If you were thinking of getting a truck or own authority....
#21
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Join Date: Sep 2006
Location: Mahwah,NJ
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You can talk about busness models until you are blue in the face. It looks great when you re read it on a message board.
I have yet to meet an o/o who has one. Buy a truck, buy a trailer get authority subscribe to IT and GL Start truckin
#22
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Join Date: Jun 2006
Location: Rockwall,Tx
Posts: 477
Originally Posted by Sonny Pruitt
The cost of fuel is so high now that trial and error can become very expensive.
You have to come out with a load out and a load back from day one. Trust me with 30 yrs exp as an o/o and a couple of years as an independant Unless a new entrant has a proven game plan given by a friend or mentor, the 3.25 per gallon of fuel will bury them. I am basing this on what I had to go through for the last 3 months to put a decent weeks work together on a consistant basis To be able to connect the dots of a load board takes time + mistakes To determine what is cheap freight and what is the market rate also takes time + mistakes Unfortunately mistakes are very expensive. I have every reason to believe that a new entrant will wind up with the crappy load. What is your definition of a crappy load? Since I had my authority I haven't relied a lot on loadboards. For the most part they seem to be a waste of time. I haven't had a lot of trouble putting 3 weeks worth of loads together so far. A little frustration here and there yes,but not any major troubles as of yet. Mistakes can be expensive in any type of business. Just make sure to learn from them. :wink:
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#23
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you are one of the lucky ones
and probably an exception to the rule most people reading these posts with aspirations of getting their authority are going to work the boards both ways When I started out with my own authority I just started booking anything to get some momentum fortunately I had a list of reliable brokers (which is also an exception to the rule) Good for you You don't need brokers
#24
There is a learning curve to anything we do. If we lease to a new carrier, it takes a few months to learn their system. The same holds true when you get your authority. Learning can be expensive, especially when you are learning on the job. Learning on the job has always been expensive, but with $3/gallon fuel the stakes have been raised. There are so many getting their authority who have never even owned a truck. Unless you have money set aside to sustain your start up, you are taking a great risk. A new carrier can survive using only load boards, but there are a lot of cheap loads that you must traverse to find the better paying loads. Not knowing areas where freight is good and rates at a reasonable level is something that one must learn as you go along. If you continue to travel to bad freight areas where rates are cheap you can easily go broke. On the other hand, I have gotten decent paying loads out of so called bad freight areas. I think one major pitfall so many make starting out is not knowing their operating costs. It is difficult to make a sound business decision about rates when you don't know your operating costs. You cannot haul for less than it costs you to operate and stay in business. Any business MUST make a profit to remain viable.
#26
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Join Date: Nov 2006
Posts: 1,095
Not to mention the extra fuel needed to run a reefer. CH Robinson pulled me back into Florida and then tried to get the load on my truck to New York or Long Island and wouldn't tell me the rate as there "was going to be another stop added". He calls me in the morning and starts with the general talk about his high school football days. Yeah so what? What's it paying? you don't know? then bye. (by the way one of the other persons in the office told me it was a good rate of $1.34. Let them put it on one of those broke down Miami trucks cause I'm not competing with them.)
I deadheaded out of Florida. Sick of running this reefer for cheap money. You can drive slow and get good mpg but a reefer running on continous, well there's nothing that I can do about that except refuse to turn it on for cheap money.
#27
Merrick, perhaps you could ask them if they want the reefer turned on. If so the rate is higher. Just tell them you have a minimum reefer charge in addition to the haul rate and that rate doesn't include the reefer running. :wink:
#28
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Join Date: Sep 2006
Location: Mahwah,NJ
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you should definately tell them you have a min reefer fee
you wont get any more money but you might catch the broker with a mouth full of cheerios and he'll spit them on his screen from sudden uncontrolable laughter
#29
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Join Date: Jun 2006
Location: Rockwall,Tx
Posts: 477
How much did the load going into FL. pay? There was a load here in Dallas going to Fl. for 2.00 a mile but I didn't book it and instead took a load for 1.30 a mile to socal. From socal I reloaded for 1.90 a mile going to Oh and reloaded in OH for 1.70 coming back to Tx. After some intense searching I found a load for 1.60 going to Oh again and another one coming back for 1.60. Where the load delivers to at times can make a big difference. Had I have gone to Fl. for that rate I would have easily given most of it back. :lol: I have found it easier to just stay off the east coast alltogether unless a friend of mine needs a special load moved to Tx,which is next to none. You don't have to bounce all over the country to make a profit.
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#30
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The load to Florida was like $1.60 a mile for 2700 miles plus the deadhead; I don't remember I got like $4500 and was supposed to get right out.
Anyway Gman thanks for the comment cause in all this abuse I'm letting myself go through, at least that made me laugh. I like that. $1.34 to haul you tomatoes? Sure no problem. What's that? The reefer set at 35? Well you didn't mention you wanted the reefer on, I'm sorry it will now have to be $1.94. Today I spent all day delivering mail in MO. and Kansas. Sucked but was pretty fascinating to see these mail facilities. Massive in scale. Well I'll be ending up in Kansas City and I'm going to get myself a load this time. These people are running me into the ground. By the way Sonny (sorry to digress in this post) I signed up for H&M Bay but I don't have shellfish on my insurance. Plus someone told me that by the time I am done with H&M I will owe them more than I make as they are always hitting people for claims on their fish. Don't know how true it is but I can't haul fish anyway. By the way, I found out the other day that my "friend" just got a nice load for one of his trucks for $2.85 a mile. Needless to say I don't get rates like that. |
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