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-   -   I would like to axe a question . . (https://www.classadrivers.com/forum/owner-operators-forums/37537-i-would-like-axe-question.html)

cdswans 03-31-2009 02:22 AM

I would like to axe a question . .
 
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 03-31-2009 02:26 AM

Quote:

Originally Posted by cdswans (Post 444624)
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 03-31-2009 12:11 PM

Quote:

Originally Posted by mike3fan (Post 444625)
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 03-31-2009 12:19 PM

Quote:

Originally Posted by marcel27208 (Post 444660)
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 03-31-2009 03:10 PM

very true! :o

cdswans 03-31-2009 07:38 PM

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?


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