Turn Down That Load!!

[eztruckloads]

I know what you’re thinking, “I have to get home” or “If I’m parked I’m not making money.” You’re right, and we are all guilty of using those reasons taking loads that we shouldn’t even look at. But there are other things to consider, the main reason is the cost to operate. As an owner/operator or a small trucking company, you must run your business as a business, which starts at turning a profit.

Let's think about the RPM that you are actually getting from Brokers or other Freight Forwarders to the CPM that you are spending.
You should have the answer to that question in the back of your mind each and every day. You should be able to answer that question without thinking, exactly how much it takes to operate my truck.

This is not just for fuel and labor, I mean for insurance, taxes, licensing, maintenance, labor and fuel all bundled together. In order for you to run your truck and make money, you need to run it a certain CPM.

When you see a load posted to a load board, you should be able to do the math and determine the profitability. Profitability = Total Revenue – Total Cost, where Total Revenue is the load pay plus any fees and the fuel surcharges.

I think we all need to live by “Say no to cheap freight.” But how many of us actually put the motto into action? It starts with each of us as individuals. We must operate our businesses in a successful manner in order to survive in this highly competitive industry. Calculate your cost to operate, add your profitability, and commit it to memory. And remember, if the load you are looking at doesn’t meet your profitability minimum, then help yourself and the rest of us – Turn Down That Load!!

[dogkiller1964]

Amen Say It Again

[JLKKLJ777]

For some operators that have a great rate per mile on the outbound leg can actually afford to take a lower paying load to get back for that gravy run.

This is how the big companies operate. It is not an absolute minimum rate it is more the whole picture that they are looking at.

For the big companies it makes more sense to keep those tires turning and at the very least get that truck back into a profitable load position rather than eat the cost of the fuel and dead head back.

I believe this is the main philosophy that separates the large profitable outfits from their smaller counterparts.

[Lurchgs]

that makes sense - your overall cost per week, or month - and pick/choose loads that 1) ensure that you are in the black at the end of the week/month 2) get you to the next load (or close - but deadhead is a loss...)

[heyns57]

The rule of thumb for a backhaul is to cover all of your variable costs, and contribute something to your fixed costs.