Sorry Cam, it was late and I'd just finished some reports so I was a little negligent in my post :lol: I just assumed that by replying the way I did I was granting your point that we are, of course, subject to market forces. In some respects trucking comes closer to perfect competition than many other industries; homogeneous product, little barrier to entry, many producers and consumers, etc.

I didn't mean to imply that predatory pricing was occurring, only that the effect is basically the same. As you know, in a perfect market, normal profit is all that can be attained. Normal profit takes all economic costs into consideration. Basically, what I've been arguing all along through multiple posts is that many, if not most, operators do not properly account for all their costs and therefore have a flawed view of their profitability...economic as opposed to accounting, which, as we both know, is the true measure of profits :lol:

 

I have my own authority and like GMAN have a minimum that I will run for and it's not even close to a $1.15. I don't sit but I plan my loads and I hustle to find a good paying load. I check before accepting loads to an area. I look at what the truck/load ratio is. If there are more trucks in the area than loads then I pass on the load. I've been doing this for a year now and have tried various strategic options and this by far has been the one that is working the best for profit.

I also subscribe to 3 load boards and have 3 shippers but these shippers don't always have frieght year round. I post my truck and the phone rings constantly. What a good feeling

 

Steve, I think one of the most important things we can pass on to our children is a good work ethic.

Pepe, you will learn to negotiate rates with experience. Most of them have more money than they originally offer. To give you an example, some may start the week offering a load for $500. If it doesn't move they may add $50/day until it does. If it hasn't moved by Friday, they may offer $800 for the same load. If they are really desperate they may just ask you for a rate. You see, some brokers will agree to move say 100 loads for a shipper. They will agree to do this for a certain amount of money. Let's just say they agree to move them for $2/mile. The $2 is what they get, not what they pay the truck. They may also have to pay a penalty for any loads which they cannot move. When they first start the week, they may offer $1.20/mile. They may start moving loads at that rate, but continue to raise the rates each day until all loads are booked. By the end of the week, they may be paying $1.80 or even more to keep their account happy. They keep the difference between what they agreed to take the load for from the shipper and what they pay the truck. As a way of making more money they may offer a Quick Pay with a 5% penalty. They may have already been paid by the shipper. In the case of military loads, they are normally paid in a couple of days, as I recall. That doesn't mean that they will pay the carrier that quickly, but they will have gotten their money within that time frame. They will sometimes use the money or charge the carrier for quick pay and make more money. Then there are brokers who will book freight for a flat rate. I know a broker in Texas who used to book freight and keep 10% for himself. The last time I spoke with him he had gone up to 15%. The rest he gives to the truck. No games. I currently have another broker who takes 10%. He pays me as soon as I hand him the bills. All of his loads pay me over $2/mile. I have also dealt with brokers who may take 15% off the top. Some are honest, others are not. Most brokers will not tell you what they receive on a load for the reasons I noted above.

 

Which is a fine way to do it as long as the inquiring O/O knows that those figures are for loaded miles only and that no deadhead or personal miles are included agreed?

I feel that some people like to give inflated numbers or not the whole picture just to make themselves feel/look better in thier peers eyes.Not saying you are or aren't just posting what I see on this and other boards.

 

Ah, it's just fun to throw around academic terms like 'predatory pricing' with someone who speaks the language? See, little did I know that someday I'd been on a message board and a term like that could turn the conversation and thus shape my entire future.... :shock: :lol: :lol:

 

granting your point that we are, of course, subject to market forces.
What?

many other industries; homogeneous product,
What?

little barrier to entry
What?

many producers and consumers, etc.
What?

market, normal profit is all that can be attained
What?

flawed view of their profitability...economic as opposed to accounting,
What?

academic terms like 'predatory pricing'
What?


Use guys r wicked smart bekuse eye have no eye dear wat ur talkng a boat.

 

why so you can make the rest of us sound stupid......

 

Wow! This topick really took off, while i was moving "cheap", and not so "cheap" freight! :lol:
But don't you all think, that before arguing, we have to agree on terminology?
What is "cheap"? Is it amount of money per mile? Than what is it? :roll:

Personally, i believe, "cheap";-is below fair market price. Even those "magic"
$2.00 a mile, could be "cheap", at the same time, $1.20 a mile, could be a fair deal!:wink:

 

Uuuuw Im a, 'preditor' now, that sounds cooler then just a D.F. that needs to get more clarification about the load he just booked lol

Well obviously tho Im new at this, n I know I sound green on the phone, trying to negotiate over the phone with them....I bet they think, mmmm I just hooked a real sucker.

Just wondering tho, why the hell these brokers would even bother with 1.00-1.15 grossed out loads.....if I was a new broker I wouldnt even bother to try, but still the boards are full of them....um just cuz they think they can move it....right?....or as you said they promised to move so many huh G-man, and this was one of them?

Hmmm tho when I did the math was considering that guys $500 a month plan. Lets say i ran appx 2,000 miles a week, i was getting appx 1.20 a mile.....n this guy could get me 1.50 stealing better freight from Joym.....er...ah.. forget that part....lets just say he gets 1.50.....hmmm 30 cents more times 2,000 miles; 600 a week times four has me scratching my head and considering it.

 

I'm think about two answers so you pick the one you like:

1) you don't need my help :P

2) academic terms take a lot of thought and condense it down into relatively short words so that you can have deeper, more incisive conversations without having to write a book each time. Only trick is, both parties have to be familar with those terms.

Whatcha think, Mike? Probably 2), huh? :lol: