How much should I charge for hauling freight?

[Frontier9]

The available loads I have been seeing online require the responding carrier to make a bid on how much he/she is going to charge in order to haul the specific load. As an independent owner operator, how much do I need to charge to haul a certain load? Is there a formula that involves weight of load and distances traveled, that I can use to calculate how much to charge for hauling a specific load? Any assistance on this matter would be greatly appreciated.

 

[boone315]

Not trying to sound like a smart ass, but shouldn't you already know that? You started a business without any type of business plan?, profit/loss margin? income/expense? Taxes? Any type of budget at all? Not a model for success, it really is not something that can be explained to you, especially without knowing what you're truck payment, expenses, household bills or area of operation is. I am not sure how you became an owner-op, pretty sure it is not through a legitimate bank because they would require some type of plan, and the gov't/Veteran's Administration definitely would not give somebody one without a business plan. I hope you have something/somebody to fall back on. I could show you the budget I have for my own use, but have no idea how to get it on the computer plus it might not work for you because my truck is paid for.

 

[pied piper]

The answer is little of what the other driver told you .It's all in knowing what the cost of operation is for you it difers for ea person a lot depends on what you owe and what you want .1st step determine your cost of operation break that down to a cents per mile form,( operation cost is more then just what truck payments and fuel cost are ) you need to learn to pay yourself a salery and dont over estimate your worth If company drivers are making thrity cents a mile that what you should pay yourself your salery is part of the cost of operation.next is repair and replacement that will depend on how old you tractor is and if you have a warrenty on a new truck after you have all this worked out then decide how much profit you think you want for return on your investment. Remember most companies work on a 12to 18percent margin . That money is the companies to use to expand and grow not extra for a trip to disney for the family or a new house thats what your salery is for so dont short change you pay check If you run your payments for 60mo. and you make 18%over cost your truck will be paid off as long as you havent crossed the 750000mile mark you will have some resule value and you can upgrade to you next truck with little or no financing 9 AND IF THE RABBIT DIDNT STOP TO POOP THE TURTLE WOULDNT HAVE WON THE RACE) NO SHORT CUT NO MAGIC JUST WORK

 

[boone315]

A VERY rough example of what I mean,,, of course it does not take into account your 'salary'

MONTHLY ESTIMATE

Truck pymt- $2,200

Trailer pymt- $600

registration/permits
tractor/trailer @ $2500/yr- $208
(not counting HUT/2290)

Insurance Trk/Trl
@$3380/yr- $280

Budget maintenance/Repair- $1,000

Fuel Tax- $100

Total- $4,388

@ $2.00 per mile- 2,200 to pay TRK/TRL


Diesel $3.30 @ 7 mpg- (314 gal-$1037) additional cost to pay for TRK/TRL
(Not going to factor in the additional miles needed to pay for that fuel)

Estimated break even
TOTAL MONTHLY COST = $5,425@ $2.00= loaded 2713 miles/month

This is based on loaded miles, does not take into account deadhead/cost or taxes or accountant

you will have to figure out your cost of living on the road, house hold bills and so on
I also suggest putting whatever extra $$ you can scrounge into a emergency account to cover the
cost major repairs/down time/slow times

 

[searay]

what load board are you on that asks for you to bid on a load?

 

[boone315]

I know Buchanon rigging and crane makes their owner op bid on loads, why I did not go to work there, bad enough when other companies try to cut your throat but when your fellow driver is made do it, that is sad

 

[Flatbedpete]

what load board are you on that asks for you to bid on a load?

I don't remember the name but there is one. Don't bother we are listed there as a hauling company and all we get is stupid questions.
Can you haul a car, can you haul a truck, can you haul a semi or heavy piece of equipment. Then the big one, can you do it for this, and the answer is always NO. The best one was this. Is that your best price, I said no, its not my best or my worst. Its my only, I don't haul cheap freight, but if you are in the market, I can sell you a complete company that can do what ever you need, and then you can pay or charge what you want.
We use to bid, thats a waste because some moron will take the load for fuel.

 

[Frontier9]

searay,

The load board that I had looked at is Freight Brokers Truck Loads for Truck Drivers Load Boards, there is a field that supposedly shows the number of bids received from carriers for the particular load. I have learned that this load board is sketchy and should be avoided.