as calling us LIARS...care to show where we are not posting in the Reality???

curmudgeon....

Oh and as i said, there are those that have come and gone that it just didn't work out for, they post here, they are more then welcome to refute anything that is said...as are those that you have talked to, invite them in abd let them have their say....

 

[greg334]

What ever you say there Dennis.

It doesn't make me no nevermind what you guys post but as I was pointing out that there is more to the story that is based solely on the post from paullud.

But it seems many are like the fedex pom pom squad which is funny.

 

[chefdennis]

You can call it anthing you like greg...like i said, there are people here that came and left...they are welcome to dispute anything we say, as are those you have spoken to, just invite them in....and again. please point out out "non reality" that you spoke of...unless you can do that, you are calling us Liars....so point them out....and i'll be happy to show anyone that want s to see my "fleet vison" trip reports and my paysheets also...as i have while sitting with others that ask about Load 1....

Personally I like you are funny for even trying to point out there is a "reality" that we aren't posting about...especially when you won't back that up...

 

[purgoose10]

There isn't anyway to make every driver happy. If they made $5 a mile they would still complain. I'm not with Load 1 but I can say it's nice to hear good news for a change.

 

[Jefferson3000]

In my limited knowledge of the company's side of things I was thinking they are just seeing what they can have left over for themselves giving the driver enough to keep them happy and not have to turn a load back in.

I can understand that feeling of not knowing whether you've been taken advantage of. I don't know who it is you run for, and even if I did, I probably would not know what was REALLY going on. I just don't think that way. I'm not out to take advantage of people who run with us. Yes, I am looking to make a profit in this business, and I don't do it for charity's sake. But I think you will hear a similar note about rates from other carrier officials on this forum, as well as the contractors.

I had five vans/sprinters as of December. I now have one. The rest have moved on to do something else, and I haven't bothered to replace them. Why? It's a LOT of work to load a standard cargo van right now, considering what we will profit from the endeavor, while keeping the pay to the van at a level that is not an embarrassment.

 

[paullud]

I can understand that feeling of not knowing whether you've been taken advantage of. I don't know who it is you run for, and even if I did, I probably would not know what was REALLY going on. I just don't think that way. I'm not out to take advantage of people who run with us. Yes, I am looking to make a profit in this business, and I don't do it for charity's sake.

When I started I was told X% of the load then I find out that is not true. I am new to this company so there is a lack of trust because I just don't know. I was thinking it maybe a situation where the majority of the time they are getting 1.25/mile so they offer me .90/mile so we are both profitable since we are both doing this to make money.

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[Jefferson3000]

When I started I was told X% of the load then I find out that is not true. I am new to this company so there is a lack of trust because I just don't know. I was thinking it maybe a situation where the majority of the time they are getting 1.25/mile so they offer me .90/mile so we are both profitable since we are both doing this to make money.

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So are you SURE that you are not getting the percentage of the rates you were contracted at, or is it that what you are being offered is less money per mile than what you had been getting or expecting?

 

[paullud]

So are you SURE that you are not getting the percentage of the rates you were contracted at, or is it that what you are being offered is less money per mile than what you had been getting or expecting?

I am sure I am not getting the percentage because the offers that are made are dead even things like $400.00, $200.00, etc. My feeling is after the responses from people here is that the majority of the freight they are getting is to low to run at the percentage agreed upon. I also think that if there is an offer that is higher than normal that they may be paying less than the percentage. I have no proof and I am not 100% sure that is just an assumption which we know how dangerous that can be. I know they are in business to make money as I am but I am just concerned because I like upfront honesty no matter what it is good or bad and this is just kind of a red flag even if what they are doing is to benefit the driver. I would rather have them tell me they have a load that they picked up for 1.25/mile will I do it for. 90/mile since I feel I have a right to this information being that we are in business together. The rates are about what I was expecting and I am still making money since anything over about .25/mile will be profitable, not that I would ever run that cheap.

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[Jefferson3000]

Perhaps a face to face conversation the next time you get near the office would be in order. I would not walk in there with this as your only bone to pick, especially if you are ultimately happy with the recent offers. I would address it as a sideline discussion and see where it takes you.