Recruiting Manager

[lhannah]

I sleep when I get back home and I dont have to hunt for freight. I have a customer base within a 75 mile radius of my home that calls me when they have something that needs hauled. I pick up the load, deliver it, deadhead back home and wait for another call. Been doing it this way for 5 years now and it works real good.

Then there is someone out there who can do it. How busy do you stay? Is this your only income?

I am interested in how you make it work. I think there are a lot of people out there who would love to do exactly what you are doing.

 

[Camper]

Why on earth would you take freight for .85 a mile when the same freight is being driven around by other drivers for +.95?

I hear what you're saying but here's the thing: There is no hard and fast rule on rates. It's what the market forces dictate. lower volume and high capacity(a.k.a today's market conditions) are going to be more favorable to say, the .85 rate as opposed to a higher rate such as .95. If you feel the rate is too low, then don't take it. Chances are, somebody else will. However, If it's truly a "low" rate, nobody else will and the carrier will have to adjust, accordingly. Simple supply and demand.

 

[fastrod]

Then there is someone out there who can do it. How busy do you stay? Is this your only income?

I am interested in how you make it work. I think there are a lot of people out there who would love to do exactly what you are doing.

I can stay as busy as I want and I also have a second business. It is fairly simple to do, get a van, get your insurance in order, get your authority and start selling your service to shippers. Once you have your authority you are a carrier so you need to think and act like a carrier. The hardest thing about it is making the decision to do it, after that it is fairly easy.

 

[mcavoy33]

I sleep when I get back home and I dont have to hunt for freight. I have a customer base within a 75 mile radius of my home that calls me when they have something that needs hauled. I pick up the load, deliver it, deadhead back home and wait for another call. Been doing it this way for 5 years now and it works real good.

I work for a "local" company that does national delivery and this is what they do. There is considerably more money in contracts with customers, you don't have to bid loads, you have a set price (I assume). I regularly go to the same shippers, then we use the load boards to get me home.

The company seems to be able to afford to do things like rent trucks and stuff that companies wouldn't normally be able to afford to do and make a profit. However, being in a key lane and having a strong manufactoring sector is key.

But they also have a sales staff that cold calls to build their client base. In the employee handbook, it says that the s/t drivers tend to be home every second night.

I'm curious, what do you do when a customer has a delivery and your already on a run?

 

[purgoose10]

I can stay as busy as I want and I also have a second business. It is fairly simple to do, get a van, get your insurance in order, get your authority and start selling your service to shippers. Once you have your authority you are a carrier so you need to think and act like a carrier. The hardest thing about it is making the decision to do it, after that it is fairly easy.

Your absolutely right. Once that customer knows you and the job you will do for him he won't ask about the money if it's within reason. And if your on a personnal basis with the shipper it's a little easier to get the money. With good shippers it's more service than money. The only reason shippers are bidding on freight and using cheap rates is because the trucking companies are cutting the rates not the shippers. I have two C/Vans at one customer and when we get together he just laughs about companies and how they do business. The trucking companys bid an cheap rate then can't get anyone to haul it making the shipper mad. One lady I haul for pays me a good price because she knows when she calls me if I can get there I will and she won't worry about the service.

 

[lhannah]

But they also have a sales staff that cold calls to build their client base. In the employee handbook, it says that the s/t drivers tend to be home every second night.

I'm curious, what do you do when a customer has a delivery and your already on a run?

This is my point. Most of our customers want coverage first. I don't work with anyone who would take the time to call one van to see if they happened to be around. However, I am not saying that it isn't possible, merely that it isn't my experience.

Back to what camper is saying. I don't take cheap rates in most situations. Most of the people we do business with know where are rates stand but still come to us out of necessity or because of our service. However, I think that most customers are willing to pay rates higher than that .85 (depending on what the mark up is of course) as long as they receive good service. If I thought customers absolutely needed lower rates then our company would be forced to drop them. However, I think long term that drivers will realize that they can get better rates and will make the transition to those companies.

All this is personal opinion and highly debatable but I enjoy discussion.

 

[Mike99]

It's not a low rate if many drivers will run for it. "Low" is a relative term. What's low to someone with high overhead costs isn't going to be low to someone with fewer overhead costs.

Camper! Wake up! 87 cents including fuel IT IS A LOW RATE ! Panther aprox $1 per mile ,TriState 1, Whirlwind over 1, All State 96 cents, Express one 1, Ceva over 1, Landstar same.... Should I continue? C'mon man...Be serious . 87 cents is 87 cents.

 

[Camper]

Camper! Wake up! 87 cents including fuel IT IS A LOW RATE ! Panther aprox $1 per mile ,TriState 1, Whirlwind over 1, All State 96 cents, Express one 1, Ceva over 1, Landstar same.... Should I continue? C'mon man...Be serious . 87 cents is 87 cents.

Again, as I've said earlier in this thread; If it's a low rate, carriers wouldn't be offering it and contractors wouldn't be accepting it. The bottom line is it's only a low rate if nobody is willing to run for it. If you, yourself, feel it's a low for your particular operation, it's simple, don’t accept it.

Also, rates are not a one size fits proposition. Just because Carrier A offers $1/mile doesn't meant Carrier B can't offer .87/mile. If you don't like Carrier B's rates, again, it’s simple, don't run for carrier B. If the rate is too low, nobody will run for them and then guess what, B will adjust their rates. See, that's how supply and demand works.

Given today's economic environment and the excess van capacity, rates have more downside than upside.

Instead of LRT's rates being "low", maybe the other carriers' rates you mentioned are "high". Again it's all relative. Perhaps LRT is ahead of the economic curve.

 

[Mike99]

Again, as I've said earlier in this thread; If it's a low rate, carriers wouldn't be offering it and contractors wouldn't be accepting it. The bottom line is it's only a low rate if nobody is willing to run for it. If you, yourself, feel it's a low for your particular operation, it's simple, don’t accept it.

Also, rates are not a one size fits proposition. Just because Carrier A offers $1/mile doesn't meant Carrier B can't offer .87/mile. If you don't like Carrier B's rates, again, it’s simple, don't run for carrier B. If the rate is too low, nobody will run for them and then guess what, B will adjust their rates. See, that's how supply and demand works.

Given today's economic environment and the excess van capacity, rates have more downside than upside.

Instead of LRT's rates being "low", maybe the other carriers' rates you mentioned are "high". Again it's all relative. Perhaps LRT is ahead of the economic curve.

OK...It is a low rate in comparison to most of other carriers rate. I think you like to make simple things complicated. When I demonstrate you that 90 % of the carriers run for around a buck and you still saying that 87 cents it is not a low rate ...no more to say. Even a 10 years old understand what is average and what is below average...

''If it's a low rate, carriers wouldn't be offering it and contractors wouldn't be accepting it.''
McDonalds offer junk food every day . Some people buy it. But that does not mean that is not junk food. People buy cigarettes but that does not mean that they are good

 

[greg334]

27 posts and not one of them explains where those rates in the second post came from.

 

[Camper]

OK...It is a low rate in comparison to most of other carriers rate. I think you like to make simple things complicated. When I demonstrate you that 90 % of the carriers run for around a buck and you still saying that 87 cents it is not a low rate ...no more to say. Even a 10 years old understand what is average and what is below average...

''If it's a low rate, carriers wouldn't be offering it and contractors wouldn't be accepting it.''
McDonalds offer junk food every day . Some people buy it. But that does not mean that is not junk food. People buy cigarettes but that does not mean that they are good

I don't undertand the complaint. If you don't like the rate, don't run it. This is a free market, not a union workshop. Rates are determined by market forces, not what contractors feel they deserve.

The game isn't about "average" rates' it's about the rates that work for each individual business/situation. If a rate is profitable to me, I'll run it, regardless of whether it's low or high in comparison to other rates.

 

[Mike99]

I don't undertand the complaint. If you don't like the rate, don't run it. This is a free market, not a union workshop. Rates are determined by market forces, not what contractors feel they deserve.

The game isn't about "average" rates' it's about the rates that work for each individual business/situation. If a rate is profitable to me, I'll run it, regardless of whether it's low or high in comparison to other rates.

The discussion was if 87 cents per mile is low or not. The discussion was not about that if is profitable or not. But what can I say, if you think that 87 cents per mile is a good rate go ahead and run it. When 10 carriers pay a buck per mile and ONE pay 87 cents ...you said it's normal. Man....

 

[greg334]

I want to know where the 87 cents came from. Is it LRT that is giving it or who?

I thought that FedEx was at 77 cents and panther was something like that.

 

[Camper]

The discussion was if 87 cents per mile is low or not. The discussion was not about that if is profitable or not. But what can I say, if you think that 87 cents per mile is a good rate go ahead and run it. When 10 carriers pay a buck per mile and ONE pay 87 cents ...you said it's normal. Man....

Perhaps, you should read the whole thread. Nobody said the rate was "normal". Also, this thread wasn't started as a philosophical discussion on rates. It was started by a recruiter. If you don't like his rates, the appropriate thing to do is move along rather than complain about what's being offered.




Posted with my Droid EO Forum App

 

[Camper]

I want to know where the 87 cents came from. Is it LRT that is giving it or who?

I thought that FedEx was at 77 cents and panther was something like that.

That's a good question, as the original poster never quoted an actual rate. Someone threw the figure out there, a few posts in and now we have a philosophical discussion on whether it's a fair rate.


Posted with my Droid EO Forum App

 

[Mike99]

Perhaps, you should read the whole thread. Nobody said the rate was "normal". Also, this thread wasn't started as a philosophical discussion on rates. It was started by a recruiter. If you don't like his rates, the appropriate thing to do is move along rather than complain about what's being offered.


Nobody complained... ..It was a discussion about the 87 cents rate

 

[TSexpediter]

I want to know where the 87 cents came from. Is it LRT that is giving it or who?

I thought that FedEx was at 77 cents and panther was something like that.

I did call them. They pay 87 cents per mile including FS.

 

[greg334]

I did call them. They pay 87 cents per mile including FS.

Well that does seem to be a problem if it is an all inclusive rate.

BUT what is the bottom line?

As already asked, will that rate be offset by the lack of those $95 to $115 a week in other charges, like Commdata fees or cargo insurance?

If I remember right, many carriers charge some outrageous commdata fees, like $3 to load a card and 5%. A few overcharge on insurance too.

I really don't think many will find a cornucopia of carriers where people make lots of cash driving a cargo van.

 

[Camper]

Well that does seem to be a problem if it is an all inclusive rate.

BUT what is the bottom line?

As already asked, will that rate be offset by the lack of those $95 to $115 a week in other charges, like Commdata fees or cargo insurance?

If I remember right, many carriers charge some outrageous commdata fees, like $3 to load a card and 5%. A few overcharge on insurance too.

I really don't think many will find a cornucopia of carriers where people make lots of cash driving a cargo van.

That's just it...Theres too much emphasis by many being placed on the top line(the rate) and not enough being placed on the bottom line. You take the lack of expenses/fees into the equation and you might find you've got something to work with, maybe more profit than that higher rate from which you get fees/deductions taken





Posted with my Droid EO Forum App

 

[Dreamer]

I want to know where the 87 cents came from. Is it LRT that is giving it or who?

I thought that FedEx was at 77 cents and panther was something like that.

We're at .85 plus fsc which I believe is .17 this week.


Dale


Posted with my Droid EO Forum App