Cut out the Middle Man

Fuji Seal

Rookie Expediter
I'm wanting to become a Small Fleet Owner. Start out with 3 to 4 Straight Trucks. I already have 2 companies that I can start hauling for. My question is how much should I charge per mile considering that I'm not working for a truck company. Which would probably pay me around $1.25 per. This is just my company working DIRECTLY with the shipper. I'm cutting out the middle man which would be a trucking company that I would be leased to. Instead I'm getting the whole price. With me having my own authority. How much should I demand for. Please give me advice.
 

Fuji Seal

Rookie Expediter
So, let's say if I have a straight truck which is 26ft. GVW over 26001lbs. Gross weight 34,000lbs w/reefer. Does $3.20 per mile sound reasonable.
 

str8trk

Expert Expediter
Owner/Operator
"reasonable" is very subjective ... The party paying the bill will determine what's reasonable depending on the underlying circumstances and characteristics of an individual shipment. Commodity, length of haul, origin/destination points, transit and timing requirements, alternative capacity available in the market ... All of these variables and many more drive buying decisions
 

Murraycroexp

Veteran Expediter
If you're charging true customer rates something like......
$1.65 for vans.
$1.95 for loads requiring Sprinters.
$2.25 for smalls.
$2.75 for larges.
$3.00 for small semis.
$3.50 for full semis.
NOW, you will have to adjust ALL of these based on what they will actually PAY for.
But start in these ballparks. That will allow for happy drivers, fleet owners & allow for respectable profit levels.
Because if your fleet isn't happy they will LEAVE!!!
Just one idiot's opinion.
 

jjtdrv4u

Expert Expediter
If you're charging true customer rates something like......
$1.65 for vans.
$1.95 for loads requiring Sprinters.
$2.25 for smalls.
$2.75 for larges.
$3.00 for small semis.
$3.50 for full semis.
NOW, you will have to adjust ALL of these based on what they will actually PAY for.
But start in these ballparks. That will allow for happy drivers, fleet owners & allow for respectable profit levels.
Because if your fleet isn't happy they will LEAVE!!!
Just one idiot's opinion.
I will take those rates anyday...
 

jjtdrv4u

Expert Expediter
Right? Those aren't "to the truck" rates. Just know there IS profit to the carrier in there. And those are optimistic rates. Take those and THEN negotiate.
these are nice realistic rates for direct shippers to carriers...(leaving brokers out of the equation, unless your brokers pay you a lot more...lol).
 

skyraider

Veteran Expediter
US Navy
Use this site if you want. My son used it for sometime before he got dedicated runs hauling frozen chicken from Morris-town, tn, to SC. Truckstop.com – Online Freight Matching & Load Board

Before the accident and his own rig was totaled, he was grossing 6k a week and loved it. In other areas before the chicken runs, he hauled ice-cream at near 4 bucks a mile. Yes the brokers get a chunk, but he would negotiate loads and believe it or not, if a broker says he cannot pay what you are asking, it is not true. I have sat right beside my son while on speaker phone listening to him talk to brokers, not yelling, low calm voice. He would ask the broker rep if he could pay say 1700 dollars instead of the 1400 that was offered and many times he got it, unreal. Usually for just 400 miles , but when he got the chicken hauling runs, the dedicated was easy. If he could have stayed awake, he could have run 7 days a week hauling chicken, but you get into that DOT sleep time mess then... never believe what a broker rep tells you, they can pay a lot more then you think. Many truckers cave in to that first low rate that is quoted. .....don't cave in, to many cave in because they think they will not get any loads,,,,its not true, will that was the way I saw and heard it when I went with my son a couple of times.... do not cave in on the first rate that is quoted you, you can do better and you just might be the only truck available for the run, think about it.
 
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Fuji Seal

Rookie Expediter
"reasonable" is very subjective ... The party paying the bill will determine what's reasonable depending on the underlying circumstances and characteristics of an individual shipment. Commodity, length of haul, origin/destination points, transit and timing requirements, alternative capacity available in the market ... All of these variables and many more drive buying decisions
So how much should I pay my drivers per mile. According to what your saying.
 

Fuji Seal

Rookie Expediter
Use this site if you want. My son used it for sometime before he got dedicated runs hauling frozen chicken from Morris-town, tn, to SC. Truckstop.com – Online Freight Matching & Load Board

Before the accident and his own rig was totaled, he was grossing 6k a week and loved it. In other areas before the chicken runs, he hauled ice-cream at near 4 bucks a mile. Yes the brokers get a chunk, but he would negotiate loads and believe it or not, if a broker says he cannot pay what you are asking, it is not true. I have sat right beside my son while on speaker phone listening to him talk to brokers, not yelling, low calm voice. He would ask the broker rep if he could pay say 1700 dollars instead of the 1400 that was offered and many times he got it, unreal. Usually for just 400 miles , but when he got the chicken hauling runs, the dedicated was easy. If he could have stayed awake, he could have run 7 days a week hauling chicken, but you get into that DOT sleep time mess then... never believe what a broker rep tells you, they can pay a lot more then you think. Many truckers cave in to that first low rate that is quoted. .....don't cave in, to many cave in because they think they will not get any loads,,,,its not true, will that was the way I saw and heard it when I went with my son a couple of times.... do not cave in on the first rate that is quoted you, you can do better and you just might be the only truck available for the run, think about it.
Thanks alot for this information. Very useful
 

Fuji Seal

Rookie Expediter
If you're charging true customer rates something like......
$1.65 for vans.
$1.95 for loads requiring Sprinters.
$2.25 for smalls.
$2.75 for larges.
$3.00 for small semis.
$3.50 for full semis.
NOW, you will have to adjust ALL of these based on what they will actually PAY for.
But start in these ballparks. That will allow for happy drivers, fleet owners & allow for respectable profit levels.
Because if your fleet isn't happy they will LEAVE!!!
Just one idiot's opinion.
I figure that I would be pretty close to these rates. I will have 3, 26ft Straight Trucks w/reefers. Thanks for the advice
 

str8trk

Expert Expediter
Owner/Operator
Fuji ... I presume you are asking these questions in order to develop a well thought out business plan. That's the right approach ... You'll more than likely fail without one. So you are talking about 26' straights with reefers, which suggests to me that your thinking more along the lines of a local / short-haul operation vs. OTR expediting. With a 26' box, your sleeper options are extremely limited. The local vs. OTR driver pay formulas are drastically different. Local tends to be an hourly wage, OTR is typically mileage and/or % of revenue based.
 
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Fuji Seal

Rookie Expediter
Fuji ... I presume you are asking these questions in order to develop a well thought out business plan. That's the right approach ... You'll more than likely fail without one. So you are talking about 26' straights with reefers, which suggests to me that your thinking more along the lines of a local / short-haul operation vs. OTR expediting. With a 26' box, your sleeper options are extremely limited. The local vs. OTR driver pay formulas are drastically different. Local tends to be an hourly wage, OTR is typically mileage and/or % of revenue based.
Str8trk, the business that I will be having is a small fleet where I will be working directly with the manufacturing companies. The companies will be giving me a call as soon as the loads are available instead of me going through the broker or lease to a trucking company. It will be long haul runs. My drivers will be picking up delivering and coming back home for another load. So, what would be the best way to pay the drivers. Per hour, or percentage of the load or per mile. I already have 3 companies in my area that I can get direct shipping
 

Treadmill

Veteran Expediter
Owner/Operator
It will be all over the U.S. I pretty much know where most of all of the loads are going. My company will be on call but from home. Unlike, waiting for loads out on the road and waiting at truck stops.
I would try to keep your loads to a max of 500 miles or less due to dh. This will keep your fuel expense and wear and tear on your vehicles to a min. Also you may be able to use one of the load boards to get them return freight to your home area. A win win in my book.
 
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str8trk

Expert Expediter
Owner/Operator
Not saying it can't be done, but, the model you are describing is rather uncommon ... to the extent that it sustainable anyway. It's pretty tough to find consistent top-dollar one-way straight truck loads in your back yard that will support round trip driver pay, fuel, and other expenses. You will need every penny of the $ 3.20 / mile one-way rate price point mentioned in your earlier post. GOOD CDL drivers are hard to find, and while regular home time is appealing to a lot of folks, you have to come up with a formula that will provide them with a reasonably steady and predictable income. A fleet of 3 trucks doesn't sound like much until you start doing the math to determine the actual operating costs on a weekly or monthly basis. Insurance alone will run you around $ 1,000.00 / month / truck.
 
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