A question for the experts

A question for the experts
Posted: Tue Mar 3, 2009 7:05:20 AM

I'm buying a trucking company that has a small fleet of 10 tractor/trailers hauling construction aggregates to regional customers.

I have a good handle on their cost of operations but I'm trying to understand a better (best) method for pricing loads to the customer.

Generally, they quote a price per the loaded mile or ton, depending on customer preference.   The company gives a discount on longer routes which is where I'm having difficulty.  I realize it's the leveraging of the fixed costs that are being passed on to the customer as a price break but is there a rule of thumb or table that people use to determine the price/per mile at certin milage points?

Thanks in advance for your replies.

RE:A question for the experts
Posted: Thu Apr 29, 2010 11:22:45 AM

First let me say I don't think of myslf as an Expert at all. The way this post is titled may be the reason you had no replies before this one? In this business I doubt that even the most successful people in it think of themselves as experts? I think to last any length of time in this industry you constantly need to analyze what your doing, and make changes when and where needed. I've been at it for over 25 years now and I feel I'm still learning it. ;)

In your case I think you should figure this rate based on truck operating cost, Driver pay, and a realistic company profit.

If your not sure how to figure your operating cost  you can shoot me a email and I'll try to walk you through it. To buy a company and not know this I feel you'd be making a huge mistake. If more people knew their operating costs before they purchased a truck the industry would be much better off. Good Luck. Gary