I recently discussed this somewhere else but I think it's a good subject to bring up here, I see numerous owner operators running under their own authority throw out there operating numbers showing what they bring in and there rate per mile that number should always be higher then someone leased to a company.
Owner operators have a higher cost of operating then people that are leased to a carrier and must bring in more money I value this cost around $.25/mi but it really honestly should be even higher because the time spent billing paper work phone calls checking the mail ect. Lease guys just scan the paperwork and get a direct deposit once a week or sooner.
lots of guys think they can just go get there numbers and haul loadboard freight and keep 100% of the money but some soon realize that they're not keeping the money they were when leased to a carrier, I pay $10,000 in insurance some pay as low as $4,000 when leased to a carrier, some don't pay for IFTA running under your own you have this cost, even tolls and plates some leased guys don't have this cost, I pay for loadboards stamps paper lots of added cost people never think about even trying to stay DOT compliant as a value drug and alcohol programs or not free.
so if your making $2/mi all miles leased to a carrier you would have to bring in $2.25/mi or more to Bring home the same amount of revenue and work even harder than you do now.
Running under your own authority vs being leased is not always better!!
Discussion in 'Ask An Owner Operator' started by BAYOU, Mar 3, 2015.
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yep sometimes its pointless. like right now I have so much paperwork that I don't have time to go on the road and make money...
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It can also be a great springboard for those who would like to have their own numbers but have never been an owner-operator before. Test the waters under a lease with a company like Landstar or Mercer.
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a lot of times its batter to stay company driver...
lmcclure1220 Thanks this. -
good point, bayou
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I need to go back and fix this I always say I'm going to proof read but something always comes up LOL...
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That is exactly why I stopped running under my authority and leased my power unit to a company, more $ less work. In my experience there was always someone that wanted "my load" to get home on and will run it for $0.80 cpm. Yes I know the broker was lying and yes I know I'm too lazy, hardheaded, inflexible,(choose your own negative nickname) to be a "real" O/O. but I'm ok with that.
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Most people I know that are leased on pay the same money I do and in most cases much more on insurance.
People who are leased on are usually restricted to their companies load board and that's it. I have access to ALL the loads, not just my carrier.
People who are leased on are actually working for that company. They may think they are on their own and calling the shots but their not. Abide by their rules or your gone in a second. They can void your contract any time they want and you sit wherever you are.
So, with that being said, I'm not sure why you started this thread?yotaman, DrtyDiesel, Malta and 3 others Thank this. -
I think his point is most single truck operators under their own authority would be better off leased on somewhere because they are so rediculously cheap and do more harm for everyone out here (rates) than good. There was a fine example of that posted here a few weeks ago. An indy talking about the great money he made at $1.35 a mile, worked 8 hours a day, home every night. There's probably a dozen companies around me I could think of offering the same cheap rate and home time with a lot less expense involved.
Cetane+ Thanks this. -
Hey, Bayou I seen you in the Truckers Paper last month.
BAYOU Thanks this.
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