Is owning more than one tractor and then contracting with the big boys profitable?

You ain't going to run 5500 miles a week.
The reason they will not talk to you is because they know it will probably not work. Too many have tried it before you, and the companies have seen the outcome.

 

Some weeks you can / will run 5500 miles. but you will not average a 5500 mile week over a years time. New o / operators fail to account for down time due to weather , break-downs , sloooooooooow freight, sick drivers , etc.
Sure, they will tell you it will work. It's not their money to lose.
I can make ANYTHING work out on paper. Not so in the real world where Mr.Murphy's Law is the determining factor.
Go ahead, try it. It is possible, but not probable to make it profitable.

 

Eric, it is frustrating to read this stuff because you and many others are doing this all backwards - of course you can make money, I am and I know a lot of people who do but we all understand you just can't stick drivers in a truck and expect them to work.

It takes a lot of planning and a lot of thought into what the structure is going to be and how it is managed.

You got a lot to learn about the managing part of it. reading your post it is clear that you are looking at the best case scenarios and not taking in account of a lot of variables like how will you plan your parts replacement, there are several ways to do this, like for tires. Depreciation and life expectancy of the trucks/trailers and so on all matter. Cost of ownership has something to do with it too. My cpa has a report where she can show me what I do may be bad or good for me in the long run, but I also have a CPA that has zero to do with trucking and everything to do with small business.

You mentioned 1099, you may not understand what that means. one thing is I don't pay for my driver's workers comp when they are contractors, that's their responsibility. I compensate them for the added expense but not pay for it. The same goes with how you manage the drivers, they as 1099 drivers can refuse a load or loads, and you can't do a thing about it - they are in charge of that truck, not you. You also can't force them to do other things unless it is spelled out in the contract you have. lumping, simple maintenance and so on all has to be talked about.

You also have to think about other things like the contracts, you are not employing drivers, you can't with a 1099. YOU are contracting them to do a job with an open ended contract. Did you consider the cost of writing that contract? I never advise using an internet contract, my lawyer has ripped an owner apart for his use of one a while ago, cost this owner a lot of money in defense and the drivers got the money they deserved plus compensation for their time, and of course the owner had to pay the lawyer's fees - he got it off the internet.

 

Eric, not sure if you're a troll or haven't thought this trough. Your model is wrong on two major points right off the bat:

1/ a driver that works for you, in your equipment, driving where you direct, is an employee - W-2 and not 1099.

2/ 5500 miles a week is not impossible, but highly improbable and would require either speeding so often and so fast that the truck would never make the miles because of the traffic stops it would get; or you intend to have your driver commit HOS violations galore. Neither is a good business model.

Try your numbers with 3000 miles a week, and a W-2 employee.

 

If you want 5500 miles a week you'd better have a teat in the truck splitting pay or be running cattle. 5500 a week on the freighT side is realay high. Way high with e logs and a fuel card that'll be time stamped. Many people buy trucks like what you're talking about put drivers in them and lease them to companies what it takes is finding a company looking for FLEET OWNERS. But unless youse teaming refuse your miles down to 3000-3400 max.

 

It will be hard to retain a better class of driver with 1099's, I have found.Most will want some type of benefits also.