Trucking: Submitting a bid, brokerage service, trucking company

Question
Thanks for getting back to me so quickly.  We would be hiring drivers, since my husband already runs 6 days out of the week.  We are bidding on work with the Postal Service, and they have already given us an estimate of annual miles and hours, and they have also given us the route so I suspect that the work will be pretty steady.  I also think if we bid correctly and play our cards right this first route is just the beginning.  So my question is, how much over operating cost should we expect to receive without bidding too high to scare them off and too low as to not make a profit?
-------------------------
Followup To
Question -
My husband and I operate a small trucking company with our own authority and our own insurance.  We currently own two trucks (one 24' straight, one tractor and 48' trailer, and are expecting to purchase a third within the month. Currently we subcontract through a brokerage service, but now we are ready to start submitting bids to get our own loads without paying the middle man.  The problem is that I'm not sure how low or how high we should be bidding.  Any advice you can give would be appreciated.

Thank you  
Answer -
There are really too many variables but this is basically a supply and demand business.  What kind of cost structure do you have? are you paying drivers to drive your trucks or driving yourself?  Are you looking for regular or scheduled runs? or willing to go wherever the next load is available.  When capacity is tight you can get a good rate but if business slows down and there are trucks avaialable you may have to bid a little lower.  It's all trial and error but the best bet is to have a niche or special service that is in demand and build a regular clientele that will call you first or that you can call on when you need their business.  Sorry I can't be more specific, just try always to cover your out of pocket costs and make a contribution to profit.  Best of luck.  JIM

Answer
If you have accurately calculated your total costs including depreciation to replace the truck down the road and you know what you will need to pay to get and keep good drivers, you only need to figure a reasonable profit margin over fully allocated costs and bid accordingly.  I'm thinking a 10% margin is a reasonable expectation but there are some out there who may slice it thinner.  Price bidding is more of an art than a science so stay in the game.  Find out what the winning bids are going for and be guided accordingly.  If you can get access to historic bid results that would be a great resource to study.  Mail contracts can be a good way to get started.  As you say they are steady.  Find out how fast they pay and make sure you have a cusion in case they are slow paying.  Best of luck.  Jim