Local Dedicated Milk Runs

M

mac

Member
Oct 8, 2010
36
8
8
5
Hello:

I'm just looking to get insiders opinions on local Ontario dedicated milk runs. We are a short haul Ontario based carrier that specializes in LTL and truckload. We also do "milk runs" for a couple of customers but I'm not sure that they make enough money. My boss likes them as they keep the trucks busy but just because the truck is busy doesn't mean it's worth it. What would you guys charge per hour for the use of a daycab, dry van trailer and driver to do various deliveries all day long. Any thoughts or experiences would be appreciated.
 
Mac,

It depends if the service is exclusive (ie dedicated where the customer is using it all the time) or transactional (where the customer pays only by the order and has no volume commitment to offer you).

The magic number for gross revenue on that combination is about $750 per day or so.
 
theman said:
Mac,

It depends if the service is exclusive (ie dedicated where the customer is using it all the time) or transactional (where the customer pays only by the order and has no volume commitment to offer you).

The magic number for gross revenue on that combination is about $750 per day or so.
Click to expand...

With reefers and bunk trucks we look for an average of $1,250.00 per 12 hour shift. I suspect your $750, although maybe a little light, is probably fairly close.

Mac, don't forget to add in profit as an expense when you run your numbers.
 
It's for dry van, day cab and running company drivers on a 9-10 hour shift. It's for local runs ... won't work on anything that requires the driver to be away at night.

I believe that on long haul we look for a monthly revenue between $18-$20K as the sweet spot.
 
You must log in or register to reply here.
Top Bottom