[solo379]

I see your point and kinda agree, we quoted on a high side, considering volume of that gig.

[rank]

Originally Posted by no_worries

When you guys start talking numbers in the $2.25-$2.50 range it really starts pushing the envelope of reality. We're talking dry van, dedicated, 5 days a week. Even at $2/mile all miles you're talking $300,000/year gross on a run where half the miles are empty. Like I said, great if you can get it, but if those deals were common we'd have a lot of O/O's out here retiring after 5 years.

True, but it is after all, 100% New York state, meaning everything has to be just perfect to keep the DOT happy. And then you have to deal with the snow storms and freezing rain 5 round trips a week. If I couldn't make a good number for myself after all is said and done, then I wouldn't bother.

The question was "What would you charge" not "What would it take to win the contract". In my case, I would need to buy a truck and find a good, safe and reliable driver to run NYS. As you know, people like this do not grow in trees nor are they cheap. And I don't need any service failures tarnishing my reputation. So my number was from that perspective. If I had a good driver on the payroll in need of work then I would probably want to win the bid and I might quote accordingly.

[no_worries]

Yeah, but if what you would charge isn't competitive in the market than what's the point? Your cost numbers are in line but your profit expectations are way out of whack. Cost should include driver compensation, whether owner operated or hired driver, profit is on top of that. Expecting to profit $75,000/year off of one truck is reaching; to say the least. A top-flight operator in the industry runs operating margins around 10%. That would put you at roughly $25,000. O/O's should average significantly better than that because they don't have volume on their side, but even 20% only yields $50,000/year and that would be a darn good deal. That would put an O/O pocketing $100-$120,000 for a gig where he's home every weekend. There aren't many out there that wouldn't fall all over themselves for that kind of deal. They just aren't that common.

[rank]

Originally Posted by no_worries

Yeah, but if what you would charge isn't competitive in the market than what's the point?

I guess the point is, I don't really need the work. Kinda like the fella that already has a good job and a head hunter asks what it would take to change companies. That's completely different number than if that fella was unemployed.

It's not really my goal to be the cheapest bid. If I'm the cheapest, I've done something wrong. I've had lots of situations where I've been under bid and didn't get the job, only to have the broker call back and choose me because of service failures on the part of the cheaper carrier.

Originally Posted by no_worries

Your cost numbers are in line but your profit expectations are way out of whack. Expecting to profit $75,000/year off of one truck is reaching; to say the least.

I make a good living as it is running steps and double drops. For me to add another truck and hire an unknown driver...well I just don`t like my odds. How many drivers will I burn through before I find a keeper? How many time will I have to do that run myself at the last minute because my diver doesn't show up? Just asking for a headache, and how much do I need to be paid for that headache....

If I had a spare driver it would be a different story.

[no_worries]

I understand what you're saying. My point is that your operation and experience doesn't really translate to what he's asking about. If we took your numbers and built a rate matrix and then went out and tried to land dry van jobs, we'd never win a bid. It'd be like trying to bid on your work using heavy haul figures. You run a lane that is very strong one way and terrible the other. Luckily, you haul your own freight on the weak end, so you have maximum leverage on the high value lane. Still, if you can pull $75,000 in profit on each truck given the miles you run; those are operating ratios that are rarely seen...in any operation.

While your numbers are a great goal for any single O/O, the fact remains that the job in question could be bid at a competitive rate and still be profitable enough to satisfy most single O/O's.

[rank]

Originally Posted by no_worries

....the job in question could be bid at a competitive rate and still be profitable enough to satisfy most single O/O's.

I understand, you are right and I agree with you.

I suppose it comes down to philosophy and my point is this; the OP asked "what would you pay a driver", which to me means he already has a job or is possibly already a single truck O/O looking to add a 2nd truck. IMO, to add a 2nd driver to his work load means substantial risk and he should be compensated accordingly. It needs to be a sweetheart of a deal and If he doesn't win the bid, then so be it.

[repete]

Originally Posted by rank

"what would you pay a driver", which to me means he already has a job or is possibly already a single truck O/O looking to add a 2nd truck. IMO, to add a 2nd driver to his work load means substantial risk and he should be compensated accordingly. It needs to be a sweetheart of a deal and If he doesn't win the bid, then so be it.

Yep I already have this job BUT as a company driver, I feel that I'm fairly paid for the job I do and I've been doing it without inceident for 5 years now. The only reason I asked was a just in case scenerio. Ireally don't know if I would want the headaches of owning a truck and then add the extra headaches of a contract, lots of room for problems for a 1 truck operation thats just starting out.

[freebirdrfd]

I would do it for free. I'm a heck of a guy.

[repete]

Originally Posted by freebirdrfd

I would do it for free. I'm a heck of a guy.

Well then, maybe I should sub it to you!