New owner op tips out of Calgary !

With all due respect, this doesn’t sound like a very good investment strategy for a number of reasons.

Why buy a truck and hire a driver while you remain a company driver for another company? That’s typically not the way owner operators start off. Starting any business is risky, it takes effort and sacrifice; counting on someone from today’s driver pool to make your business a success, is setting yourself up for failure. You need to be the one behind the wheel of that truck doing what’s needed to succeed.

Have you run any numbers to see what it’ll cost to run a truck and if you’ll even earn enough at Trappers?

Why Trappers? They’ve got incredibly high turnover. -As someone who keeps a close eye on the job boards, I see their ads on a near weekly basis and that’s far too often for a fleet their size.


If you’re serious about becoming an owner operator and growing a fleet, I suggest getting some training. Let’s Truck.com is a good source for information and courses on the business of trucking.

 

Trappers is failing. Again. Your game plan is on track to fail before you even start.

 

The $65,000 range you're willing to spend is what concerns me. Most major fleets dump their trucks when warranty expires and trade up to brand new. The PM schedules of these carriers would make any respectable owner-op cringe. You're left with all the usual problems which develop anywhere between 600-800,000km. At this mileage, you've entered into the viscous cycle of never-ending repairs. What little profit you make after paying a driver, you WILL eventually spend on future repairs.
The only successful people that grew to a fleet of trucks (that I know), ran their own authorities with good contracts from shippers, that was established by trust, over time.
My advice to you is... don't under-estimate the overhead costs involved in trucking. Your first major break-down could be your last. Most of us, don't have the advantage of interest-free, revenue % based loans from family members or church-run financial groups. Or, have relatives working for near slave-labor wages as drivers, mechanics or accountants. Banks or lease companies don't tolerate late payments or excuses about break-downs or work shortages. Shops charge an average $150/hr. and rarely give you honest service, due to the loss of proper diagnosis, making you victim to the "part-swapper" mentality most shops now have. Your taxes will become much more complicated than a trip to H&R Block, and good accountants don't work for free. Lastly, a driver can "make you or break you". That saying holds true with any employee, but it's critically important when it's applied to trucking. A true professional that respects the truck, road, rules and regulations, customers, and even themselves is extremely hard to find. When/if you do... be prepared to pay above average wages, because in the long-run, they're saving you money.

 

Start driving your own truck as an O/O with a company (research them well) - and then buy another and find a driver. Essentially the driver will only pay for the truck and maintenance...you make money on volume if you are not driving...not on one truck - some months you pay out of pocket for maintenance

 

Honestly man, your way ahead with cash in the bank than most people. Don’t do this. Keep your money there and build it up.

 

O/O is basically suicide in Canada. Just enjoy your city job, enjoy your life and forget owning trucks. The fuel, pro-rate, taxes, and cost of everything make it not worth it anymore.

 

There are lots of very successful owner operators in Canada and lots of unsuccessful ones that jumped in with both feet,no experience,no money and no idea of what the job was all about. IMO most of the ones that failed had no business being an O/O to begin with.With some common business sense , a few bucks in the bank and working for the right company there should be no reason to fail.

 

Sure, but it’s still not worth it 95% of the time.

 

Well I have to disagree.I have been an O/O for over 37 years and never found it a problem to make a good living.