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///// What do you think of my rates as an "agent" /////

Discussion in 'General Expediter Forum' started by Andyinchville1, Apr 4, 2018.

  1. Andyinchville1

    Andyinchville1 Active Expediter Owner/Operator

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    HI All,

    Hoping to get some good conversations started as to what rates to charge.....

    I am bidding on becoming an agent (me being an independent co with full authority and having drivers I sub to) with a large logistics company.

    The company asked me for my rates for the following categories (note: charges are broken down from: Auto / Van / 14 to 24 straight truck).

    These are my numbers so far (Richmond, VA area) : Prices are : Car / Van / Straight truck (14 to 26')

    1) Minimum charge (0 to 20 miles) 30 / 35 / 65
    2) Charge per loaded mile after 20 miles 1.35 / 1.65 / 2.65
    3) Attempt charge at airport 15 / 20 / 25
    4) 11 PM to 7 AM surcharge 10 / 10 / 15
    5) Holiday surcharge 20 / 20 / 20
    6) Weight included in base rate 150 / 500 / 2000
    7) Per pound rate above base rate 10 cents / 10 cents / 10 cents
    8) Wait time per 15 minutes (first 15 minutes free) 4 / 6 / 10
    9) Pick and hold (not sure what that entails) 20 / 25 / 55

    Below for straight trucks :

    10) Lift gate rate (straight truck) - 15
    11) Pallet jack rate - 15
    12) Inside delivery - 25
    13) Debris removal - 35
    14) 2 man - 20 / hr extra man


    So what do you think ?
    Reasonable numbers ?
    What are you getting / charging ?

    For me personally when I drive a car for a company (expedited) , I get $1.00 per loaded mile.

    The prices above tho are for me hiring out the driving jobs after getting work from the logistics company if I have not priced myself out too high that they never use me (of course if I do some driving myself I can make extra $$ over and beyond what I normally make).

    The weight factors is what I have not really had any experience in .....I almost think I may be charging too much for the extra poundage since I have never done the straight trucks for hire to based on weight also....

    Most things I have done are lightweight car gigs ....Vans also never came in anywhere near heavy..... Straight trucks I have moved appliances but even if the 24' truck is full of appliances I don't think it is anywhere near the weight capacity of my under CDL box trucks.

    Any comments and constructive inputs would be greatly apprciated since I have not yet formally submitted my pricing.

    Thanks in advance for any and all help.

    Andrew
     
  2. Localrunz

    Localrunz Rookie Expediter Owner/Operator US Army

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    I think for some one to say either ways they would have to know all your costs! As do you provide all the insurance cargo ins etc. Then what do you plan on paying your help. What kind of freight are they going to give you that you need xtra ppl on. Lets say you charge 65 for 15 mile trip 25 for inside del and 20 for ur xtra helper thats 110 bucks. So you pay both ur guys on truck for the 2 hrs that it took to get this delivery done 12 bucks a hr thats 48 bucks then lets say 10 for fuel that only leaves you 52 bucks. Now if you have payments and maintenance figured in you might profit a few bucks. Now if you lease a truck with them covering maintenance on truck you might come out better. But i dont really know cause payments will be higher. Now if this is all straight out owned trucks you might could make it. But even my pay for your helpers seems low to me id think most ppl will want 14 to 16 a hr at least. But anyways just my views with info you provided. My biggest thing here would the kind of cargo you would haul and if you provide the cargo ins. Cause if its furniture or electronics. You will have alot more issues from the reg pallet freight etc. Then you have to worry about the issues of damage to ppl houses etc. Lot of variables that can come into play with different freight issues etc.
     
    Last edited: Apr 4, 2018
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    • Andyinchville1

      Andyinchville1 Active Expediter Owner/Operator

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      HI,

      A few extra details......

      Currently I own a few vehicles outright (a Jetta, A Gran Caravan, a E350 extended and a 26' box truck with liftgate (26K gvwr) .....They are mostly older vehicles BUT in good cosmetic shape and mechanically (also paid for)).

      I have full insurance (Commercial General liability, Cargo, Umbrella, Workmams comp.....I have a DOT# and MC#).

      I plan on doing some runs myself but by and large the volume is supposed to be so high that I will need to hire out deliveries to subs or employees (for ease of paperwork, I'll just do subs probably).

      Other than the above, I really don't have a lot of costs business wise (I use a lap top and cell for a mobile office but can do it at home if needed).

      As far as paying help, I was thinking I would just keep a percentage of each category and pay out the rest to the subs.....

      Currently, when I run for another company, I get paid $1.00 per loaded car mile so in my case I was charging $1.35 per car mile after the first 20 (the first 20 would be covered by the $30 flat fee which I would probably pay out $20 as the guaranteed minimum up to 20 miles for a short car run and get to make 35 cents per loaded mile thereafter).

      I suppose the above represents a certain percentage I would take when I sub out and maybe that same percentage could be taken for vans and straight trucks as well.

      I have no idea what "normal" companies make BUT I think it would be somewhat higher based on a few "secret shopper" calls I made to other companies (I wanted to be a little on the lower price side so I could assure myself of the contract / runs BUT still make $$).

      As far as cargo I would be hauling, the rate sheet was a general "catch all" for anything we may haul since the logistics co. just wanted blanket rates not rates for each load separately (i.e. on a case by case basis).

      It was implied in my conversation with the company that many runs would be expedited runs and that many runs would be to / from the airport.

      Andrew
       
    • Localrunz

      Localrunz Rookie Expediter Owner/Operator US Army

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      In this case if you own all trucks and dont have to touch freight its pallet freight wrapped and then you brace or tie it down correct. You should be ok but you still got alot of expenses that most expediters dont have. The help you hire will probably not stay long if you cant pay a competitive rate. Id really lay out all my expenses and break it down over and over till i knew for sure i wasnt just going to run my trucks into the ground for a few bucks.
       
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    • BigStickJr

      BigStickJr Veteran Expediter Retired Expediter

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      Don’t know why I missed this.
      $15 for a liftgate?
      You can’t buy/ maintain a liftgate charging that.
      I never thought much of an agent that couldn’t get me $100 for a liftgate.
      Had one that would get us $500 but that was gummint work.
       
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