Some numbers for new O/O

Probably.
Now they say “Oil in” or some such.
They started one truck and hadn’t any oil back in it.
So i know they bought an engine for someone.
I stand by shop door and watch everything they do

 

What's up, I am looking into becoming an O/O here pretty soon. I see start up costs aren't going to be cheap but does anyone have a ballpark number I should be shooting for to be ready when it is time to buy a truck, insurance, etc.? I was also thinking about becoming a dispatcher first and then work my way into the O/O space to get to know the game a little better before I bought a truck. Is there value in dispatching first?

 

Wait until the market switches. Capacity is still too high. It'll reverse, eventually.

 

The weird part is the flip is usually a gradual thing and it's a long while before you start hearing the chatter about rates being good. So by the time you jump in and get going really well you've missed the boat.

That's in a normal cycle in a normal year. Because in a normal year in any given segment you have a few months that are good to great and a few months that suck. By the time you get your new authority up and rolling and put a few weeks behind yourself smoothing out the kinks and finding a good rhythm all the good freight everyone WAS talking about is gone and you're in the slow part of the year wondering what all the excitement was about.

I always figured any time was a good time to get in, IF you've got the cash to get up and going and weather any issues... get in now and you'll be in on the uptick.. wait and you're gonna miss the boat..

 

I'd also add, try to find some direct customers too. Don't just rely on brokers for everything. I know guys who are and have been humming along busy as can be making great money for the past 2 years and the one thing they all have in common is the rarely if ever book anything from a broker. It ain't for nothing they're called brokers they'll #### sure help make you go broke if you let them.

 

Thanks for the feedback! I am still at least 6 months away from having the funds to actually buy the truck. Right now I am in my learning phases. Is there a normal time frame when things usually start to slow down? How would I go about finding a direct customer? In the meantime while things are moving slow, are there other ways people have been able to make money using their truck for things other than hauling goods?

 

You know how you get calls for a dispatch service every 2 hours. Shippers are getting those from us now. I have heard automated phone intros saying no new carriers or brokerages at this time. It’s a tough time to be a broker or carrier…Better off being a repo man these days..,

 

My monthly fixed expenses are $$3,745.72 before the truck is ever started.
My insurance maybe a bit higher than some, but it’s right at $21,000/year, but that’s 2 trucks and 2 trailers.
But for your first year in business, expect 15-20k for insurance for 1 truck/1 trailer,
Just some numbers, and I don’t hav any truck payments, but do have 2 trailer payments counted in that fixed cost.

 

How long has it been this way? I've heard that it will pick back up at some point according to a lot of the articles I have been reading.