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What Would You Do?

PreacherRich

PreacherRich

Seasoned Expediter
Ok here is the scenario.

It is Friday afternoon you are sitting in middle of nowhereville, in your cargo van. You know you may be stuck there for the weekend.

Your dispatcher calls, and says they have an opportunity for a load. Picks up Saturday, 600 miles away, 1500 mile run delivers Monday at a dollar a loaded mile. $1500. Puts you in a good freight area. Do you take it or leave it?

Ok, I know that many of you who work for some companies get paid deadhead or a higher rate and so on. Many companies would not even look at this load as an option for their drivers. Just play along.... This is the offer, 1500 all in, what do you do?

For me, this would be an easy decision. For others I have talked to, not so much.
 
zorry

zorry

Veteran Expediter
2100 miles for 1500 miles ? There's nothing to think about. I'd enjoy my weekend off.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
PreacherRich said:
Ok here is the scenario.

It is Friday afternoon you are sitting in middle of nowhereville, in your cargo van. You know you may be stuck there for the weekend.

Your dispatcher calls, and says they have an opportunity for a load. Picks up Saturday, 600 miles away, 1500 mile run delivers Monday at a dollar a loaded mile. $1500. Puts you in a good freight area. Do you take it or leave it?

Ok, I know that many of you who work for some companies get paid deadhead or a higher rate and so on. Many companies would not even look at this load as an option for their drivers. Just play along.... This is the offer, 1500 all in, what do you do?

For me, this would be an easy decision. For others I have talked to, not so much.
Click to expand...

What van do you drive? MPG? is it paid for?....otherwards your CPM is?.....

It works out to .71 ALL miles....
 
U

usafk9

Veteran Expediter
I'd say it depends.

You say nowhere ville. What's the likelihood any of your carriers gets you out of said town on Monday? If it's good, and you'll get a decent rate for all miles, then I'd follow Zorry's advice.

If you're going to have to deadhead to get to a better area anyhow, then get rolling. Weekend's the best time to do that, IMHO.
 
ATeam

ATeam

Senior Member
Retired Expediter
Assuming that $0.71 per mile is in the ballpark of a breakeven rate for a van, the case for either decision could be made. A) Drive at breakeven over the weekend when freight prospects are poor to be positioned in a good freight area on Monday morning. B) Stay put and hope for a better paying load on Monday.

Part of the decision would be, what else can you do with the time if you lay over? How valuable is your time? How much does it cost to sit? What can you do with that time that might generate other revenue or enhance your expedite business?

Personally, if I could not put the spare time to good use and did not need a rest break, I'd take the load. Doing so keeps the money flowing, positions you well on Monday morning, and, by moving you out of a bad freight area, reduces the risk that you will be stuck sitting on Monday too.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Agreed..the OP got himself into a pickle in the first place by going to "nowheresville"...and now to get out is another issue....I see this so many times....the "Now What Syndrome"

if you are going to have to DH a couple hundred miles outta there anyhow on your own dime....that .71 gets better...
 
Steady Eddie

Steady Eddie

Veteran Expediter
Owner/Operator
Lets see. Middle of nowhere, deadhead out of middle of nowhere to get back in the lanes for zero rate. Or get the 1500 bucks to get back in the freight lanes. Some will say NO to the cheap freight, then say " I'll show'em, I'll deadhead out of here. About 1,000 miles on your dime, you just may find yourself thinking, I should've taken the run......
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Steady Eddie said:
Lets see. Middle of nowhere, deadhead out of middle of nowhere to get back in the lanes for zero rate. Or get the 1500 bucks to get back in the freight lanes. Some will say NO to the cheap freight, then say " I'll show'em, I'll deadhead out of here. About 1,000 miles on your dime, you just may find yourself thinking, I should've taken the run......
Click to expand...

Exactly Edster....:)
 
Steady Eddie

Steady Eddie

Veteran Expediter
Owner/Operator
Or. The next time you see me at a truck stop. Please hand over $1,500.00 to me. If you didn't take the run, it's like the same thing.....<note: no Thingee!
 
xiggi

xiggi

Veteran Expediter
Owner/Operator
Van, bad area to good area, paid to get there. Jump on it!

Sent from my SPH-D710 using EO Forums
 
Turtle

Turtle

Administrator
Staff member
Retired Expediter
I would take that load. Then, when I'm about 40 miles from the pickup the phone would ring, "Sorry, that load just cancelled."
 
zorry

zorry

Veteran Expediter
He said he MAY be stuck for the weekend.
That alludes to the prospect of frieght.
Also,good chance he's alone in the middle of nowhere which gives him bargining power if he's got the gonads.
I'm surprized at how eager people are to run at break even.
If they needed you to dh 600 miles to get to load I would have asked for help on the rate.
Am I wrong with thinking it's easier to let a carrier break even in this situation ?
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
zorry said:
He said he MAY be stuck for the weekend.
That alludes to the prospect of frieght.
Also,good chance he's alone in the middle of nowhere which gives him bargining power if he's got the gonads.
I'm surprized at how eager people are to run at break even.
If they needed you to dh 600 miles to get to load I would have asked for help on the rate.
Am I wrong with thinking it's easier to let a carrier break even in this situation ?
Click to expand...

"break even" we don't know what his break even point is....I would make about a 40% profit at .71 a mile....
 
xiggi

xiggi

Veteran Expediter
Owner/Operator
71 cents in a van is most likely better than break enen. You have a low possibility for something else, deadhead out or 71 cents. Not a hard decision at all.

Sent from my SPH-D710 using EO Forums
 
U

usafk9

Veteran Expediter
Again, I'd say it depends.....on the carrier (or carriers, in his situation). That, in itself, lends a lot of variables. I know nothing about his arrangements, but a few phone calls would decide it for me. Do any of them have any success getting out of that area?

Where are you, Preacher?
 
PreacherRich

PreacherRich

Seasoned Expediter
Ok, it would be a huge mistake to turn down this load, imo.

Let's say there is a 75% chance of not getting a load out until Monday.

If I take this load, I am going to spend about $450 in fuel on the 2100 miles. That leaves $1050 real cash left and I am probably saving at least a night in a hotel.

So sit around for a couple all night movie marathons or put a grand in the bank. To me, if I am waking up in the morning and my wife is not with me, I have an obligation to be a productive as possible. To me it is not a matter what is my cpm is how far I deadhead. It is a matter of being as productive as possibe while away from home. Unless I really need a break or have family or friends in the area, I am running this load and smiling while I do it. Easy decision
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
All that really matters is that you are ok with it.....

we can all go for a jump in the lake.....LOL....have a safe trip...:)
 
PreacherRich

PreacherRich

Seasoned Expediter
usafk9 said:
Again, I'd say it depends.....on the carrier (or carriers, in his situation). That, in itself, lends a lot of variables. I know nothing about his arrangements, but a few phone calls would decide it for me. Do any of them have any success getting out of that area?

Where are you, Preacher?
Click to expand...

This is a theoretical scenario and just wondering what everyones thoughts were. I have a couple friends who would turn this load down just because of the 600 miles of deadhead. Not me, not on a weekend!

I am in Laredo right now.
 
Turtle

Turtle

Administrator
Staff member
Retired Expediter
Dismissing your CPM as irrelevant is what enables you to delude yourself into thinking you have $1050 real cash left. A lot of people believe that deadhead doesn't matter, all that matters is getting that next load, racking up that revenue. If you rack up high revenue but your real, actual costs take too big a bite out of it, then you're not being very productive at all. With a paid-for Sprinter on that load, you're probably netting about $480. That's not chump change, but it ain't exactly a grand, either.

I say this not to you as much as to newbies who don't realize just how important their CPM is, and the impact that deadhead has on the bottom line.
 
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