Advice Needed Please

Hey EzyLivin,
Welcome to the forum, I run a small transport business carting mostly mining Equipment for projects and Engineering. I use on many occasions FH460- FH660 Vovo's ( Volvo's) I average in a Bogie Tri setup around 22 litres per 100kms. My average weight is qround 15 - 20 tonne. On a few occasions I have used a Hino Rigid with a 9meter tray, It was around 19 litres per 100kms. I was impressed with the driver comfort, features and the power to climb hills. I would agree with Kenny Mopar.. The Japs have the market sown up.

Hope that helps.
Kenny

another thing you dont need to buy new? ..a well looked after 2ndhand truck will save you $$ .. when i was working as a diesel mechanic the Jap trucks with a very hard driver that gave them sh!t would still do 500.000kms before the engine would need a rebuild..most will easily see 700.000kms if looked after

Hey EzyLivin,
Welcome to the forum, I run a small transport business carting mostly mining Equipment for projects and Engineering. I use on many occasions FH460- FH660 Vovo's ( Volvo's) I average in a Bogie Tri setup around 22 litres per 100kms. My average weight is qround 15 - 20 tonne. On a few occasions I have used a Hino Rigid with a 9meter tray, It was around 19 litres per 100kms. I was impressed with the driver comfort, features and the power to climb hills. I would agree with Kenny Mopar.. The Japs have the market sown up.

Hope that helps.
Kenny

Kenny, that's seriously GOOD fuel economy. That equates to 4.54km/Litre.
My singles trucks grossing 40+ tonne & 4.6M. high. average 2.3km/litre.

I'm envious

Yeah, i agree, i would probably have to go second hand if i was buying the truck, but at the moment i might just lease one to begin with. That way if after a year, things dont turn out i can call it quits, but if things do then we can restructure. Maybe move up to getting a real truck, or stick with the same.

I have a feeling that, its either going to be no work, or its going to be heaps. Its just no one is interested in us at the moment. I know for a fact, that the prices i have come up with are well under everyone else. For example, i was quoted by 4 companies, over $400 to get a pallet of goods freighted to were i live from the nearest capital city.

3 Pallets was $1200-$1400. Total weight 500kg.

Is that normal or extremely pricey?

Prices i come up with was $700.

Hey Hay seed, They are good figures, I had to check them twice the firt time, I put it down to the fact the loads are light and the truck is hardly working.

Ezy living,
One thing I learnt is dont sell yourself too cheap, the big guys when they flex there muscle will squash you, they can last longer at lower freight charges. If you have had a quote already I would go in about 10-20% less than that for a start.
Reason is if you get stuck and cant keep up with the work you can subbie out. Its not what you know its who you know...
Over in the west work is going silly at the moment, you just cant get a trailer or rigid on short notice, they are all booked.
How far to the nearest capital city? I found $400 per cubic meter for long distance was on par.

Cheers
Kenny

Hey Kenny, it's about 2500kms mate. So I guess they are on the money, if that's the case then I am amazed.

I will have a look over my prices and adjust I reckon.

I just re read you response, $400 per cubic metre, wowsers! My quotes were for 3 pallets at different weights but all 1.2x1.2x2.5H.

Not only am I envious of your Fuel economy.

I'm extremely envious of the Freight rates you're talking about.

No Mining Boom in My neck of the Woods :'(

Why would you need to cut the guts out of a rate!

I would assume that rate has been set in order to run some sort of feasible transport business..

All the best preparations along with, book keepers, accountants, bank managers, logistics managers and who ever else costs money along the way, are not going to make any difference whatsoever if you have not got a reliable and continuing source of income.
In this case, road freight...yes its out there..
Entering in to a business with new gear and a 10 -20 percent rate cut, will see you where a lot of others are already...Broke!
If you feel the need to be self employed, why not enter the game with a service that others may be struggling to provide?
Raise the standard of service, become known for your expertise..

Some blokes are running a fine line to exist now...
Don't make it any harder for the industry as a whole.

That will be some of the best advice you will receive for free....

chocs

As a small one truck and dog operator, I would definately agree with what Chocs said. Offer a relable freindly service without cuttin the rates, dont be scared to make a healthy profit as at some point down the track you will need it. Work closely with your accountant , a good one may seem costly but they can save you in the long run. Having and understanding a good accounting software package can save you a lot of time and money, most good accountants will put you in the right direction there. Communication with your clients is hugely important, if you have a breakdown or a problem always be up front and honest, most people are fine with a problem if they are informed and kept in the loop.
Just my cupla bobs werth
All the best with the new venture

Hayseed, Thats what I was charged to bring gear accross the paddock, I was told by a few friends in the game that that was a reasonable price for east west.

Ezy livin
Chocs is on the money, I originally started offering an Engineering service but was asked for transport more then onsite Engineering so went that way for now, I learnt the hard way but I was lucky as I had some contacts and the knowledge of good friends in the industry.
As Fuller said the service is a big big part.
I spent a lot of time working out exactly what it cost me to run the vehicle and what the competition was asking, I noticed the work didnt flow steadily, there were gaps between jobs some times a couple of months and this is where my margine is used, I utilise the down time to catch up on non critical maintenance I could not justify whilst busy and do some Engineering. I have been lucky to an extent I have an engineering back ground and do most of the work myself, this saves me a fortune.

A good regular contract is what you need to find.

Anyhow you have a wealth of knowledge availabe from many of the well experienced fellas on this forum.
I always look forward to reading the many posts and one day look forward to meeting the legends who have posted them on a club run.

Take care and good luck.
Kenny