Why is it so hard to make money as a independent?

There is a huge difference between grossing a lot of $$$, and netting a lot of $$$. Not hard to have a high gross, can be tough to keep some of it.
A successful O/O has to work hard, THINK for themselves, plan ahead, be willing to sacrifice at times, have a good book - keeper, a head for business,learn to network, the list goes on.
There are good O/O jobs around. There are bad O/O jobs also.
There can be a huge difference between being an independent and being an O/O leased to a carrier. I suggest first being a lease operator, and learn a little about the business before going completely out on your own.It can be lonely at first.
There can be a good living made as an independent O/O, if you want to work, have a good head for business, and just a little luck.

 

My take on it is this. It's a fairly easy business to get into which is good and bad. The bad is that there is a good chance that a lot of people don't have a strong business plan which can lead to failure. I don't think many people figure in all the costs. When I say costs I'm including a healthy maintenance fund, health care for you and your family, taxes, rising insurance premiums etc. Stuff like only looking at your loaded miles instead of hub miles when calculating revenue is another mistake. I saw somewhere recently where a guy was bragging about his operating costs being something like 86 cents a mile. I find that hard to believe. Says he can pull refer loads for $1.45 a mile and make money because his truck is paid for. This kind of stuff leads to catastrophic results. You can still make good money as an independent if you have done your homework and seriously considered these things.

 

There are a lot of dumb truck drivers out there, and that is what they are, truck drivers. Those guys need to stay company drivers because they don't have the book smarts to run a company.

Most people think oh, I'm not making enough money to pay the bills, I need to drive more miles. I hear this so many times I just want to bash my head against the wall!! How about increasing revenue and lowering your operating cost.

Guys like to say, I need a long run to make the big money. Well those long runs cost a lot of fuel, and I see a lot of guys hammer down passing me all the time, thinking they gotta get there to get the next big load. Meanwhile all their profits are blowing out the stack.

Let's face it, any moron can pick up a load of widgets and take it from point A to point B, you're one notch above a trained monkey. By the looks of it at the trucks stops, some may be one notch below.

What you need to do is find your niche and specialize, get your own customers and contacts. Once you have done that, you will see how your company can afford all those benefits they shower you with. You will also see how much money they were making off your back!!

OK, that's my rant for the day, I'm done.

 

You hear bad about LEASE/PURCHASE plans from me.The company leases you a truck, charge you a fee, and you haul their freight, at their direction. I find them heavily weighted in favor of the companies that offer them.
There are some pure lease plans, where you purchase a truck, finance it yourself, then lease it on to a company. You have more choices to make in the loads, and you have more room to make decisions.SOME of these can be profitable.
My thought is to start in the lease / operator, and learn the business as you go. Then go independent, after having learned some business skills.As stated before, find a niche, get your customers, and think like a business man.

 

So many fail because they can't get past the company driver mentality.

 

Many drivers can drive, but they cannot operate a calculator. If you don't know ALL of your costs, accurately, your chances of success are slim.

 

I disagree that it is difficult to make money as an independent. Some independents do very well. Whether you own a retail store or a trucking company, not everyone will be successful. Some people have a natural ability to run a business, but most don't. You don't need to be an independent or own a truck to be successful. There are many company drivers whom I would consider being successful. I think most company drivers want to become an owner operator and some would like to get their authority and become independent. Being independent means greater responsibility. You are not only responsible for keeping up your equipment and making the payments (if you are financing your equipment), but you are also responsible for finding loads, driving and delivering, billing and collecting your money. Negotiating for the best rates is a critical aspect of being successful as an independent. Knowing your best lanes and freight trends is also helpful. Many owner operators and independents make the mistake of running where they want rather than what is best for their business. Those of us who run our companies like a business are those who make a good living. The ones who don't are the ones you often hear about who lose their equipment, home and pretty much everything they own. Some company drivers have a difficult time transitioning from being a company driver to running their own business.