Owner Operator A ‘Great Purge’ is pushing small truckers out of business at an unprecedented rate

[mndriver]

Same. It's absurd to think an OTR guy and a local guy are going to incur the same costs. Let alone a guy who runs 3000 miles a week at 7-8mpg in top gear all the time vs a guy running 1000 miles a week pulling grades at 3mpg all the time.

Why it’s important you do your own figures.

Mine is not @Mike or anyone else for that matter. You seem to think it is and that this is what you, @Electric Chicken , should get exactly too.

If you don’t see over 200,000 miles on a set of drives, the. By all means, adjust to your situation.

But don’t get your panties in a bunch because that’s what I used.

Use the concepts, not the content.

 

[mndriver]

Our trucks loading and delivering the sea-going tankers never leave the port and run maybe 3-5 miles a day on a good day. They get like 2 mpg and tires last maybe 1500-2000 miles. But the revenue per mile is unfathomable for those trucks. They are worked hard and put up wet every day. When you divide the engine hours by the miles the speed average is less than 5 mph. They have to be manually regened at least twice a day.

I just put my 3rd set of rubber on all the way around and the truck only has 400,000 on it. The coral infused roads here eat them up.

So base things off engine hours…

Not like the engine doesn’t already have an hour meter or the ability to show idle hours

 

[Electric Chicken]

Why it’s important you do your own figures.

Mine is not @Mike or anyone else for that matter. You seem to think it is and that this is what you, @Electric Chicken , should get exactly too.

If you don’t see over 200,000 miles on a set of drives, the. By all means, adjust to your situation.

But don’t get your panties in a bunch because that’s what I used.

Use the concepts, not the content.

You're off your nut.

I made absolutely no post indicating that I don't have and know my numbers. In fact the post that you quoted was indicative of the exact opposite, Mr "Stop thinking like a driver."

You're the freaking fool who said mileage rate shouldn't change because it all averages out.

 

[Mike]

You are both right on things, and the way expenses are viewed between local and OTR can easily be completely different.

Going at each other in the thread does nothing to encourage others to participate, so stop that part of it.

Me doing a local load is simple, it’s a day rate, or at the very least, an hourly rate. Very seldom will I not do it for a day rate though. If I can’t get the daily rate I need, I’m usually better off leaving it alone and finding something more geared toward my operation. My truck is not designed to do local work, my tires are not made to withstand a local operation.

 

[mndriver]

Same. It's absurd to think an OTR guy and a local guy are going to incur the same costs. Let alone a guy who runs 3000 miles a week at 7-8mpg in top gear all the time vs a guy running 1000 miles a week pulling grades at 3mpg all the time.

Yes they are the same…

Exactly…

We both pay insurance. We both pay a wage. We both pay office expenses. With little to no difference between them. Even down to office space. IF you have a home office, that percentage will be different for deduction purposes, but the concept and availability is still there. If you have an actual office, it’s the actual lease or rent paid.

Fuel is averaged over time. Not by the load. Fuel cost is what’s on the pump. Fuel consumption is a 30, 60 or 90 day average based off actual purchases over miles driven. But the concepts are exactly the same. Just put YOUR numbers in there.


@Mike, it’s not arguing. It’s stating GAAP. Plain and simple. But trying to explain that to truckers seems to be pointless.

Hell, the book I linked is for a 500/600 level transportation management program text book. Understanding the concepts used in it would explain volumes to truckers who think fleets are insane charging/paying the rates they do. YOU are welcome to borrow it and read over it. But my accounting practices don’t seem to mesh with yours either. All coming from material such as that text book or 4 years of accounting.

Knock yourself out.


Just remember…

Don’t haul cheap freight

 

[Mike]

@Mike, it’s not arguing. It’s stating GAAP. Plain and simple. But trying to explain that to truckers seems to be pointless.

The problem here is, no matter how good the information may be, it’s no longer listened to with comments like that.

There are multiple ways to come up with good numbers. When your economy per mile numbers are extremely low and based on local driving, it’s just as easy to use a per month average

Same with tires. If a local truck is chewing through tires at the rate of what a locally operated tanker would, might be no benefit it calculating a per mile average anymore

In the end, no matter how you do it, if the input is correct, the output will be correct.

 

[mndriver]

The problem here is, no matter how good the information may be, it’s no longer listened to with comments like that.

There are multiple ways to come up with good numbers. When your economy per mile numbers are extremely low and based on local driving, it’s just as easy to use a per month average

Same with tires. If a local truck is chewing through tires at the rate of what a locally operated tanker would, might be no benefit it calculating a per mile average anymore

In the end, no matter how you do it, if the input is correct, the output will be correct.

Like I said…


Embrace the concept…


Not the content.


And then I got my shit jumped because one says there’s no way he’ll get 320,000 and the other says there’s no way our fuel mileage is the same.


Not my ass you should be preaching to. But I get it. The fact I’m a bit more blunt about someone being wrong doesn’t seem to sit well.

You can lead a horse to water. Been trying to explain this to him and others for over 8 years.


And it STILL falls on deaf ears.

One of the biggest downfalls of this industry. The misguided conception everything falls against miles driven. But hey, that’s how everyone feels comfortable with, so knock yourself out.

It’s pointless to explain it. Even to you. It’s all miles driven. And you can’t seem to understand that as well.

So people keep spewing “don’t haul cheap freight…”

And they can’t explain what cheap freight even is.

 

[mndriver]

Forget even making the suggestion that being an owner operator is running a service business…

From Harvard Business review:

Strategy is Different in Service Businesses

Many managers of service businesses are aware that the strategic management (by which I mean the total process of selecting and implementing a corporate strategy) of service businesses is different from that of manufacturing businesses. This article discusses how pure service businesses are...

hbr.org

How to Manage a Service Business in 2022 | 8 Tips from Experts

We reached out to some of our valued partners and customers to ask what advice they thought every home service business owner should know to ensure profitability and growth year after year.

www.servicetitan.com

Trucking is no different than the airline industry. The only difference is the cargo.


Likely to really put panties in a bunch.


Am I being snarky? Hell yes. In my eyes, with every justification for it because a select few want to argue every stupid nuance how it’s different from their particular situation and not grasp the bigger picture and concept.

 

[Rigjockey]

American Airlines used to leave their planes with bare aluminum because the paint added weight. you wouldn't think so but think of how much a gallon of paint weighs, now multiply that to cover a plane and many coats.

American airlines got rid of magazines to reduce the weight.

Did other airlines do the same/ no they didn't. No idea why not.

Now American Airlines paints their livery, Because planes are made from composites and not aluminum.
American Airlines made some choices and others did not.

What does this have to do with the thread topic? Probably nothing but somebody mentioned airlines and I could not help myself.

 

[Electric Chicken]

Like I said…


Embrace the concept…


Not the content.


And then I got my shit jumped because one says there’s no way he’ll get 320,000 and the other says there’s no way our fuel mileage is the same.


Not my ass you should be preaching to. But I get it. The fact I’m a bit more blunt about someone being wrong doesn’t seem to sit well.

You can lead a horse to water. Been trying to explain this to him and others for over 8 years.


And it STILL falls on deaf ears.

One of the biggest downfalls of this industry. The misguided conception everything falls against miles driven. But hey, that’s how everyone feels comfortable with, so knock yourself out.

It’s pointless to explain it. Even to you. It’s all miles driven. And you can’t seem to understand that as well.

So people keep spewing “don’t haul cheap freight…”

And they can’t explain what cheap freight even is.

You got your shit jumped because you keep putting forward stupid ass assertions that aren't even remotely true.

You don't do local here. I do.

And this all started when you rebutted my claim that a shorter heavier hillier load that costs more to accomplish should pay more than a longer lighter flat one that costs less.

Get back to me when you'll deliver from Baltimore to NYC 110k gross, 120" wide for the same per mile rate as Baltimore to Nevada 60k gross, 100" wide.

Forgetting everything else, just the fact that you think your fuel mileage and mine are relevant to compare shows how nonsense your position is.

I don't GAF about your fuel mileage. I GAF about mine. I'm going to look at two loads and what they'd cost me to run, and the one that costs me more is going to have to pay more or I'm not doing it. And I'm looking at everything, not just fuel.

If I'm the only sucker doing the heavy hilly paper loads because nobody else will, I'm gonna be the one stuck doing them day in and day out. I'm making LESS money than I could be and SHORTENING the time until I need an oil change, tires, a turbo, an EGR cooler, a DPF cleaning, fuel stops, etc.

If I don't factor the shortened service life of EVERYTHING, I'm on a fast course to ruin.

It does NOT all even out running local.

 

[mndriver]

Ok

 

[mndriver]

A 2-part article related. Since nothing I comment comes out correctly.

Owner-operator self-dispatch: Successful decision-making

As truck owners progress toward greater control of load selection, negotiation and planning, changing mindsets can set you up for self-dispatch success. Find more in this two-part feature.

www.overdriveonline.com

Part 2

And he explains it the same way I explain the concept to people.

Costs in relation to time for better load evaluations

Selecting the loads based on the information showing on the load boards, or received from a broker on the phone, can play out with big differences when it comes to bedrock costs/profit.

www.overdriveonline.com