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Results 1 to 11 of 11

Thread: Here's how we set the rates

  1. #1
    allan5oh is offline Senior Board Member
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    jackassville (winnipeg, mb)
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    Default Here's how we set the rates

    t's a simple little exercise.

    First, we add up our costs(both variable and fixed). Always round UP.

    Second, we add in any possible future capital costs. If your truck needs replacing soon, or your engine needs rebuilding, add that up as well. Also consider if you want to expand your business.

    Third, add up expected profit. This can be either per mile or per month. I prefer per month.

    Add all these 3 numbers up, and divide by how many miles you do in a month, but never overestimate your miles. Always round down how many miles you do. If you average 10,000 miles a month, use 8,000 or 9,000.

    That magical little number is what you need to average for ALL MILES. No not just paid miles. If you cannot average that number, don't worry there is a back up plan.

    Take your Peterbilt with 120" bunk, with the title in the globe box, and park it in the backyard with flowers in the 5th wheel.

    People on here keep talking about cutting each others throats. Either your for it or against it. I'm definitely for cutting other peoples throats. If I can make a good profit on a load, I will haul it for cheaper then you will. What I will never do is cut my own throat. There's a huge difference.

    Notice no collusion? We didn't do this together. Everyone's numbers are different. My expected profit is much larger then the "average" published by ATBS. Those guys might as well be company drivers. Pathetic numbers.

    We also didn't need the governments help either. No regulation. Simple math.

  2. #2
    solo379's Avatar
    solo379 is offline Senior Board Member
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    Smile

    Quote Originally Posted by allan5oh View Post
    I'm definitely for cutting other peoples throats. If I can make a good profit on a load, I will haul it for cheaper then you will. What I will never do is cut my own throat. There's a huge difference.
    Ever heard of "snow boll"?
    Pessimist,- is just well informed optimist!

  3. #3
    allan5oh is offline Senior Board Member
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    Default

    No????

  4. #4
    solo379's Avatar
    solo379 is offline Senior Board Member
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    Default

    Quote Originally Posted by allan5oh View Post
    No????
    It starts very small and reasonable, but while it's going down the hill, it's getting bigger and bigger....and you can't control it anymore. May even create an avalanche, which buried you...
    Pessimist,- is just well informed optimist!

  5. #5
    Cluggy619's Avatar
    Cluggy619 is offline Senior Board Member
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    Default

    Quote Originally Posted by solo379 View Post
    It starts very small and reasonable, but while it's going down the hill, it's getting bigger and bigger....and you can't control it anymore. May even create an avalanche, which buried you...
    And the point is?

    This is a capitalistic country. Competition is the name of the game, but not by cutting your own throat in the process.

    And let's face it. He didn't say he was cheaper than everyone else, but he could be cheaper than you. Someone down the line will be cheaper still.

    You get what you pay for. That's what is used to sell your services.

    But always make a profit, or get in line for a government bailout.

    Of course, that's just my .02 cents....
    Deja moo. It's when you feel you have heard this BS before.




  6. #6
    solo379's Avatar
    solo379 is offline Senior Board Member
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    Default

    Quote Originally Posted by Josborn View Post
    And the point is?

    This is a capitalistic country. Competition is the name of the game, but not by cutting your own throat in the process.
    And that was exactly my point. You might just do it in a process. It's very easy, to come down, not so easy to come up. I'm all for competition, but "throat cutting" looks more like the war for monopoly to me...
    Pessimist,- is just well informed optimist!

  7. #7
    Rev.Vassago's Avatar
    Rev.Vassago is offline Guest Board Icon
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    Default

    Quote Originally Posted by allan5oh View Post
    My expected profit is much larger then the "average" published by ATBS.
    ATBS is a joke, and a sorry excuse for an accounting firm.

  8. #8
    no_worries is offline Senior Board Member
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    Apr 2006
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    Default

    Quote Originally Posted by allan5oh View Post
    t's a simple little exercise.

    First, we add up our costs(both variable and fixed). Always round UP.

    Second, we add in any possible future capital costs. If your truck needs replacing soon, or your engine needs rebuilding, add that up as well. Also consider if you want to expand your business.

    Third, add up expected profit. This can be either per mile or per month. I prefer per month.

    Add all these 3 numbers up, and divide by how many miles you do in a month, but never overestimate your miles. Always round down how many miles you do. If you average 10,000 miles a month, use 8,000 or 9,000.

    That magical little number is what you need to average for ALL MILES. No not just paid miles. If you cannot average that number, don't worry there is a back up plan.

    Take your Peterbilt with 120" bunk, with the title in the globe box, and park it in the backyard with flowers in the 5th wheel.

    People on here keep talking about cutting each others throats. Either your for it or against it. I'm definitely for cutting other peoples throats. If I can make a good profit on a load, I will haul it for cheaper then you will. What I will never do is cut my own throat. There's a huge difference.

    Notice no collusion? We didn't do this together. Everyone's numbers are different. My expected profit is much larger then the "average" published by ATBS. Those guys might as well be company drivers. Pathetic numbers.

    We also didn't need the governments help either. No regulation. Simple math.
    I thought you were always a lease-op, are you running your own authority now?

  9. #9
    Heavy Duty is offline Board Regular
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    Sep 2007
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    Default

    Setting your rates is easy, any way you want to, the hard part is finding a customer that will pay them.

  10. #10
    allan5oh is offline Senior Board Member
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    jackassville (winnipeg, mb)
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    Default

    Quote Originally Posted by no_worries View Post
    I thought you were always a lease-op, are you running your own authority now?
    Nope!

    Heavy Duty is dead right though. If my company came to me and offered a lowball rate, the key doesn't turn to the right.

  11. #11
    no_worries is offline Senior Board Member
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    Apr 2006
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    Default

    So you hooked up with a percentage outfit? I see you switched to open equipment. How's it all working out compared to the old dry box gig?

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