Fuel for Thought

Beware the Pyrrhic Victory

By Greg Huggins
Posted Jun 19th 2021 7:25AM

Choosing your own loads can be quite lucrative for the owner operator who understands his costs. If you start a business, any business, you must know your expenses in order to accurately price your goods or services to make a profit. The goal of a business owner is to make a profit, not just cover costs and certainly not to operate at a loss. 

When deciding which load to choose, consider the cost of that load versus the revenue. This may seem elementary, but some may need to hear this. Consider also the market you are in. Some markets may not be conducive to your business model and you may need to find a better market or adjust your offerings to the current market. When you do not understand your own business expenses, you cannot make an informed decision about a profitable load. Gaining a load may feel like a win, but it may conclude into a Pyrrhic victory. 

What is a Pyrrhic victory? It is a victory that comes at great expense, thus essentially becoming a defeat. In business, you must look at the big picture. A short term win may translate into a long term loss. 

If you take that “good” paying load from Dallas, TX to Bellingham, WA and then have to deadhead down to Los Angeles to get your next load, make sure you factor in that cost for the load. Your 2100+ mile trip just became a 3400 mile trip. If not accounted for properly, you could end up working for a full week or more just to break even or take a loss.

Beware of the Pyrrhic victories.

King Pyrrhus of Epirus - Pyrrhic Victory

See you down the road,