Time to be the dart board!

[OntarioVanMan]

So straight trucks take about 50% or more to run then a CV and they get less then $2. a mile to run or they are running and doing ok at 2 bucks.....and we have some CV's think they should be making more then $1.00.....I don't get it....in proportion a CV, taking costs and everything being should be ok at about .80 a mile....

If you cost per mile is only .30 then at .90 your are making a 200% profit over your costs?

ok toss away.....

This is just for discussion purposes....not necessarily my opinion!

 

[OntarioVanMan]

.....................

 

[xiggi]

Mr consistent you are not.

 

[jjoerger]

Straight trucks do not average $2 all miles. More like $1.50 or less with current FSC.

 

[crich]

if sure is a big word and depends on things falling into place day after day.

if fuel was constant, if my insurance cost did not go up every year, if my van never needed repair. if I never have a cargo claims or accident and if I don't take a paycheck based on hours away from home. if

 

[OntarioVanMan]

Mr consistent you are not.

Nope..you are correct.....everyone is entitled to have a change of mind...?? errr course correction...

 

[OntarioVanMan]

Straight trucks do not average $2 all miles. More like $1.50 or less with current FSC.

so CV's are an easy 50% less cost to manage.....that would make a .75 a mile to .80 an appropriate figure?.....

 

[OntarioVanMan]

if sure is a big word and depends on things falling into place day after day.

if fuel was constant, if my insurance cost did not go up every year, if my van never needed repair. if I never have a cargo claims or accident and if I don't take a paycheck based on hours away from home. if

Try a Taxi owner operator where the city dictates the rate of pay....and you either live with it or move on.....again ones own freedom of choice....

 

[xiggi]

What your op leaves out of the equation. Is a st drivers time away from home worth more than a van drivers, does health insurance cost less, does food cost less? Vehicle cost is only a part of the puzzle. Part of the problem is many out here don't understand their true costs and place no value on their time or the impact of this job on their overall quality of life.

 

[scottm4211]

Ken you're the first one to say we are all independent and should run for what we choose. Now you say you "don't get it"?
You've chosen to run for a carrier at a lower rate in order to stay "busier". That doesn't mean that's the right or wrong way. It's your way. I tried that last year and knew after six weeks it wasn't for me. But that's me.

P.S.: I enjoyed our talk in Alabama a couple weeks ago.

 

[OntarioVanMan]

What your op leaves out of the equation. Is a st drivers time away from home worth more than a van drivers, does health insurance cost less, does food cost less? Vehicle cost is only a part of the puzzle. Part of the problem is many out here don't understand their true costs and place no value on their time or the impact of this job on their overall quality of life.

all very good points.......

 

[OntarioVanMan]

Ken you're the first one to say we are all independent and should run for what we choose. Now you say you "don't get it"?
You've chosen to run for a carrier at a lower rate in order to stay "busier". That doesn't mean that's the right or wrong way. It's your way. I tried that last year and knew after six weeks it wasn't for me. But that's me.

P.S.: I enjoyed our talk in Alabama a couple weeks ago.

Thanks for pointing that out....it was my first draft and first coffee....LOL

it was a great talk.....

 

[crich]

Try a Taxi owner operator where the city dictates the rate of pay....and you either live with it or move on.....again ones own freedom of choice....

if I could find owner ops based in the right areas that only wanted to run up to 100 miles a day I could pay $200 per day and still cover insurance and my cost of operation. why do you want to let the pimps keep all the cash? it only gets down to .80 per mile after 2 or 3 pimps join forces. but what do I know. congrats if you are happy. I wouldn't ever be a cab driver props to anyone that can. when I started in 98 fuel was cheaper than it is now, insurance was also, well everything was cheaper. and the pimps paid more back then. what about the cost of living why would anyone continue to bend over and take it for less?

 

[OntarioVanMan]

if I could find owner ops based in the right areas that only wanted to run up to 100 miles a day I could pay $200 per day and still cover insurance and my cost of operation. why do you want to let the pimps keep all the cash? it only gets down to .80 per mile after 2 or 3 pimps join forces. but what do I know. congrats if you are happy. I wouldn't ever be a cab driver props to anyone that can. when I started in 98 fuel was cheaper than it is now, insurance was also, well everything was cheaper. and the pimps paid more back then. what about the cost of living why would anyone continue to bend over and take it for less?

that is exactly what we are discussing..... the pros and cons....

IM thinking not everyone can be lumped into the same pile.....everyone has their own as Xiggi pointed out.... CPM.....and to me that is the bargaining chip....IF someones has a really low CPM.....they can run at say .80 and still NET the same amount as someone with a higher CPM. just common cents....put another way if ones CPM is .25 and someone elses is .40 .....the 25 operator can do a load .15 cheaper and make equal to the .40 operator.....think thats called business and using that advantage to profit!

 

[SWTexas1]

that is exactly what we are discussing..... the pros and cons....

IM thinking not everyone can be lumped into the same pile.....everyone has their own as Xiggi pointed out.... CPM.....and to me that is the bargaining chip....IF someones has a really low CPM.....they can run at say .80 and still NET the same amount as someone with a higher CPM. just common cents....put another way if ones CPM is .25 and someone elses is .40 .....the 25 operator can do a load .15 cheaper and make equal to the .40 operator.....think thats called business and using that advantage to profit!

But as everyone plays how low can you go, we all lose in the end. The general rate that everyone used to run for has fallen 35 to 40 cpm in just the last few years.
In an industry where it harder everyday to make ends meet, playing low ball for even a short period of time just doesn't make sense to me.

 

[xiggi]

Someone is always ready to take a load cheaper than the next guy.... because. It's damaging to the industry as a whole.

 

[Murraycroexp]

Correct Xiggi, the industry IS damaged. Even in our business model, we lose dozens and dozens of bids every day. We are not the lowest bidder almost every time.
It used to be a matter of losing bids because "someone bid at backhaul rate to get home". Now with soooo many trucks sitting out there it seems way too many loads go "for backhaul rate". And that backhaul rate has even dropped.
MEM, ATL, Dallas & even SW Ohio (our general home area) used to be really good for us. No more.
"The market" determines rates.
"The market" is basically when the broker uses the lowest bidder's truck.
Most brokers usually go with the absolute lowest rate, unfortunately.
Even the ones that profess to "say no to cheap freight". Couple that with brokers that will broker loads out before even using their own trucks to clear a few more dollars and here we are..........
........with a damaged industry.

 

[Turtle]

...put another way if ones CPM is .25 and someone elses is .40 .....the 25 operator can do a load .15 cheaper and make equal to the .40 operator.....think thats called business and using that advantage to profit!

It's not really using that advantage to profit, it's merely running cheaper. Using that 15 cent advantage to profit would be running the load for 15 cents more and pocketing the 15 cents instead of leaving it on the table for someone else (broker, carrier, customer) to have.

 

[OntarioVanMan]

It's not really using that advantage to profit, it's merely running cheaper. Using that 15 cent advantage to profit would be running the load for 15 cents more and pocketing the 15 cents instead of leaving it on the table for someone else (broker, carrier, customer) to have.

So to spite that broker, shipper whom ever you'd sit there for 3 more days incurring costs just so you can keep that .15 cents?

another poke: a fleet of vans comes out and they get 50 mpg... You think they will really sit there and not be competitive?

Ken all I am trying to point at is the competitive nature and the supply and demand issue.
I know its touchy when one has a higher cost to do the same business then the next guy..., and lower pricing threatens his way of life.... They tend to get defensive and that's ok quite natural

 

[OntarioVanMan]

Another example :
2 stores side by side but straddling the border of states... 1 has higher state business taxes and a higher minimum wage so .... One either has to drop his prices to compete or move from area across state line! Or find a supplier with cheaper prices.