Starting up pros cons and rates

KWN86:

coiler:

Mattwoodtransport:

KWN86:
My post might seem stupid but as I enquired about sub work for maritime they have sent me this subbie pack and they’re offering whopping 1.40 a mile I’m running the numbers read number of posts and hardly ever anyone is saying that running a truck on those kind of rates is possible so I’m just trying to work out what is the real deal I know it’s not like I will be a millionaire in a month or even a year but I can’t be this hard to make some money since there are lots of transport companies and more opening every day. I was also thinking of subbing for Gregory’s what’s that like.

You need to be doubling your rates mate. Head for 3k a week turnover. 500/600 a day, based on runs 120 miles away and backload.

Sounds like good advice to me, aim for £3k per week depending on your mileage/fuel use. You’ll struggle big time on £1.40 per mile

Any traction only subbing work is paid at anything between £1.35 to £1.50 per mile. You will have little, or any say in what the rates are. If you are able to find your own direct work then you need to know how to properly cost out a quotation. Rate per mile is only a guide, it’s how you arrive at your rate per mile that is key. It’s not enough quoting say £500 for a 200 miles job if it takes 4 hours to load and 3 hours to tip. Where is your back load coming from? How far will you have to run empty to get it? Your back load rate will be 50 to 60% of your outbound load if you’re lucky.

Having written that no matter how carefully you do your costings it isn’t an exact science. There are so many unforeseen variables that come into it, so you have to build in some slack to take account of those. For example, I had to have new landing legs fitted to a trailer yesterday, the trailer is less than three years old so it shouldn’t need new legs with general wear and tear and age. But someone had dropped it (loaded) heavily, hence the damage.

If you do go ahead it will be madness to start with three trucks, and all the hassle that entails if you are a new start up business. Start with one and see how it goes. Whatever cash reserve you think you will need to get going and cover your first six months, then double it. Also remember that the first three months of any New Year are dire from a work point of view, 2020 could be even more dire than usual depending on the result of the General Election and Brexit, if it happens. Finally, without wishing to dissuade you, this year so far four owner-drivers I have known for a long time, and have been ODs for a long time, have gone back to being employed drivers. Same sentiments as Harry Monk wrote earlier, no money in it, expensive repairs on modern technologically complex trucks, cannot afford replacements, etc. not worth the hassle and worry.