Your thoughts on a lease program

Knowing what little I do about you and your business, I think this leasing deal would serve you better as a referral-like offer to your existing o/o team versus a recruitment "benefit" or path to bring prospects to your door.

One case near and dear to yours truly: An o/o short on cash facing a major repair. Perhaps short on cash due to the sting of lesser repairs leading up to the "big one." That lease deal you propose could be one option that's attractive since doesn't lock them into F2F since you're one on a list of approved carriers to move the truck to. Not to mention the bottom-line improvements from a potentially younger, more efficient truck that could offset the burn of a new payment.

As I think you mentioned before, you could probably do better by offering only a payment escrow as a convenience and pointing that driver to a Lone Mountain or Arrow Truck Sales (or the like) preferred customer type deal. Thus avoiding an association with the more routine carrier-provided lease/owner deal. I'm sure at least both of those outfits I named would set up a streamlined program for your o/o team. After all, you have already pre-qualified them via your own vetting process in the first place.

 

From BBBLotLiz:

I have to throw in my two cents here. I did not ask to be nor want to be part of a trucking company when Bill started F2F. Let's say I came in kicking and screaming, although I love what we do now. Part of my "deal" with my husband had to do with my experience as the wife of a lease operator who made okay money, but at the great expense of our life together. I told Bill from day one that, if I were in the business, that absolutely could NOT happen to our drivers. The sanity, quality of life outside of work, and health/safety of our drivers is first and foremost in my mind. Bill and I did not start this company to make our money grinding on other human beings and, as long as we are part of this business, that will NEVER be our business model. I would suspect that to a one, our drivers would say that we have lived up to that commitment.

But I back Bill up on his statement about personal responsibility. My drivers will tell you that, when we screw up we say we are sorry, take responsibility for our actions (or lack thereof), and do what we can to make it right -- even if making it right costs us money. That is the business we are, and as long as we own it, the business we will continue to be. If an O/O joins our family of drivers, that is what I expect of them as well. Unfortunately, we have had (and will have again) the experience of the O/O that wants to blame his bad business decisions on others. To me, that sort of O/O needs to take a long hard look in the mirror. If there is a problem, start with examining your own behavior. Be honest with yourself about your own flaws. THEN work with others (your family, your carrier, etc) to fix stuff. An O/O who cannot do that is doomed to have the same experience as they sign on to carrier after carrier after carrier. To put it simply, when a problem repeats itself in your life there is one common denominator -- you.

 

Ok, so here's my thoughts on the LP thing. Just from the financial pressure it puts on guys I think it puts them at a distinct disadvantage when looking for reloads. They've got huge weekly expenses always hanging over their head. The pressure is always on to generate revenue. I've said it a thousand times and will say it a thousand more. You've got to have patience in this business and you have to be willing to park that truck from time to time. For weeks if need be. I understand not everyone is able to do that.. ..the thing is all freight moves in cycles, it goes up and comes back down, sometimes like clockwork, sometimes not... Getting a handle on financials is the biggest leg up anyone can do for themselves.. The last thing a single truck operation wants to do is be a position to where they "have to keep those wheels turning". I understand that's what makes the company money, and the driver too.. ..but with laregly spot market freight that stuff doesn't fly. Ok, I'm off my soapbox.

 

BBB maybe you should just lease the trucks yourself , and put drivers in them as company drivers. Might be less hassle than dealing with a l/p type deal. I'm sure you could get a volume discount on 10 or more , and your off to the races........


........... But I don't get out much! !

 

there are LOTS of smart drivers who are looking for an opportunity to be more than company drivers

the megas know this and exploit them

be different

 

Dam I miss working with you....

Chocolate....

Bill and I talked today for about an hour. We understand where each other are coming from.

I will state it again. I left F2F because I wanted to run reefer and I know F2F is not going to put them on in now or likely in the future.

Having said that....

Lauren and I came to an understanding. I would submit an invoice weekly that would be as close to my settlement as I saw it from my end. This would include fuel card usage, prepass, loads etc. It was my way of saying, "this is what I see from my end." She is a busy lady and doesn't have the time to babysit my accounting practices to figure this out.

RARELY would there be an issue in my settlements. I say rarely because the ones I did have, were weeks when I really didn't have a settlement and the following week a double insurance bill was taken out or skipped. Something silly like that. A quick call, some discussion about chocolate, things were fixed. Week was good again.

What has this got to do with the LP thing here?

Bill and Lauren are busy people. Bill has a great thing going with his Trucking MBA. There are things to learn there that people can grow from. I wanted to learn the nuts and bolts of running a truck.

AS I SEE IT....

As an owner / operator, be it leased or not....

We are a business owner in a service industry providing a freight relocation service. At its simplest, THAT is what this is all about. You have Assets, liabilities and Equity into it after that. (Basic general accounting). Things get complicated after that.

You've got how to get an IRP. Not really that difficult to do. Then it's IFTA, even easier to figure out. Since July of last year, I have learned all those things on my own. THAT is the discussion after my earlier comment that I wanted to have with Bill. And we did.

Bill was busy with a lot of changes over the fall. I can appreciate that. He also can't babysit a business owner all the time and carry them all the way through learning stuff. I talked with Lauren enough, and dealing with my own state, I figured out how to get my 2290 done, my IRP registration and my quarterly and annual IFTA renewal.

It really is NOT that difficult. Especially in this day and age of the interweb and online services that are provided by the various states. Wow has it gotten easy.

Having said all that.

Buying a truck is an anxiety provoking situation. Especially your FIRST truck. Akin to buying your first house. It's a major purchase. It's a life changing purchase. You are now your OWN BOSS.

That leads me to this statement....

If you are in business for yourself as a freight relocation service provider, you have all kinds of things you need to do. Including complying with state and federal regulations.

ANY company, F2F included, should NOT have to babysit you to get your BOL, Logs or other documentation in at any time. Lauren and Brooke have a level of patience for that I would never have. And they deserve every bit of praise for that they get.

Nor should a business be in a position to provide a payment service for an O/O to pay for a capital equipment purchase to a lease company.

THAT is just my personal opinion.

Bill and I discussed the OP he made.

It would totally, at some point in time, along with the rest of the Trucking MBA he is developing, make sense that a part of that would include the process, means and methods in developing a way to purchase that truck, either as a first time buyer or as an upgrade or capitol improvement to a business.

Including the opportunity costs to decide if you should by that $30,000 Freightliner vs a $60,000 KW W900. (take THAT discussion here please.)

And that brings me back to my original statement...

There are other things to consider right now than being a payment clerk for a lease company. HIGHLY over simplified statement there as well.