ABF | Lost Accounts

My son runs my company now days as I have retired. I have a costing program that tells me how much it costs me to perform any given work. It is very simple, if you know your cost.

We never did and today still do not perform any work for a loss. However large carriers do . I never understood why, perhaps lane balance or some other reason. I just think I did not need the exercise..
It's a good with the bad scenario. To get the good paying freight sometimes you have to agree to the bad paying freight. All or nothing. A truism in business is "not all customers are equal."
 
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My son runs my company now days as I have retired. I have a costing program that tells me how much it costs me to perform any given work. It is very simple, if you know your cost.

We never did and today still do not perform any work for a loss. However large carriers do . I never understood why, perhaps lane balance or some other reason. I just think I did not need the exercise..
I would also like to point out that while in college we studied real working manufacturing companies that produced products that lost money. But those product lines paid for a lot of the fixed costs of a company and when those product lines where removed the overall profitability of the company decreased by a few percentage points.
 
I would also like to point out that while in college we studied real working manufacturing companies that produced products that lost money. But those product lines paid for a lot of the fixed costs of a company and when those product lines where removed the overall profitability of the company decreased by a few percentage points.
Yes...the quintessential ‘loss-leader’ items. Like the ones on the front page of the supermarket ads.
 
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