Trucking: pricing, trucking business, business thanks


Question
being new to the trucking business, I'm struggling with determining what is a fair price when booking through a broker.  Is there an average range per mile?  we are running west/east coast and I've been quoted $4600 for CA to NY...do you have some suggestions on negotiating and pricing the runs?  the same broker gave me $3700 from CA to TN and $2200 for CA to Amarillo, TX...and then told me I could expect anything around $1.65/mile, thought I read somewhere in your answers it should be closer to $1.95?

You guys who answer these questions have been a great help to us newbies (is there a trucking term for new guys in the business?).  Thanks again, we appreciate it!!

Answer
Paul, if I were in your position I would subscribe to an online data service that collects and publishes rate data.  I use www.truckloadrate.com but there are others.  Today for example they are quoting LA to NYC at 1.41/mile (range 1.32 - 1.50) plus FSC @.32/mile or an average of $4882 all in.  Two things to consider: 1) there is always a premium to go into the city. Western PA or Upstate NY may pay less because of the easier delivery.  2) the Brokers markup is generally going to add 25% to what he pays the carrier, so if he charges the customer $4800 he will pay the carrier something closer to $3840.   Some of the other websites that cater to brokers will likely show a lower average rate because of this.  The best thing is to find a few good brokers that you can trust and try a few different online services until you find one that you are comfortable with and then the longer you work the market the better feel you will get for it.  Hope this helps a little.