Channel 19

Todd Dills

Whence the great rates?

| August 09, 2012

Prime’s Don Lacy
We are simply not interested in being the lowest priced carrier. We are interested in providing the overall value to customers . Our size (4,400 trucks, 7,000 trailers) gives us a lot of leverage in rate negotiations. We have a well-known reputation for having the best and newest equipment. We routinely receive Carrier of the Year awards from Fortune 500 companies.

These advantages make it possible for us to demand and receive some of the highest rates in our segment of the Industry.

Allen Smith
**Do your homework and research on just who you are dealing with. Our friend Dan Metully has a fairly new website, TransportWatch.com. It’s a website for us all to provide input on, reporting both good and bad companies. Sort of an Angieslist for brokers, shippers, drivers and carriers.

**Have a good business formula and don’t move “cheap freight.” It hurts everyone.

As reported in the August Overdrive top challenges feature, former household-goods-hauling owner-operator Smith notes the importance of selling yourself: “your CSA scores, your professionalism, and your track record.”

When we had our moving business we would find out as much info over the phone as we could in order to get an idea of cost before we went out and conducted the survey. We dressed professionally and before we left the office we calculated the minimum we would need to charge to cover ALL expenses ( business formula) and include our profit.  

You need to have your formula in place in order to determine your net profit.

**Insist upon seeing the freight bills. Recently, [truckers attorney] Paul Taylor has been involved in a case representing 22 drivers who signed leases with VFS and who were supposed to be paid 74 percent of the hauling charges and 100 percent of the fuel surcharges. The company did not disclose copies of the freight bills to the drivers, so they couldn’t determine what the loads paid.

Taylor goes on to say in this article that the operators are “supposed to get their invoices without asking. He didn’t turn them over even when they asked.”

If you’ve missed it as yet, find more on the subject of rates from these and other sources in this story, part of our August top-challenges feature.

  • Ben

    How would I be able to make it, if I get paid a $1.52 a mile?
    Operation cost are $1.10 that would leave me with $0.42 profit per each mile, but I have to pay IFTA Bridge tolls from the $0.42 Cents profit? Well but as long as there’s some smart people to do it for that much it won’t really matter.