[cdswans]

I am frequently passed by trucks of companies I know to be in bankruptcy. Jim Palmer and Gainey are two that come to mind. Simple math would suggest that slowing these trucks down would decrease the operating cost per mile. What part of the equation am I missing in the more complex math?

[mike3fan]

Originally Posted by cdswans

I am frequently passed by trucks of companies I know to be in bankruptcy. Jim Palmer and Gainey are two that come to mind. Simple math would suggest that slowing these trucks down would decrease the operating cost per mile. What part of the equation am I missing in the more complex math?

I would think poor management and poor operations have more to do with them being bankrupt than fast trucks.

[marcel27208]

Originally Posted by mike3fan

I would think poor management and poor operations have more to do with them being bankrupt than fast trucks.

maybe they have fast trucks BECAUSE of poor operations and managment?

[mike3fan]

Originally Posted by marcel27208

maybe they have fast trucks BECAUSE of poor operations and managment?

If I can run as fast as my truck can go(if I wanted to) everyday and not go bankrupt they obviously don't know how to price their services, or manage the company properly.

Fuel while the highest expense we have, shouldn't be the determining factor in whether a company survives or not.

[marcel27208]

very true!

[cdswans]

Revenue per mile
-Cost per mile
=Get out of bankruptcy (or not)

If your fuel and related costs are lower, the gross and net will be higher. Is there some secret formula that justifies higher cost due to higher speed, maintenance, insurance, etc.? It would seem to me that a knowledgeable bankruptcy trustee would demand lower costs aka speeds. Or is there more to it than that?