How much per mile to make a l/p work?

It doesn't and explains why the small fleets /O/O are struggling. I gave it and honest,hard working shot for 1 1/2 years and the risk does not justify the reward. I had no truck or trailer payment when I started and money in the bank for fuel,incidentals.Before I knew it I was factoring and even taking advances before I got out.The mega's have rewritten the tax laws and compliance and believe me it is all in their favor.

 

Not all owner ops are struggling. Some of us are doing pretty well. That goes for some fleet owners also.

 

Sounds like you weren't cut out to run a business, not everyone is.

 

If the truck is making under $1.50 a mile..you will not make it,L/p`s are geared towards the carrier making money and not you..sad but true,as many before you,including myself have made that stupid mistake

 

Your probably right,but I knew what my cost were and there are several areas of the country where the going rate was less than it cost me to run the road.Jim Park was plum gitty last week when announcing Pam Transport made 1 million dollars on 98 million revenue.Thats a operating ratio of 99+. And that is very common ratio in trucking.The rates are just too low.I had a reefer and found I was spending 20-25 hours a week sitting at docks for no compensation.I never said I flopped,only that the risk wasn't worth the reward.I made a little money,but spent all my time off working on or arranging work to be done on my unit.As I have said before,a truck is more needy than any woman you will ever meet.I am now working for a small fleet owner while we run support and deliver finished goods for his factory.The pay isn't all that great,but when I'm off I can forget about all maintenance issues.But he has made it abundantly clear that the 15 trucks he owns are nothing but a tax write off and he could shut it down and make 1 call to a broker and set up 25 trucks.

 

I do know of a few O/Ops doing pretty good for themselves still,but they have a situation where their truck/trailer is paid off,they keep up on maintaining the equipment very well.They also have built lasting relationships with their shippers,That is a key

 

My fixed cost are 1050.00 a week that includes my child support payments. I avg 900 1200 take home i keep 200.00 back for the IRS. Im make a company driver paycheck after bills are paid . Only difference is i gotta pay my own insurance . But so will company drivers when Obama gets done . Plus ill have a title to the truck if lease completed so far im on track with that. Over all im putting more money in savings than i ever did as a company driver. But downfall is if you get a truck that needs repairs often its not easy putting money in maint account when the trk is spending it faster than your putting it in. This will break you on a lease in a heartbeat. My brother completed a lease got the title went to another company now he home every night . Making more than he ever has. With weekends off he avg. 85.000 take home a yr. After bills are paid. So there are downfalls to a lease but in his case there are rewards for completing them to

 

[QUOTEMy fixed cost are 1050.00 a week that includes my child support payments][/QUOTE]

Never pay child support. In return the government will house and feed you. Plus they will teach you how to make a knife out of almost anything. The State of Missouri also has a diesel mechanics course that they give a the Prison in Cameron, Missouri.


Child support sucks more then the exwife ever did.

 

I have noticed that most companies offer a "walk-a-way" lease which I think contributes to setting one up to fail in a sense. I'll explain, If a person has no sense that failure can occur and there is no sacrifice in your purchase then it can cause one to be less tenacious about working due to the sense of "well, if it doesn't work then no big deal" syndrome, I can just turn it back in. Now, I do think that if a company offers a TRUE lease, which is represented by a $1.oo buy-out then it not only motivates one to work harder but gives one a sense of accomplishment and building a business.

I am unaware of many companies that offer a true lease but I am sure there are some out there. If anyone knows who they are I would be interested in hearing from you. Making an L/P, O/O or any other business work is all about management of that business. If it is a true lease there are multiple benefits of L/P vs. bank loans that is available for tax deductions and write-offs instead of depreciating the equipment.

L/P's will work for anyone who is willing to pay the sacrifice of ownership and do their homework. The trick is no different than succeding in any business, it's based on selling your self and finding the right product, company and knack to win.....

Just my .02

tAc

 

No greater motivator than knowing that $1000 lease payment is due every friday. Even if you sick and unable to work.