# What are you charging for delivery?



## TooFast4U (Aug 5, 2008)

Most of our small squares are sold within 100 miles of here, and most of it is picked up by the buyer or their hired hauler. But we do a few more local deliveries (usually within 50 miles) on a gooseneck trailer hauling 175 bales per load.

But I always have trouble figuring out how much to charge, partly because it never seems like enough for the labor/fuel/equipment costs involved, yet it usually sounds high to the buyer. I think last year we charged about $100 per load, hauled 45 miles (one way).

But to load, tie down, haul, untie, unload, and return takes two people almost 4 hours--and that's without any problems, like a flat tire! Even at $8 - $10 per hour, labor costs between $60 and $80...which doesn't leave much for truck/trailer/fuel/oil/insurance/etc.

I know hauling 175 bales isn't efficient--cost per mile and per hour are just plain going to be high--but lots of my customers are only looking for 100 - 300 bales and can't take a semi load anyway.


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## prairie (Jun 20, 2008)

We run a seed business and have a Ford F550 4x4, (19500#GVW), with a tandem axle dually trailer, (20,000#GVW). We can legally gross 39,500 lbs, and haul about 21,500 lbs of cargo, almost half a semi load.

I figure it costs me at least $2.50/loaded mile to break even. Most are fairly short hauls of under 200 miles one way. Thats not making anything on the trucking, just offering a delivery service for my customers.

Most customers seem to think that is to much, but the ones who are good money and time managers almost always have me haul intead of doing it themselves. With todays fuel costs, fewer customers "buck" at delivery charges.

My trucking buddy charges me about $2.50/loaded mile for regional tractor trailer loads, but can haul 42-44,000#, and usually has back hauls lined up.
I think you should get at least $3.00/loaded mile, maybe more. Bull racks are getting $4.50-$5.00/loaded mile.

Hope this gives you some help

Brad


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## TooFast4U (Aug 5, 2008)

prairie said:


> ....Thats not making anything on the trucking, just offering a delivery service for my customers....Brad


That's the way I feel about it: mostly a sideline service that helps me sell the actual hay.

One of our good customers is a physician & his wife. The first year they bought hay from us they decided to haul their own--had a heavy duty pickup, and bought a small trailer--and they hauled about 7 loads of timothy small squares (900 bales)! The next year they hauled fewer, and by the 3rd year they had us deliver all of it....the fun & novelty of the "experience" of hauling their own hay had worn off, and given way to the costs and labor involved.


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## swmnhay (Jun 13, 2008)

$3.00 mile for 10-11 ton load with pickup & gooseneck.If it's under 20 miles I have it figured in to price already.98% of my hay deliveries are under 20 mi.


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## TooFast4U (Aug 5, 2008)

swmnhay said:


> $3.00 mile for 10-11 ton load with pickup & gooseneck.If it's under 20 miles I have it figured in to price already....


Is that for small squares? At 60 pounds, say, your talking about roughly 330 bales +/-. A 30-mile trip at $3.00 per loaded mile would be $90, or under 30 cents/bale--which looks to me like maybe you're getting paid for the haul, but not much for loading/unloading labor....but as you say, you may already have part of that figured into the price of the hay. And it will sure help keep customers happy if your delivered price looks attractive!


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## Production Acres (Jul 29, 2008)

Our trucks come with a piggyback forklift - either a 24' flatbed or a 48' flatbed - we currently charge $3.75/mile. The driver will unload the whole truck for the customer - but no hand labor. 1st hour on delivery is free, every hour thereafter is $50/hour. Hand unloads get 2 people and $50/hour for the unload and stack time only. We charge these flat rates if we haul 2 tons of hay or 23 tons of hay. the more you put on the truck, the cheaper the freight per ton, but my costs are fairly fixed - driver and fuel eat 2/3 of the bill. Sometimes we will cut a little slack on a small load that can go on a 1 ton truck. But here is the reality, Averitt Express quoted me $4.75/mile for a full van load last week to go 250 miles - said it took to long loading and unloading. Eventually got a better quote from another broker, but it was still $3.50, and they have backhauls.


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## swmnhay (Jun 13, 2008)

Large rd bales.Up to 14 bales.Or 5 bales and skidloader to unload for some horse people.Add about $50 extra for that.Put them in feeders or by fence and they feed with pitch fork.Usually I can deliver a load in 1-1.5 hrs.Load,wiegh,deliver,unload.


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