Hotshot Connect Forum :: MY FIRST MONTH IN BUSINESS IN DOLLARS AND CENTS.

Phil

Well on the 13th of March I will have been in business for 1 month. I have been posting all of the information that I have found out, so I thought that I would post what happened in my first month on the road in dollars and cents. Now I travel with my soon to be wife, so my lifestyle on the road is a little different than alot of guys, but I wouldnt have it any other way. If I were by myself I would sleep in the truck more than I do. On the food end though, we only seem to eat once a day, sometimes twice. Well here are the numbers for those of you thinking about getting into "hotshot'n"
I am posting everything that I made, however alot of companies dont pay for 30-40 days, so I havent actually recieved all or even most of the money.
Total my truck and trailer grossed = $12,290.00
Keep in mind when I started, freight was very slow.
Total broker fees = $1229.00, 10%
I pay my broker when I actually get payed, so I havent payed all of this yet but I do owe it.
Total fuel = $3130.89 I hear fuel prices are going to rise. ouch!
Total motel = $1497.96 (two poeple, and sleeping in the truck 1-2 times a week)
Total food = $331.58
Total misc = $944.05 (includes oil changes, truck and trailer washing, and parts and repairs. $550 was for getting cracks on the trailer welded)
So I put $5156.13 in the bank. Now Monday I will more than likely get loaded and unload Tuesday for another thousand or so, but this is pretty close. This is the only time that I am going to discuss the money side of things, because I can tell buy the way that things are going that it only gets better. I am making more money now than I was running a building materials store in AZ, and I do not have a boss. So there you have it. I hope to cut some expenses and become a smarter business person, and after all is said and done its really worth it to me, I am happy! Exclamation

mhlogistics

Phils been doing an outstanding job. Some guys have a tuff first few months learning how this business works. Not Phil he's been motoring right along without missing a beat.

And it's still very slow right now. this is the time of year when freight really starts to pick up. My only concern is that with fuel rising it can affect the rates. W're still seeing low rates when they should already be going up. We'll just have to see how it goes.

I don't know whats happening in Texas, this is the worst I've seen it down there. I have a few trucks down there and haven't been able to find anything at all. Hopefully this next week Texas will kick into high gear.

LBZ

Phil,

Great info and glad you shared it! After one see's all the set up expenses it is good to see that there is income on the other side of all the out go....

mhlogistics

Phils in Reno today. He already unloaded this morning and he's reloading right now.

This morning has been pretty good so far, we've loaded several trucks before noon. All of them at decent rates.

TGPILOT

Phil, like you, I will only mention money once. Hopefully this will give you and others encourgement.

In about two weeks time, between Gary loading us and a company that we pull for out of FL. We have grossed about thirteen thousand or a bit more. For us, this is a bit low. Last year one good week for us was twelve thousand. So, this being said, you and others can do well.

For me, it's having the 53' step-deck by Hefty and the way I had it built. Gary as you know is a great guy to work with. He likes to eat, so that means he keeps you running so that you can make money, and of course him. Gotta keep him from writing his life story with his new computer though.

Point in this thread, it to say that even with freight slow and low on pay. You can make money. Good luck to all.

Tom

terry

Phil, I'm glad to here that your business is doing well and your enjoying the open road with no boss dosn't get any better than that Enjoy your new adventure.

mhlogistics

Hey Terry I'm sure phil would comment if he could but he ran off this week and left his laptop at home. I loaded him today out of WA heading to CA. He probably won't be able to check in here until he gets back by the house.

plsiskin

I know this post is old but I am new to the forum. Can anyone shed light on the rates you are getting ( local and long haul )? I have a trucking company that I bill on the job or the hour. I know a lot of hauls bill per mile. I was quoted on light freight at around $1.65 per mile. This is for a rig and flatbed not a hotshot dually type job. Just curious what types of jopbs and payment you all are seeing.

Thanks

mhlogistics

Our average length of haul is about 1100 miles. Our loads consist of mostly multiple pick and drop LTL freight with an occasional car in the mix. Our rates fluctuate from $1.40 on up to $3.00 a mile. Sometimes it can go higher, it just depends on what you have on, and where your going with it.

Hope that helps.

bth9461

Rates? All over the place, in my experience.

Cars for an open trailer are paying around .50-.65 pm on Central Dispatch the past month or so. Some cars have been really low .19-.45 pm. Region makes a difference to, going into FL is real cheap the past couple of months. A good rate is .70-.90 but not many of them these days. If you can make a direct deal that can help some, depending on the customer, I usually bid a 1.00 pm, but most won't take it. I figure if I cut the broker rate though and bid cheap it will only cause the brokers to lower their prices. With these falling rates though I might have to bid cars at .80-.90 pm.

LTL's anything from .25 to 1.75 pm it really is all over the place. Longer runs equal lower rates most of the time. 200-1000 miles seem to give the best LTL rates. How much trailer is needed makes a difference, a single pallet is usually only going to give you under .50 pm rate. I have a good customer that I was getting 2.40 pm for 40' and 13k weight loads. I recently had to lower the rate to 2.25 pm to stay in the market.

Lower fuel prices and lower shipping tonnage, is forcing rates down. Too many trucks for too little freight, is hurting the rates.

Last week I hauled LTL's out, cars back, $2919 on 2246 miles = 1.313 PM for ALL MILES driven, including dead head. This included driving 115 miles to my first pick and coming home 114 miles after my last drop.

My LTL's $775 on 700 miles 16' 4500 lbs no tarp, $850 on 650 miles 6' 1000 lbs tarp, and $320 on 400 miles 4' 4500 lbs tarp, both tarp job were easy jobs. Brought back a F450 $350 on 300 miles, then reloaded for home with 2 trucks for McNutt .77 pm each total was $624 on about 710 miles for the 2picks/2drops.

Look at the good rates I had for each load, but DHing really takes the ALL MILE rate down. Most of this year my All Mile rate has been in the 1.50-1.70 PM, 40' deck 15k capacity. All my stops were mostly along the way, but each stop does add some DHing, and some miles are not technically DHing because the freight is on the trailer. But when you piece together cars and LTL's it does cost you some extra miles. If I hauled some cheaper frieght say take 25% off the gross $2189 on 2246 mils = .974 PM all mile rate.

I expect rates to continue to fall, until they drive more trucks off the road. When the market bottoms out or is close to the bottom is the time to get in. You can jump in now, but if you have no reserves you will have a hard time surviving the startup period. Unless you have some good dedicated freight or some help finding good loads.

Keep in mind if you put your own money into this, if it does not go well, it is your money going down the drain. Wether running on your own authority or leasing on to someone else. If the freights not there, its on you to survive tough times.

Don't forget the OBAMA FACTOR also. Or the economy in general right now.

Brian

P.S. I drive less than some, home every weekend 2000-2500 per week. You can change your total gross by staying out 3-4 weeks and taking the best available frieght and blowing with the winds for a few weeks, and learning the good freight lanes. I was about 1.90 PM (ALL MILE rate) with my outgoing LTL's from MI to NJ. My family limitations hold me back so, it is possible to do better. My best week was 5k this year on about 3k miles, worst was about 2k on 2k miles. Did have one really profitable week too, 4k on 2k miles 3 nights out. Had a 3.50 pm return load that week.