New To Trucking Pricing - please help

[Ozianone]

Hello everyone .

Im in the process of opening my own trucking business . Im going to only operate straight truck or small van in the beginning.

Tomorrow im meeting with a vendor that sell clothes to stores in different cities to introduce myself and build connections prior to starting the business ( i was sent to them through a connection) One of the questions that he asked over the phone was “ how much you charge ? “ i told him will talk tomorrow

But i really have no idea of how to come up with a price at least at the moment. Per my understanding their customers that I'm going to be shipping stuff to are within 100 miles . And all what this vendor will do is refer me to those customers to ship the merchandise they buy. How should i come with a price ? Is it per mile , per carton or per pallet ? I know this might sound funny to most of you, especially that im meeting with the vendor tomorrow, But i would really really appreciate your feedback and help.

Thank you

 

[Ontario Outlaw]

Per hour

Or per day

 

[Airbourne]

Per hour

Or per day

I believe his question could best be answered if he would provide relevant information.

He can charge per hour or per mile or per day,, or even per contracted load based on a sound viability study, which must include his initial investment, equipment depreciation, Licences and taxes, daily operational expenses, and finally labor cost including his own wage. (for now) ,,

Generally speaking, judging by his question,, and since he doesn't have a business plan,, he should charge on the basis of this simple formula:

WK. Gross Revenues = pTruck X pDay X pMan/Hour

If he has one truck, that operates 8/h a day,, 5 days a wk ,, then the truck must generate enough revenues to cover truck mortgage + insurance& docs&taxes + depreciation + maintenance + fuel + his wkly wage if he is a soul operator.

This can be extrapolated for now to the tune of industry averages $1000 a day for tractor trailer combination or $750 a day for heavy straight ,,, and $700 a day for light straight.

These figures are safe initial figures, which must be recalculated based on real time operation and a viable business plan.

Ask more relevant questions, and gain as much knowledge and make your decisions in light of your cumulative experience. ,,,

An accountant can be of great help during real time operation because he/she can show you how your business is fairing on spread sheet. ,,, This will enable you to effect any changes necessary for the success of your business.

I hope this helps for now.

Best of luck,,, and keep asking as many drivers as you can. You will get different answers all the time. But it will give you more insight.