BACKLOADS & HOTSHOTS

Jim, why does the mileage matter on a backload? Surely it’s just the ‘extra’ mileage that matters?

Posted under Courier and Freight Exchanges, Courier Basics

Posted by Alec at 4:43 pm, February 1, 2007

4 Comments so far

  1. Alec added on  February 1st, 2007 at 17:22

    Sorry Jim I misunderstood you first time round. I see what you were getting at now.

    Stupid to drive past it though if it makes you a profit on your journey home.

  2. Alec added on  February 1st, 2007 at 18:11

    No problem with that Jeremy, it’s people who want ‘their’ full rate for what is (to them) a backload that I don’t understand. The ‘urgency’ of the job means nothing. All the ‘seller’ is actually interested in is “How much will it cost me to get this job done properly and within my delivery criteria” (trust me, you might not use those words when you’re thinking but that’s what you mean).

  3. Alec added on  February 1st, 2007 at 18:22

    I’ve always thought of myself as much as an owner-driver as a controller/manager/whatever and I know that if I was in Scotland and someone offered me £50 for a delivery from Hamilton to Manchester then I’d jump at it. It’s almost pure profit and if it happened every time you went out you’d be over £10K better off at the end of the year. The only way it will happen anywhere near every time is if you look at each ‘deal’ from both sides.

    Why would anyone expect to be paid full rate just because a job is urgent? If your normal rate is 65p/lm and you’re offered a job that is substantially made up of the dead return miles that you’ve already been paid for then aren’t you actually taking the p**s if you want anything approaching full rate for it? Surely, out of fairness, you shouldn’t be looking to make more profit out of a backload than you did out of the original job?

    As for ‘greedy people’; there’s plenty of companies on here only making a 15% margin on an average ‘hotshot’ that they sub out to their own ‘in house’ owner-drivers at 60p/mile. If they sub out a job at that rate as a return load then the o/d makes a 95% profit while they make 15%. Is that fair?

    Here’s something to think about:

    An owner-driver does a 200 mile job for £130. That’s 8 hours work, 1 day’s fixed costs and 415 miles of fuel, maintenance & depreciation costs. Say £60 costs if he’s VAT registered. So say £70 profit for 8 hours’ work, or £8.75/hr. If he then takes another 200 mile job heading back home, that adds an hour to his day and costs him £5 in fuel, maintenance & depreciation then the job stands him £14. How does that equate to a mileage rate?

    One of my favourite Jean Paul Getty quotes is: “My father said: “You must never try to make all the money that’s in a deal. Let the other fellow make some money too, because if you have a reputation for always making all the money, you won’t have many deals.” “.

    Think about it – it works both ways.

  4. Alec added on  February 1st, 2007 at 19:02

    Do you really say that Mark? I generally tell the customer that I’m going to a dinner-dance that evening and that their urgent delivery will have to wait until Monday.

    Or “sorry, I’ve had a great week and I’m just off for a round of golf. ”

    “Or “It’s Friday so it’s going to cost you more.”

    Or “sorry, I’ve got to take the [wife, cat, kids, dog, goldfish, van] to the [vet’s, hospital, school, Bahamas, garage, funeral, doctor’s].

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