Posted by Kevin Snobel at 03:02 PM
It still amounts to the same thing KISSING A DEAD FISH ( A COD ,NO LESS). Well I guess as long as you are one of the first that makes it acceptable, ( ACCORDING TO MY TWO LOVELY, FEMALE SOURCES ANYWAYS).
It is funny how Panic sets in, and the rumours swirl, and the vulchers surround , and every trucking company out there is going broke. Yet we are ( THE STRONG ) for the most part, still here, still making money, still paying bills, and still surviving. Some of our associates in this business still dream in colour. TECHNICOLOUR no less.
TORONTO TO CALIFORNIA FOR $2800.00 That is $1.13 per mile to the company. Now the company has only O/O working for them. So like most companies they either pay a percentage of the gross or a per mile rate to the driver and the driver incurs all of the expenses. Let's analyze this for a minute. An average trip to California would use up if the truck is lucky 6.5 miles per gallon. That is 385 Gallons of Gas to get to L.A. Now Gas today is roughly $ 3.00 a Gallon (U.S. GALLON) The O/O has an expense of roughly $ 1155.00 for Fuel alone. The company on the other hand is charging the client $2800.00.
Let's factor in the following Border Crossings/ Bridge Tolls/Toll Roads/Oil/ TIres/Maintenance/Repairs/DRIVER Profilt/ Licensing/Permits/Fuel Tax/Take Home Money/Insurance/and of course NET PROFIT. Now To me, IF YOU SLAPPED ME IN THE HEAD WITH A DEAD FISH, OR MADE ME KISS A DEAD FISH ( CORRECT LADIES), it makes more sense to do that, then run a truck at the above prices. Yet some companies are out there trying to survive doing that every day. We wonder why so many in this business cannot survive.
I would think You do not need to get slapped in the face, to realize when quoting rates, take all your expenses into account, add them up, leave leftover for profit, then quote above that figure. Nothing wrong with that is there? I didn't think so. Yet I have come across at least 3 or 4 companies recntly (last week or two) , that are charging between $ 2800.00 and $2950.00 to go to L.A. from Toronto. Let me tell you something folks, OBAMA AND STEPHEN WILL NOT BAIL US OUT.
They could not give 2 HOOTS or 3 for that matter, about the Trucking industry. They do not care how many people we employ, how much we transport every day, what we move every day, what it takes to survive every day in this business. We sure as heck don't have to worry about any BONUSES and giving them back. I know some very close associates in this industry that just shake their heads, at what is going on with rates, and business in general. We must be one of the few industries where we get excited we are operating a 2% 3% 4 % or better OPERATING RATIO.
Who do we have to blame ONLY OURSELVES. THE ACCOUNT MANAGERS, SALES REPS, V.P. OF SALES, GENERAL MANAGERS, DISPATCHERS, ETC, need to stop letting everyone dictate to us what they are willing to pay to move their goods to market. Without us, their goods do not get to market. THEREFORE THEY DO NOT SELL, THEREFORE THEY EITHER ARE STALE DATED, OBSOLETE, OR THE COMPETITION ALREADY SOLD THEIR GOODS INSTEAD. Why? Simple, they were willing to pay our price to have their goods on the shelf. Is L.A. the only point that does not work like this. NO WAY, JOSE. Today a few Account Managers, were telling me about, an account they dealt with, and the 3 P.L. involved were offering $ 550.00 for a load from Toronto to Chicago Illinois.
Somone out there took it. The load moved. At what price $ 1.06 per mile. Well let me tell you everyone out there in TRUCK WORLD. If we continue this downward slope, it is no wonder so many out there will not survive. Wake up, smell the roses, (violets, carnations or any flower you desire) and quote what you deserve, not what someone is offering. The best customers out there, are the ones looking for LONG TERM RELATIONSHIP BULIDING AND COMMITTMENTS FROM THEIR CARRIERS. They also want to guarantee their product is on the shelf in time to sell, or on their customers, doorstep in time to sell.
As for me, WELL THE TWO LOVELY LADIES IN QUESTION ABOVE, I HOPE TO GET SMACKED AGAIN WITH THAT FROZEN COD, AND GET, SCREECHED IN. I guarantee I will certainly push my way to be first in line. For those of you that want to know who the lovely ladies were, well truth be told, IT IS A TRUE STORY< but I NEVER KISS AND TELL.


Comments
Just FYI...spell check? Vulchers? Vultures maybe.
Posted by: dave | March 27, 2009 10:45 PM
I had other mistakes there as well. Took them out. I guess that is all that got your attention, then I have failed in my quest to help the industry operate at a more consistent, profitable, viable level. Gainfully employing the men and women we do day in and day out.
Well!~ I guess there is always tomorrow
Posted by: Kevin | March 30, 2009 02:02 PM
I'm not writing to correct grammar.
This is a good post. I hope the industry takes heed. In times like these you get horror stories on pricing and I hope the examples you've cited are on the low end (isolated spot rates).
If it's not started already, the industry will have a shakeup. It is difficult to point to one, or two culprits. Is it competition? deregulation? 3pls? Agressive Sales Managers who are so far behind budget that they will gain business at all costs.
Certainly, these difficult times will pass - likely through capacity reduction.
Posted by: John Doble | April 2, 2009 01:57 PM