RATE FORMULAS
Posted Sun, Sep 06 2009 04:28 AM CST
RICK GOBEL
Posts: 17

I have allways figured my truck at three times the cost of fuel for my base rate. If fuel is at $3.00 gal and my fuel rate is 6.0 mpg, it works out to $0.50 a mile fuel cost for $1.50 a running mile, rouhgly $90 per hour for your truck. I try to keep it at the $90 per hour figure in figuring my cow rate, including the loading and unloading time.

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Posted Sun, Sep 06 2009 11:25 AM CST
CJ PETERSON
Posts: 9

Was wondering how most figure there formula for there rate ?  I have for last several years have been using the price of fuel in the area that i am hauling divided by 4.5mpg as a average and yes i know alot of trucks will beat that but some will do worse !  Plus 1.10 per mile which is 2.20 with bounce home this formula has been basically what everyone was else was useing for a basic full rate till this year it seems to me that right now people think our inputs have gone down but i sure havent seen it in my operation ! Just wanted to know what others thought it cost them to operate profitably lol loose term i know!  

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Posted Mon, Sep 07 2009 11:38 AM CST
M S M
Posts: 17

Wouldn't it be much simpler to actually take your true CPM fo the truck add your fuel cost and the wages you need to make and add a 15% cusion. Folks basing fuel cost at three times may work for you for only so long unless like the CA post, your sitting in a high fuel area. Hourly works great if your on a basic round that doens't very much, but I do know alot of guys who sat trucks down for extended periods of time because the hourly didn't pencil any longer. The longer you sit the higher your cost are. Simple math shows your base at your average miles with all your truck costs( IRP, insurance, cargo and maint. costs). Then add your fuel cost and and wages based on your miles (base it on the miles you want to run not the extra 3500 a month because it was not forcasted). Then add your cusion of 10, 15 or 20% so you know when your grabbing loads to keep your averages, just what you can do and not do.

Although it is harder to do when the market is flooded with cheap loads. Over my 15 years, there has always been a new guy plague charging less or the letts make a deal buyer. Now the way I see it, my investment for equipment isn't less than the cows. And my maint. isn't less than the feeding operation. The kill plant has me beat on investment price, but the laws to operate aren't much less of a hassle. Long and short is without the trucks, the cycle stops there. Keep them trucks running right and everyone gets paid and looks at next years business. 

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Posted Tue, Sep 08 2009 02:15 AM CST
MARLYN
Posts: 17

I've been at a buck above fuel  ex  {.50 mile fuel +1.00 =1.50 x2 = 3.00 loaded then prorate if heavy } that worked on avg for me in the past if the buyer is a pain in the butt or just a screwed up deal then add more for putting up with it .   But know matter what you bid  some one will undercut it  lol .  goodluck and happy truck'n.

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Posted Thu, Jan 21 2010 04:14 AM CST
BRUCE WRIGHT
Posts: 24

Ok , say your base rate is 3.00 . on a 50,000# load . How do you figure your pro-rate on a heavy load (ie 60,000)?

Who do you guys figure your pasture hauls , those that are under 150 miles ? We use hourly , cause you usally have a lot of dicking around time with sorts and B.S. like that . Thanks

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Posted Fri, Jan 22 2010 12:47 AM CST
CHRIS FIX
Posts: 9
Originally Posted by: BRUCE WRIGHT
Quote: "Ok , say your base rate is 3.00 . on a 50,000# load . How do you figure your pro-rate on a heavy load (ie 60,000)? Who do you guys figure your pasture hauls , those that are under 150 miles ? We use hourly , cause you usally have a lot of dicking around time with sorts and B.S. like that . Thanks"

This is how I prorate: rate per mile times number of miles divide by 500 equals cost per hundred weight.  Take your weight divide by 100 and take that number times cost per hundred equals total bill. 

For example: 400 loaded miles, 60,000 pound load, $3.00 per mile base rate.  400 miles times $3.00 per mile = $1200.00 divide by 500 = $2.40 per hundred pounds.  60,000 pounds divide by 100 = 600 times $2.40 per hundred = $1440.00 total bill.  Hope that makes sense.

For pasture loads this year I am doing $4.00 per mile plus $100.00 to load.  Sounds like a lot but when you figure your time and shotty loading facilities and bouncing around a pasture I think it is fair and have never had a customer complain about the bill. 

For loads under 150 miles from a sale barn out to a ranch I use a flat $4.00 per mile at the moment unless there are more than 2 sorts or it is a super heavy load or it is a real pain in the rear place or something like that.  Anything over 150 miles I use my regular base rate plus prorate over 50,000 pounds.  Hope this helps.

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Posted Thu, Feb 04 2010 09:17 AM CST
,

Posts: 2

i dont even bother with all that crap. a straight 2.00 across the board. anything anywhere. and thats 2.00 loaded mile c"monnnnn.

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Posted Tue, Feb 09 2010 09:04 AM CST

Posts: 17

I AGREE THATS THE EASIEST WAY TO DO IT. THEN UR ALWAYS MAKING THE SAME. NO MATTER WHAT OR WHERE UR HAULING IT.

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Posted Fri, Sep 03 2010 07:52 AM CST
EDDIE WILKINSON
Posts: 6
good lord 2.00 a mile. why dont ya just say, pay me what you want to. oh and by the way i dont really need fuel,tires,oil changes,overweight permits,authority,or any other kind of thing that COST me to run .it siunds like a buyer posted this REPLY REPLY WITH QUOTE
Posted Sat, Sep 04 2010 05:56 AM CST
JIM SWEETS
Posts: 4
Originally Posted by: USER DELETED
Quote: "i dont even bother with all that crap. a straight 2.00 across the board. anything anywhere. and thats 2.00 loaded mile c"monnnnn."

How bout I park my trucks and let you haul all my loads at 2.00 loaded mile.  While you last I can save a bunch.

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Posted Sun, Sep 05 2010 12:36 AM CST
MARV MULDER
Posts: 4

this is the way i was taught . base rate divided by 50,000 and then take that number times the weight you loaded and that will give you the rate per mile. its real easy and that way you have the rate if you run over 50,000pds in the box. good luck

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Posted Thu, Sep 09 2010 04:20 AM CST
TRENT HERD
Posts: 3

how much do you think loads out west are worth i had a guy offer me 1.80 pm to cali back to tx and then back to cali that seemed really low to me but maybe yall know more about it im not much of a long hauler

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Posted Fri, Oct 01 2010 01:10 AM CST
TRENT HERD
Posts: 3
Originally Posted by: JIM SWEETS
Quote: "How bout I park my trucks and let you haul all my loads at 2.00 loaded mile.  While you last I can save a bunch."

i second that

 

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