Saying "no" to cheap freight!!

[OntarioVanMan]

Got any numbers on that?

nope....just really have to think about it.....set of tires, fuel, tolls, services, oil changes and so forth....towing bills....the fact I was a driver/manager for about 18 of them for 8 yrs....

just the cost of a new pair of steer tires you could buy a used van and go expediting.....*L*

If iam wrong I'll apologize but I highly doubt that , I'll stick with the double forecast...

 

[OntarioVanMan]

Ah yes, the "at least I'm movin'" crowd. I've never heard of one of them that had any success in expediting. Numerically challenged bunch, those folks...

ugh..When I hear that, it is like nails on a chalkboard......

 

[seekerman]

Do you know who this mike guy is ? Tell us, we would love to know.

I think I have a good idea who Mike is. And my response has nothing to do with the marketplace. Mike is a guy whose family has built a successful and highly regarded business in an industry in which that is hard to accomplish. He is a guy who believes that hard work and and an honest approach to one's affairs should be rewarded. He's a guy who believes that denominators are important, and that the dilution of those denominators is a significant factor in the quality of performance in industry and of life in America. As I think most of us believe.

Again, my comments have nothing to do with the marketplace, except regarding his statement that " it is very easy to lower rates to a customer, and near impossible to raise them and once you get that ball rolling it's really hard to stop!". Did we like it when American jobs were lost through NAFTA, and do we like it now that industries continue to migrate to other economies to the detriment of American workers? Was it wise to allow what was, clearly foretold, the mortgage fiasco and resulting devastation to the American economy? I say no.

Don't get me wrong. We all do what we gotta do, and God bless America. But doesn't our intellectual acceptance of that somehow contribute to the ongoing deterioration of standards and the quailty of life in this great country of ours?

I like Mike.

 

[mdpettrey]

Billy Bad A$$ we miss you buddy!!!

 

[seekerman]

Still here Mikey. I ain't goin anywhere.

 

[Dynamite 1]

I think I have a good idea who Mike is. And my response has nothing to do with the marketplace. Mike is a guy whose family has built a successful and highly regarded business in an industry in which that is hard to accomplish. He is a guy who believes that hard work and and an honest approach to one's affairs should be rewarded. He's a guy who believes that denominators are important, and that the dilution of those denominators is a significant factor in the quality of performance in industry and of life in America. As I think most of us believe.

Again, my comments have nothing to do with the marketplace, except regarding his statement that " it is very easy to lower rates to a customer, and near impossible to raise them and once you get that ball rolling it's really hard to stop!". Did we like it when American jobs were lost through NAFTA, and do we like it now that industries continue to migrate to other economies to the detriment of American workers? Was it wise to allow what was, clearly foretold, the mortgage fiasco and resulting devastation to the American economy? I say no.

Don't get me wrong. We all do what we gotta do, and God bless America. But doesn't our intellectual acceptance of that somehow contribute to the ongoing deterioration of standards and the quailty of life in this great country of ours?

I like Mike.

Everybody likes Mike, especially when he wears shiny hats !!!!!!!!!!!

 

[mdpettrey]

Hi Guys,

When I say "Cheap" I don't have a specific amount, we all know what cheap is. I see people that have found ways to cut necessary costs, and ways to "beat" the system and of which neither are good! One of the biggest factors are people with bogus insurance! We are going against some that pay less than $900.00 per year because they lie to their insurance agent about what they are doing. Then they get in a accident and then there are NO coverages and everyone gets sued for something only one person lied about! What happens then....all of our insurance rates go up because the insurance companies need to recoup their losses. This was typically found vehicles under 10k GVW, but now we've also seen it in big trucks too. Or how about the guys that rent Penske type trucks and are running loads with NO log books...how do you compete against someone like that because you're doing the right thing and not running 1300 miles direct?

These are all big factors in this business and just because they're doing it wrong, it allows them to do it cheaper. So then everyone starts to freak out and think we need to beat or match their price....well this is not the case. These companies won't last long as we are taking precautions to ensure they won't be able to do this much longer. We have gone to all the major load providers and 3PL'S, Airfreight forwards, Brokers, Retail customers, and have made them aware of the risks that are out there. So when I say don't run for "Cheap" its for the better of our industry. I've been in the business since I was a kid, and I have seen the people that have succumb to cheap freight and they are here to day and gone tomorrow!

There was a comment posted earlier about this being a "no skillset job", and I have to completely disagree with that. Drivers and a direct representation of your company, just as one of your dispatchers or Salesperson. Remember your company is as only good as your drivers, without good drivers your NOT A GOOD COMPANY!

Regards,

MDPettrey

 

[sbarrett]

Hi Guys,

When I say "Cheap" I don't have a specific amount, we all know what cheap is. I see people that have found ways to cut necessary costs, and ways to "beat" the system and of which neither are good! One of the biggest factors are people with bogus insurance! We are going against some that pay less than $900.00 per year because they lie to their insurance agent about what they are doing. Then they get in a accident and then there are NO coverages and everyone gets sued for something only one person lied about! What happens then....all of our insurance rates go up because the insurance companies need to recoup their losses. This was typically found vehicles under 10k GVW, but now we've also seen it in big trucks too. Or how about the guys that rent Penske type trucks and are running loads with NO log books...how do you compete against someone like that because you're doing the right thing and not running 1300 miles direct?

These are all big factors in this business and just because they're doing it wrong, it allows them to do it cheaper. So then everyone starts to freak out and think we need to beat or match their price....well this is not the case. These companies won't last long as we are taking precautions to ensure they won't be able to do this much longer. We have gone to all the major load providers and 3PL'S, Airfreight forwards, Brokers, Retail customers, and have made them aware of the risks that are out there. So when I say don't run for "Cheap" its for the better of our industry. I've been in the business since I was a kid, and I have seen the people that have succumb to cheap freight and they are here to day and gone tomorrow!

There was a comment posted earlier about this being a "no skillset job", and I have to completely disagree with that. Drivers and a direct representation of your company, just as one of your dispatchers or Salesperson. Remember your company is as only good as your drivers, without good drivers your NOT A GOOD COMPANY!

Regards,

MDPettrey

AWwwwwwww Snap. MPettrey is taking over EO, watch out Elliott!

 

[aquitted]

running freight for CHEAP IS NOT THE ANSWER Remember this... it is very easy to lower rates to a customer, and near impossible to raise them and once you get that ball rolling it's really hard to stop!

Kind Regards,
Mike Pettrey
C&M Transport, Inc.

I have said this many times once you drop your price you never get it back up this is true in any business

 

[sbarrett]

Van "A" does $1.10 loads...his cost per mile is say .40
Van "B' does .90 loads.....his cost per mile is say .20

Both NET .70

If one profits and can pay themselves then I would say..it sucks right now to have a high CPM....

Why do you think their CPM is higher? (drive less...Make more...$$$...?)

 

[OntarioVanMan]

Why do you think their CPM is higher? (drive less...Make more...$$$...?)

Because they have a truck payment
because they have a lower miles per gallon
because they have higher insurance premiums

I enjoyed meeting you that one time Steve!

 

[OntarioVanMan]

Hi Guys,

When I say "Cheap" I don't have a specific amount, we all know what cheap is. I see people that have found ways to cut necessary costs, and ways to "beat" the system and of which neither are good! One of the biggest factors are people with bogus insurance! We are going against some that pay less than $900.00 per year because they lie to their insurance agent about what they are doing. Then they get in a accident and then there are NO coverages and everyone gets sued for something only one person lied about! What happens then....all of our insurance rates go up because the insurance companies need to recoup their losses. This was typically found vehicles under 10k GVW, but now we've also seen it in big trucks too. Or how about the guys that rent Penske type trucks and are running loads with NO log books...how do you compete against someone like that because you're doing the right thing and not running 1300 miles direct?

These are all big factors in this business and just because they're doing it wrong, it allows them to do it cheaper. So then everyone starts to freak out and think we need to beat or match their price....well this is not the case. These companies won't last long as we are taking precautions to ensure they won't be able to do this much longer. We have gone to all the major load providers and 3PL'S, Airfreight forwards, Brokers, Retail customers, and have made them aware of the risks that are out there. So when I say don't run for "Cheap" its for the better of our industry. I've been in the business since I was a kid, and I have seen the people that have succumb to cheap freight and they are here to day and gone tomorrow!

There was a comment posted earlier about this being a "no skillset job", and I have to completely disagree with that. Drivers and a direct representation of your company, just as one of your dispatchers or Salesperson. Remember your company is as only good as your drivers, without good drivers your NOT A GOOD COMPANY!

Regards,

MDPettrey

thank you for that explanation Mike! I agree completely

 

[jelliott]

AWwwwwwww Snap. MPettrey is taking over EO, watch out Elliott!

About 5 or 6 thousand posts and he will have caught me!

 

[davekc]

I was right with you Mike on rogue drivers until this ending.

There was a comment posted earlier about this being a "no skillset job", and I have to completely disagree with that. Drivers and a direct representation of your company, just as one of your dispatchers or Salesperson. Remember your company is as only good as your drivers, without good drivers your NOT A GOOD COMPANY!

It is awesome that you and several others take that approach but I don't think that represents the majority of the transportation industry. Why? Because many are looking for drivers to fill seats and have a clean or a no experience record and have passable DOT health. That is much different than a good driver. It is all about whether they are a risk on paper. A walk through many truck stops provides that confirmation. I am amazed how many leave just on the sleep apnea stuff alone. But I digress.

I will touch where other won't.
Carriers are their own worst enemy in many cases. Over the years with buyouts/takeovers and companies trying to maintain profits of the past, they cut rates to compete and try to make it up through their contractors. See it all over the place. Rate cuts to drivers, manipulation of FSC, manipulation/shortage of mileage, insurance, detention time, fees galore, fuel purchase kickbacks, and I could go on.
This all in conjunction with CSA regs, rising operating costs, is slowly dropping the quality of drivers. No reason to sugar coat anything.
We are all in a industry that is operating on rates from years ago and with minimum cushion and many are totally clueless as to their operating costs or lack business acumen and this is what we get. The good ones either leave to only be quickly replaced, or they become your competition often doing their gig cheaper because they don't have the overhead and are willing to cut corners to gain market share. They also have access to the same information systems that were once proprietary.
My hope is a new breed of companies or management at existing carriers share yours and other thoughts. There are some great carriers make no mistake. But there are some that are driven by profit only, and little else. Many of those drive the market and make it tough on everyone else. Little will change until the industry as a whole gets a little honest with itself.

There is my penny in the pond.

 

[Dynamite 1]

AWwwwwwww Snap. MPettrey is taking over EO, watch out Elliott!

We like you too when you wear your shiny hat !!!!!!!!!

 

[Dynamite 1]

We can also use both of your worthy opinions and witty repartee.

What up Steve !! Give away any custom, Barrett logo Solo cups lately ??? LOL

 

[OntarioVanMan]

That Was quite the penny Dave! Yes some of these very same carriers are partly to blame in the name of profit. the alliance/sylectus . Allowed many a shady character access to their load board ...there were very little checks and balances in the system. And now we have this mess!

 

[usafk9]

I was right with you Mike on rogue drivers until this ending.


It is awesome that you and several others take that approach but I don't think that represents the majority of the transportation industry. Why? Because many are looking for drivers to fill seats and have a clean or a no experience record and have passable DOT health. That is much different than a good driver. It is all about whether they are a risk on paper. A walk through many truck stops provides that confirmation. I am amazed how many leave just on the sleep apnea stuff alone. But I digress.

I will touch where other won't.
Carriers are their own worst enemy in many cases. Over the years with buyouts/takeovers and companies trying to maintain profits of the past, they cut rates to compete and try to make it up through their contractors. See it all over the place. Rate cuts to drivers, manipulation of FSC, manipulation/shortage of mileage, insurance, detention time, fees galore, fuel purchase kickbacks, and I could go on.
This all in conjunction with CSA regs, rising operating costs, is slowly dropping the quality of drivers. No reason to sugar coat anything.
We are all in a industry that is operating on rates from years ago and with minimum cushion and many are totally clueless as to their operating costs or lack business acumen and this is what we get. The good ones either leave to only be quickly replaced, or they become your competition often doing their gig cheaper because they don't have the overhead and are willing to cut corners to gain market share. They also have access to the same information systems that were once proprietary.
My hope is a new breed of companies or management at existing carriers share yours and other thoughts. There are some great carriers make no mistake. But there are some that are driven by profit only, and little else. Many of those drive the market and make it tough on everyone else. Little will change until the industry as a whole gets a little honest with itself.

There is my penny in the pond.

Perfectly put.

 

[davekc]

That Was quite the penny Dave! Yes some of these very same carriers are partly to blame in the name of profit. the alliance/sylectus . Allowed many a shady character access to their load board ...there were very little checks and balances in the system. And now we have this mess!

I think it is a combination of many things and your example fits right in there. When you look at all this stuff and lack of transparency from many nameless carriers, we just can't be shocked at where parts of the industry are at. A trip through the EO or transportation archives have talked about much of this for years.
Sins of the past are what drives much of what we see now.

 

[FlyingVan]

Re: Saying "no" to cheap freight!!

I always say 'no' to cheap freight. The problem is that my cheap freight is not the same with other's cheap freight.