I've read dozens of posts that state "say no to cheap freight", but honestly no one really shares what a good rate is. It seems to me like a lot of drivers blame other drivers for hauling cheap, but no one really takes the initiative to share what the "good" pay is.
The reason I bring this up is that when I used to do sales for a moving company, once a year the owner would send out our current rate sheet to all the other companies in the area. At first I thought he was crazy because it gave the competition the advantage of knowing what we charge, but in reality it was a great idea. Basically he was trying to say to the competition "Look, here's what I'm making and I'm doing well, don't sell yourself short". Sure, some companies would underbid us by $100 or so, but I was selling quality service and most of the time I was able to beat the lower bid by providing better knowledge, equipment, guaranteed dates, etc.
Basically what it did is kept the rates of our direct competition within 5-10% allowing everyone to make a decent profit no matter who got the job. Without that yearly letter some movers probably would have underbid us by 20% or more just because they didn't know they were able to charge that much more. Honestly, I think it would benefit the new owner operators on this forum if some of the more experienced carriers shared what in fact a "good rate" is.
I know what I need to make to turn a profit, but I also don't want to sell myself short starting out. I for one would hate to take business from someone else just because I was the cheaper option only because I didn't know I could get a higher rate.
So if anyone wants to help I'd like to know what are some of the good rates out there you are currently getting for flatbed and stepdeck?
What you're hauling? Route? Miles? Rate?
Thanks
Good Flatbed or Stepdeck Rates
Discussion in 'Ask An Owner Operator' started by RFI, Feb 9, 2012.
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The reason you don't see those of us who are getting good rates post them on a forum for the whole world to see is we would like to keep those good rates. If we start telling people about the good loads, lanes, and the type of freight we haul then some low life will come in and undercut our rates. Then we have to go back on the hunt again for good paying freight.
You need to figure out what your cost per mile is, then figure what you are looking for as profit. Add the two together and that will be the rate you throw at your customer. If they don't even bat an eye and say you bet, then you probably gave them a cheaper rate then what everyone else has. Good luck to you on your new business adventure, but those of us who want to keep our customers are not going to tell you what we charge, what it is, or where it goes. Nothing personal, just business. -
Oscar is right but really you shouldnt be doing anything under 2.00 a mile. I dont care what it is or where it gets you to. If we all held ground at a minimum price we would be better off
carwreck, Oscar the KW, RFI and 2 others Thank this. -
Out of Ohio to the NE We're doing anywhere from $2.**to $3.** a mile including FSC. It all depends on the length of the run, the area its going to (reload opportunities) and the weight of the shipment. Most of our loads weight 6,000lbs or less and require tarping. Not a bad paycheck for almost running empty if you ask me.
Side Note: YES! 500 posts! It's a milestone folks I'd also like to thank the Academy, the producers, Rick Astley for his famous Rickroll. All of the guys at 4chan for your demotivational posters and last but not least, my adoring fans...the dozen or so of you who are still left and haven't been hit by the ban hammer.
Thanks for the good posts and convos folks. It makes these forums fun.
We now return you to your regularly scheduled douchebaggery, comedy, and debauchery.Last edited: Feb 9, 2012
Mommas_money_maker and fireba11 Thank this. -
hey LS Agent, if your loads are so light how come you don't have a bunch of guys in hotshot trucking pulling it around, too much load for on a 40 foot trailer?
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@Oscar- Thanks for the reply. I respect your decision not to share your rates and understand it's just business. I'm simply trying to get a better understanding of what the current rates are? Honestly, my question was intended to be respectful to current owner operators and in no way was I trying to find out exactly for whom or where they haul.
I guess the point I was attempting to make earlier is that if you lose a customer to another carrier over a small difference in price, then you failed as a business owner to keep them happy and price may not have played as significant a role in their decision as you had originally thought. On the other hand, if there is a huge difference in price then sometimes customers really don't have any other choice but to go with the cheaper option based on pure economics.
Basically all I was trying to do with my rate request was make sure I base my rates on something other than what the load boards. I know I can make it on $1.85/mile but why start there if I know other o/o's are getting 2.50? I'd be happier with $2.45 rather than $1.85 starting out, plus I wouldn't feel like I undercut somebody because if they can't keep a customer over .05/mile then price isn't the only reason their customer gave me the work.
@MMM Thanks for the reply. Yeah I have figured I need about $1.85/mile based on current fuel prices just to stay afloat, so $2.00 seems right in line with where my minimum should be. -
There are far too many variables for there to be some trucking rate guide...not to mention the fact that this is collusion. I can't even set a consistent RPM or minimum charge within my own company. For some reason, o/ops like the 2.00/mi figure. To me, that is 1.45/mi + .55/mi FSC...which is a rate I would expect from a weak area to a good area. If you are talking about a rate from a good area to another good area...it would be 1.95/mi + .55 FSC. Good area to weak area...2.25-2.5/mi + .55/mi FSC.
RFI Thanks this. -
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I don't blame a shipper for wanting to get their product moved for cheap, I would do the same thing if I were in their position.
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