What is a realistic monthly net for an o/o?

4-5K is good if you are leased on to someone. Being Independent you would want to look at 7k minimum. But CA is a different beast. In '06 when I was in CA I could not justify going O/O and I had great contacts in Salinas.

 

I'm no expert on anything, just ask my wife. But I will share with you what I would expect to gross based on my research. With my own authority, 2000 miles a week loaded and 300 empty, 6 - 8 year old equipment with payments (replacement if no payments), van operation and 48 weeks a year about $218,000. And that will be after I get practice at finding loads and the other tasks I have no experience at. If I leased to Landstar, I would expect the same gross but would run 2500 - 2600 miles a week for 50 weeks out of the year. I need more miles if I use their trailer which, could lead to drop and hook opportunities.

I have to admit I am an expert at padding my numbers so I can insure I meet my projections. That said I have included an ample maintenance/repair/tire escrow fund and taxes. I haven't finished crunching the numbers for a lease, so I cannot offer net projections on that.

For my own authority here are my projections. I have covered social security, workman's comp and health insurance. The daily living costs on the road come out of the truck money. I'm paying myself net wages of $42,000, which would be equal to about $53,000 gross. My wages, Per Diem, Social Security/Medicare, health insurance, state and local taxes and workmen's comp are almost $57,000. I expect to have $7,600 annually (2.5 years) to repay my initial cash investment of $17,000. The truck and trailer are financed for 2.5 years. The replacement money has to come from running after the payoff. This leaves me $22,000 a year profit, if I don't haul cheap freight and keep deadhead below 15%.

So if you add it all up, it's about $72,000 net after expenses and taxes against a gross of $218,000 or about 33%.

If I haul cheap freight or pick my lanes poorly, I'll lose the entire profit in a heartbeat. If I lose 0.25 CPM of my calculated loaded and empty mile average rate of 1.98 CPM for a rate of 1.73 CPM, the profit disappears and the net becomes $51,000 against a gross of $218,000 or 23%.

If I keep my rates up with wise choices and add 400 miles a week, the CPM will change and profits will increase nicely. Driver $50,000, investment payback $7,600, profit $33,000 for a total net of $91,000 against a gross of $262,000 or 35%.

 

BBBill is one of the great success stories. I hope to follow in his footsteps.

 

You should be an accountant. Not s
Trucker. Just saying

 

But it's not as much fun!

I wish I would have realized my God given skills with numbers sooner. Oh well, I'd probably be in the cell next to Madoff or some other swindler. I can make numbers say whatever you order. The hardest thing for me is doing an objective analysis. I usually have more padding built-in than even I realize.

 

Gotta good laugh on this one. Thanks. But think that is a little early. Until I have some more time and more trucks running under my authority I am not going to claim anything like a success. While this week is ridiculously good I just came off of two weeks that combined net was $800. Granted one of those weeks I lost 2-days with the purchase of a new trailer and then tried something new that was a nightmare.

 

I'm seeing a lot of burned out O/O in their 50's & 60's with beat up
worn out condos stealing local work from company drivers just to
get off the road.
I have no idea what's up with that or how much they make.
It can't be much since they are out bidding a company guy
who makes next to nothing at many places.
Sign of the times I guess.

 

What a company guy makes and what the shipper pays are miles apart. So the O/O that is looking for a more regular schedule can make equal or better money by doing this. If I bought two more vans to do drop and hook I could get a couple good paying accounts, be home most nights and clear $70-80k a year. But that is not the business I am in and not the type of work that I am interested in doing.