more money? own authority or owner operator for company like us express?

Discussion in 'Ask An Owner Operator' started by buddyvuk, Jan 22, 2013.

  1. MNdriver

    MNdriver Road Train Member

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    depends on who you are leased to and what your lease rates are. Are you getting paid mileage (seriously foolish for an O/O to get paid by) or percentage.

    Is it 75%? 85%? what rate? I had one guy share with me how he'd pay me and when all was said and done, I would have had to have constant loads that paid $2.40 or better to just get $1.68.
     
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  3. rollin coal

    rollin coal Road Train Member

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    I suspect you'll be running a rat race for lower rates off the load boards if that's how you're looking at things, a recipe for disaster, so your best bet would be leasing on with a carrier that has consistent contract freight.... Or possibly even a flat mileage rate carrier if you can't let go of that "I need 3000 miles a week" thinking.....
     
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  4. Powder Joints

    Powder Joints Subjective Prognosticator

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    Either way it about what your willing to put into it. Go see if you can find customers on your own, try to secure this first. If you cannot secure your own customers them leasing maybe for you but you are the only one that can really answer that.
     
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  5. roshea

    roshea Road Train Member

    Having that background information helps. If you didn't like calling all over searching for loads and trying to fight for better rates, your own authority is probably not what you want. You've already seen what a pain that can be, and how much time it can consume. And if you stay at it any length of time you will almost surely end up with some broker that doesn't pay you, and you can spend an enormous amount of time trying to collect on that. Then factor in how you are going to take care of billing customers, it is like having a second job in addition to "just driving a truck". Many of us have given up our authority, for various reasons, and leased on to companies. If you work your ##### off you might make 2-3K more per month, but in the long term very possibly not. Consider how much the insurance costs is a major reason. And if you decide to take time off, you still pay all the insurance costs. Lease to a good carrier, if you take a month or two off you have little continued expense. Of particular importance, what type of equipment do you intend to operate and what area do you plan to run? Vans overall have the lowest paying freight. Flats and reefers are usually more, but there are always exceptions. Contracting directly with shippers is by far the most profitable if you have authority, but it is getting harder and harder as more shippers are contracting with 3PLs to replace their shipping coordinators. And if you have to be out there pounding the pavement trying to hook up with direct customers, well, that's time the wheels aren't turning and money is not coming in.

    If you can give us more of an idea how and where you want to work, there will be plenty of suggestions on companies to lease to that may accommodate your goals. Personally I'd recommend leasing to a good outfit for a year or two, and if you want to become in dependent after that you will at least have experienced running your own truck (and trailer perhaps) and the associated expenses. That would allow you to make a more informed decision based on your own experience, and greatly reduce expenses and risks compared to starting truck ownership along with new authority.

    Are you in a position to fully pay for a truck and trailer right now, plus maintenance reserves, or will financing be necessary?
     
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  6. BAYOU

    BAYOU Road Train Member

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    3,000 miles a week every week all 52 weeks wow not sure the last time I drove 3,000 miles in a week that sounds like fun
     
  7. 6wheeler

    6wheeler Road Train Member

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    I own my own truck and trailer, both paid for 1999. I have my own authority. If you run 2000 to 3000 miles per week you will make $3000 to $4500 after paying for fuel. I have been in business for my self for 3 years now and I would NOT work for anyone. Lease on to someone and help them make money, and let them control what freight you can haul, forget that.
    Lease on to a major company and you will only be able to haul freight through them, have your own authority and do what ever you want.
     
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  8. buddyvuk

    buddyvuk Medium Load Member

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    Thank you for all of your advice . I am capable to pay for the truck and trailer right away in full. I am in process of buying a truck and trailer/Ref. I want to start in April. Few of my friends have their own authority and the freedom they get is pretty cool but They do pay broker 12%, signing up with leasing company at first i think is a good idea. Guaranteed pay. Then after 12 months reconsider all the options . I found 100% Owner Op. company that pays 1$ per mile all miles .3500 miles per week. plus 38 cents for fuel surcharge. I dont even know how I would get that 38 cents? on fuel?
    plus NO trailer fee. They only want a tractor
    I would like to buy my own trailer.

    Where do I want to work?
    Well anywhere except California . Since I am buying 2000-2002 truck.
    I wouldnt care to drive NY and Far NE.
    Trying to figure all that right now.
     
  9. buddyvuk

    buddyvuk Medium Load Member

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    what about billing? what if someone doesnt pay??? i dont want to stress about that while driving .
     
  10. MNdriver

    MNdriver Road Train Member

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    why are you fixated on the per mile pay.

    For an O/O, that's the worst situation you can get into.

    It's not about generating miles.

    It's about generating maximum Revenue on the fewest miles possible.
     
  11. volvodriver01

    volvodriver01 Road Train Member

    I got my wife at the house for the billing of customers and I make sure to make enough money so that if one customer doesn't pay I can still survive. :biggrin_25525:
     
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