Merrick,

IMO,"what you need", has nothing at all to do with rates in that area. What you need is what you need.

When they ask me what I need, The formula I use is:

[(DH miles to P/U + loaded miles + antcipated DH miles to next P/U) x my cost per mile] + $500/day that I'm under the load.

i.e. on a 500 mile trip with 100 miles DH to p/U and 75 miles DH to next anticipated P/U, I would need:
[(100 + 500 + 75) x $1.70] + $500 = $1650 or $3.30/loaded mile.

Probably would not get that load because my cost per mile is too high for that many dead miles....but you never know.

 

Rank I understand what your saying but market force still has to come into to it. Take two trucks, one payed off and another with a massive payment all spec'ed out etc, well they "need" different amounts but the market dictates the rate. Now that I think of it, and I am very tired right now and probably not thinking clear, but a Subway sandwhich (which I eat but I hate with a passion) cost close to the same everywhere but imagine the different monthly leases that each store needs to cover.

You know what was strange, I put in dry by accident instead of reefer from Michigan to Montana and dry had a higher rate. I would think a reefer always gets a higher rate.

Also I forgot to mention something else while I was updating the above posts. Right as I got the truck out of the shop I get a letter from the insurance company telling me they are cancelling me. They said as I am hauling produce I am too much of a risk (don't even have 2 years on my license). I called the agent and the owner of the agency got involved and resolved the situation for me. Nice guy too. Almost out of business for a while there.

By the way, I have my new fifth wheel but I still feel some slack when I'm pulling. How much should I be feeling?

 

 

I know Sonny. Still working on that list you gave me. Actually I will call them this week.

By the way, all those brokers I spoke to the other day all asked where I'd like to go. I kept using that line I read around here somewhere "I am more motivated by rate than by geographics" I must say I actually enjoyed it on the phone.

 

Market forces don't have any bearing on what you need.
They have a bearing on what you will get.

Just follow Mick's advice on this. "You can't always get what you want, but if you try sometimes you might get what you NEED".

 

When you post your truck you may want to post for reefer and van loads. It will offer greater possibilities. The nice thing about a reefer is that you can haul both reefer and dry freight.

You really should establish a minimum haul rate. If the broker or shipper is unwilling or unable to at least meet your minumum rate, then I would pass on their load. I have an average rate that I ALWAYS attempt to get, no matter where I go. If the load goes to Florida, the Northeast or New England, then my rate goes up. It is the carrier who really has the power to get rates up. The broker has no way of making a living without the carrier. The shipper must rely on the carrier to move his products. If either want to move their goods, then they will either need to buy their own trucks or use a carrier. As the carrier it is up to you to set your own rates. If enough owners would establish their minimum haul rate, then things would eventually get better for the industry.

 

Great point Rank. To be honest I'm not sure what I need. Like GMAN said I need to set a minimum rate but I need to figure out what all of this costs. As I posted previously I play the credit game but it's to the point where I have everything all tangled up. It's all organized in my head but for taxes and stuff I spoke with a Certified Financial Planner who is going to untangle it all for me.

Just to give an example everything but the truck was at 0% but the truck was at 16%. I didn't mind that cause I never planned on keeping the loan for more than a month and I wanted to start building business credit. Well I decided instead of paying down the truck to get rid of PMI while I can on my mortgage as I'm in a bad market and before the value drops (amazingly it hasn't so far [I'm in South Florida]). So I did that and then took out a HELOC at a rate of 8.9% and then payed down half of the truck. Now for the rest I went to Suntrust and got a loan for less then 8.9% (I don't remember the rate off hand) for the balance of the truck. As I only have been in business for 2 months they wanted my wife as a cosigner. So when I get back I will sign those papers. So in a matter of months I will have 3 different ways of financing the truck.

Anyway GMAN just from my one experience dealing with these brokers the other day, I do believe in what you say. I mean what the hell these people aren't going to pay top dollar if we don't at least ask for it. I'm still in learning mode so like I said I am going to try the West Coast if I can get there and maybe stay out there for a bit.

My one big problem has been my lack of mechanical skills but I am slowly finding out how to resolve that. I actually did my first roadside repair. Ok it was only changing the headlight bulb but I did it myself nonetheless.

I'm in Iowa right now. I must say the amazement of all of this still hasn't diminished. I'm just a kid from the suburbs of Boston, what the hell am I doing in Iowa? I guess as long as it remains fun I'll be ok (and profitable). You know what they say, find something you like to do and you'll never work a day in your life.

 

It's not really a B.S. It's kinda like your credit score, the better it gets, the better rates you could expect! Some people, are willing to pay better, for dependable service! 8)

 

I agree with you Merrick. None of these brokers could give a rats ass how long you've been in business. Even the huge carriers who call me. They could care less just as long as you haul there load.

As far as rates go, you can ask for whatever you want but unless they are desperate they will just move on to the next truck and call them. I've sat before for 3 days saying I wanted .25 cents more per mile than was being offered for pretty much all the loads. Well, I just sat there. Some will tell you they will sit there until a better load comes along. Well, it doesn't in my experience. You can sit there till you rot.

There are no negotiating skills. "Nope, too much, the customer is only willing to pay this, have a nice day driver....CLICK"

 

Steve,

You would not have to sit for three days if you take the time to go into an area with less trucks and more freight. Just a suggestion. I have never sat and I get the rates asked for. Yes, it might take an extra 1/2 or 1 to research load density but it's worth it. I might turn down 6 loads in a row but the 7th load will be a winner. Eventhough, I post the truck, I still research for loads and will make a call if I see something.

Just my 2 cents......