What Would You Do?

[ATeam]

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!

There's no telling what a given expediter might do when presented with a load offer or relocation decision. All sorts of variables enter in, including bad judgement, errant perceptions, the expediter's vaules and priorities, one's business goals, etc. In your hypothetical scenario, an expediter may do one thing this week and if he or she finds one's self in the exact same location and situation a week or two later may do the other thing.

When faced with uncertainties similar to those you describe above, I find it helpful to ask, "What is the single best thing I can do this instant to move me closer to achieving my goals?"

 

[PreacherRich]

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.

Don't misunderstand, CPM is very important. 10 cents on a 100,000 miles is $10,000 so it is a huge thing through the coarse of the year. But on a Friday afternoon load offer, this is a gravy load, for me anyway. I have never deadheaded 600 miles to get a load but after thinking about it, I think I would depending on the day of the week. Turn it down on Monday be excited about it on Friday.

(If your only netting $480 on a paid for sprinter on that load you may want to upgrade to a cargo van!)

 

[zorry]

Another variable...he's in a van.
No logbook. With a logbook you are somewhat limited by hours. You don't want to waste them breaking even.
Also, the 600 d/h 1500 loaded confuses me. 1500 d/h and 600 loaded costs me the same.
In a van there may be a cost savings between loaded and empty. It's not noticable in my D.

 

[OntarioVanMan]

I don't know where Turtle is getting his $480 from....400 for fuel another 300 for maintenance fund...then another bit for operating expenses...I am still at the 40% margin...

 

[OntarioVanMan]

Another variable...he's in a van.
No logbook. With a logbook you are somewhat limited by hours. You don't want to waste them breaking even.
Also, the 600 d/h 1500 loaded confuses me. 1500 d/h and 600 loaded costs me the same.
In a van there may be a cost savings between loaded and empty. It's not noticable in my D.

Zorry....It costs the same to run a van empty or loaded....difference is no log book, and fuel mileage....

 

[zorry]

Thought some number cruncher would say my fuel costs are .0275 cents cheaper when running empty.

 

[Ragman]

we can all go for a jump in the lake.....

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

 

[Turtle]

(If your only netting $480 on a paid for sprinter on that load you may want to upgrade to a cargo van!)

45 cents a mile is a ballpark common CPM for a Sprinter. 2100 x .45 = $955, leaving $545. Regardless, the Rule of Thirds still apply, and a third of $1500 is $500. So most are going to net between $450 and $550. Newbies need to be aware of stuff like that.

 

[OntarioVanMan]

Thought some number cruncher would say my fuel costs are .0275 cents cheaper when running empty.

I still can get 23 mpg with a 1,000 lb load or empty....

A 2100 mile load for a solo would take a while IF run legally as well....and a low paying run for a team would take a chunk out of your 70 ...maybe causing a reset condition, hence the chance of losing a good paying load at the end of the cycle.....so many variables

 

[OntarioVanMan]

45 cents a mile is a ballpark common CPM for a Sprinter. 2100 x .45 = $955, leaving $545. Regardless, the Rule of Thirds still apply, and a third of $1500 is $500. So most are going to net between $450 and $550. Newbies need to be aware of stuff like that.

considering is situation....netting AFTER ALL expenses $500 CLEAR isn't that bad...

 

[CharlesD]

I would take that load. Then, when I'm about 40 miles from the pickup the phone would ring, "Sorry, that load just cancelled."

Along those lines, I would ask if it's picking up at UPS because of the high probability of those canceling, and then I'd tell them up front that I'm expecting a healthy dry run amount if it does cancel.

From the dispatch side of things, if your carrier is getting enough to pay the contractor $1 a mile on a van load, chances are that's probably not a bid board load, there's no competition in the area it's picking up in, or the carrier isn't making any kind of decent profit on the load. If it's the second situation, there's a chance to get some extra money on the load to cover the deadhead anyway, which makes that load a no brainier. A few weeks ago I got a straight truck rate on a van load because our straight truck was the only available unit in the area.

 

[xiggi]

Stop thinking so hard. Once again it isnt rocket science.

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[Turtle]

considering is situation....netting AFTER ALL expenses $500 CLEAR isn't that bad...

No, it's not. Especially to get out of nowhere, middle of. But it's not really the grand it might seem on the surface. That's all I'm saying.

As far as rocket science, "It's not rocket science" has been the biggest cause of have-van-will-travel crowd failures in this business.

 

[Steady Eddie]

Stop thinking so hard. Once again it isnt rocket science.

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Yep, the OP gave the details of the run. So many are reading more into it than needs be. In this case lol, it is what it is. Take it or leave it was the question, based on DH and rate and loaded miles and back to the land of the living.

 

[Rocketman]

There is one consideration that I look at that I have seen mentioned here. If Im in the middle of no where, chances are that I knew it going in. Hopefully, I got some extra money up front or it was a nice long load at a good rate.

In the situation described, I will almost always include my last run into the overall average. If I can put the 2 runs together and find an avg that Im satisfied with, I'll run it.

If I had to consider this load...solely on its own merits, I would probably still take it. If you have messed up and find yourself in a hopelessly poor freight area, you can sit on that egg as long as you like....it aint likely to hatch. Get what ya can and get gone.

Ive not been in a van very long, but I'll say that agree with Turtle's numbers more so than the others. Dont cut the cost per mile short to justify a load. That is a slippery slope that will get you in trouble. It costs us more than fuel money to operate and those who loo past that fact are the guys sitting at home wondering how they went broke. With that said....I would have made the $500 (or whatever it calculates out to) and rolled.

Ive had two really good weeks so far this year. The first one, I took on a 500 mile dh in the middle of the week. I had asked for a little bit of money up front on the previous load, but mainly, I knew that my chances were good to have a great week if I did the 500 dh...and it worked. My "all miles" number for the week was just a few pennies over my target...but it was over.

The second great week Ive had started with a load almost identical to the one in the op. It was 500 dh for a 1500 mile load. The only difference was that it paid really good...even for all miles. It was a no brainer.

 

[xiggi]

No, it's not. Especially to get out of nowhere, middle of. But it's not really the grand it might seem on the surface. That's all I'm saying.

As far as rocket science, "It's not rocket science" has been the biggest cause of have-van-will-travel crowd failures in this business.

And overthinking has caused others to fail.

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[blizzard2014]

I used to jump all over those loads with massive deadhead because when you can bid on your own freight it opens up more options to you. That all ended the time I deadheaded from Los Angeles to Salt Lake City Utah for a load headed back to California and it cancelled. I will only deadhead for a load if it is on they way to a good area from a bad area. Like the time I deadheaded from Laredo to Alabaster Alabama over a holiday weekend to pick up a load headed to Detroit.

Also, Turtle is right about the maintenance that needs to be calculated into the rate per mile. You also need to have a vehicle replacement fund. A lot og guys "myself included" just run around all over the place making money but fail to plan for catastrophic events. I save all of my money in the bank which is why I've survived 1 Reposession, 1 Complete Engine Failure, and now some health issues. There are way too many vanners living on the edge out there. A mere transmission breakdown can just put a lot of guys out of business.

I always like to have 15 grand on hand to cover every possible scneario. Five grand for operating money (I like to have enough money to pay for fuel, food, and oil changes for an entire month before I even see one company paycheck) Five grand for breakdown (so if the tranny goes, I can just get a room and slap down 2-3 grand and get the job done) and another Five grand for vehicle replacement! If you have less than that, or have to use a credit card to cover even some of that, you are most certainly under-capitalized. I have to admit that I myself am a bit undercapitalized right now. The only thing I have going for myself is that I've replaced almost every part that can break in my van!

I think a lot of new people fall into the trap of running loads, deducting fuel, and then thinking that is the entire profit. This can also happen if you are running in a newer vehicle and quite possibly haven't had anything major go wrong becuse the truck is new, or because the 100k warrantee covers the cost of repairs. There are a lot of components that need to be replaced on a van at the 250k mile mark. There are also a lot of things that can take you off the road for 2-3 weeks at a time: a deer hit, black ice, a tire blowout, engine failure, or personal injury. There are a lot of variables in this job.

But with all that being said I have come out on the road with a van and 250 dollars 3 times in 5 years and I have built that back up to,10k in the bank one year,and 14k in the bank another year. Mind you I was very lucky that a deer hit, black ice, or component failure did not happen to m withhe first day, week, or month. But your situation might not be the same as mine! So be mindful of all of the nasty stuff that can happen to you and knock you right out of the business.

 

[Turtle]

And overthinking has caused others to fail.

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I've never really heard of that happening, but I'm sure it's possible.

 

[LDB]

Some or all of this is covered in various places but here's my comments anyway.

What time Friday afternoon? If it's 13:00 I may think differently than if it's 18:00 but both are "afternoon".

What was the job that got me there? I'm probably going to look at the combination of the two in making my decision. Some will disagree and some will agree with doing that I suspect.

Along with 135 gallons of fuel (supply your own number of gallons, I just used a reasonable gasoline number) you've also got to alot for oil, tires, belts, hoses, bulbs etc. etc. as well.

I agree it's around $500 fuel, $500 other expenses and $500 pocketable.

I would probably take it based on the job that took me to nowhereville that I wouldn't have taken unless it was better than average. I'd have gone there anticipating and prepared for a job like this one as the getting out option.

 

[jrcarroll]

Not even going to think about it. I'll take it and run. been there, done that.