Return on Investment from a one horse stable?

Discussion in 'Ask An Owner Operator' started by 94nole, Aug 15, 2007.

  1. 94nole

    94nole Light Load Member

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    I have posted several questions around this forum trying to get a good handle on how much one should be able to net with a single truck operation.

    It would be me. Just me. I'll go out and bite the bullet to get the necessary experience but as soon as possible I would like to run my own operation.

    Is there a reasonable percentage of return you expect each year, either as a percentage of your gross revenue or in actual dollars. I know this is a function of alot of variables but assume you can run 120,000 paid miles per year, how much would you expect that to return in net income for the year? Normal maintenance, flat fuel prices, etc.
     
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  3. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    In general freight hauling I would say at best after all expenses driver wages included the profit you could expect would be $3000 to $5000 a yr. If that. For a start up company be happy if you just break even for the first yr or two.

    If you can find a niche then all bets are off. Depends on what the niche is. I'm pulling the trigger on a deal that SHOULD pay to the driver (me) $100,000 a yr pre tax. The other lease ops are doing it with this small company. No reason I can either.
     
  4. 94nole

    94nole Light Load Member

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    $3000-$5000 would be breakeven in my eyes. I couldn't imagine anyone going out and investing in the necessary equipment, training, etc. for a $3000-$5000 return.

    Why would anyone take the risk of being an O/O at those numbers??

    ...sorry Brick, but somethings not adding up.
     
  5. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    After your equipment is paid for those numbers would go up. I was just stating for the first couple yrs. I don't know about after equipment is paid for.

    There are a lot of O/Os out here that are barely keeping their heads above water. I've heard the claims from many of them that if they were to take a week off for a vacation they would go broke and bankrupt. And yet they stay as an O/O. WHY???

    They don't want to be a company slave.
     
  6. Steve & Lo

    Steve & Lo Medium Load Member

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    94nole.....Remember...Brickman said AFTER driver wages and all expenses......And you can expect that number to go up after you get your dues paid...Barring any major mechanical setbacks.
     
  7. ziggystyles

    ziggystyles Road Train Member

    Steve,
    Im glad you pointed that out as I missed it myself. I thought a 3-5k was what they made...NOT the profit. I think 94 was wondering how much he / she could make in a year...if he is working for himself as an O/O, about how much would he make? If that includes his wages...what would that be as well?

    One of my possible career paths is driving for a company and then possibly down the road starting up my own little gig. But, I simply don't know how much I could make....if it would even be worth it. If I won't make anything and barely etch out a living...whats the point? But then again, if I can make a salary of 30-50k or whatever, Id be happy with that...just not too sure what to expect for what I could make.
     
  8. Brickman

    Brickman Trucker Forum STAFF Staff Member

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    For the most part 30 to 50 is on target for wages. The $3000 to $5000 I was referring to in the first yr or two was the profit at the end of the yr.
    I would be interested in seeing what some of the others numbers and experiences were. I'm just stating how it was for me.
     
  9. BearGator56

    BearGator56 "The G stands for GOOD!"

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    I think Brickman said it right. If you can find a niche, then you're golden. Starting out with just one truck, I would lease on to a carrier first. Get your feet wet until you can find that dedicated contract.

    I have a friend who got a contract with a major winery out in CA. He made a few phone calls, and got himself in. He bought two trucks, hired two drivers, and is making a killing. He could easily just sit back and let that money roll in, but he is still leased on to another carrier until more routes become available at the winery. His goal is 5-10 trucks, and he is well on his way. Even if things didn't change from the present, he would still be able to be a millionaire within 4-5 years.

    Where I live, there is a local carrier that got his foot in the door with my former company. Now, he makes a pretty good living doing their hotshots, shuttle trailers, and some backhauls.

    That's the type of thing I have been working on for some time. Trying to find the right place with the right type of freight. Dedicated contract, and cut out the middle man.
     
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