What do experienced O/O's look for in a lease?

Hiding the contract and being able to give you complete averages is a red flag. There should be no reason to not give you lease before you show up.

You really have applied blind. I guess not that big of deal but when they couldn't answer questions and it sounds like "If you are approved we will show you all that".

Having spent the last couple months hammering out a comp plan I will provide a list of all the areas that you should have answers (some you have but other can use).

- What is the line-haul pay? - If percentage, what are the averages of the fleet. What do the top 20% and bottom 20% make. This is important because you don't want to go in and learn that a new driver can never make anything near what the top 20% can make. A very large % carrier has drivers that have been doing this for decades making very good money and new drivers make less than the average mileage carrier.

- Fuel Surcharge - How is this calculated. Do not get hung-up on this if one company pays higher or lower. It is a number you need to know so that you can figure out your gross pay and adjusted gross pay (more on this later).

- Base Plates and Permits - Do they provide and pay or just provide and charge back. This can be free money. I think every O/O should be in the position to pay for plates but if the company will provide that is free money. If they are paying you need to take advantage of that and included it in your adjusted gross.

- IFTA - Who pays for this. Again, if they pay for this this then it needs to be added to your adjusted gross.

- Tolls - Are these covered. The value of this will change based on area you run but someone that pays tolls can open up new markets that you once avoided. Also, I know guys that avoid tolls increasing miles and fuel consumption. So if that is you then I would add something for this to your adjusted gross. But mostly keep that out unless you are already paying for these. Think of it as more of a bonus.

- Other Pay or Reimbursed Expenses - Scale tickets, stop pay, DH - It doesn't matter what it is but make a decision on if you add this to you adjusted gross or just put that an the list of "bonus" items.

- Weekly Expenses - Qualcomm, pre-pass, insurance, trailers. Break it down to the mile and deduct this from you adjusted gross.

- Start-up or Annual Expenses - Qualcomm install, decals, deposits. Put this as a negative on the "bonus" section.

- Fuel Discounts - What are the discounts that they provide. Figure out what that breaks out on a per mile bases and add it to you adjusted gross. Be conservative. If you get 6.5 MPG then estimate based on 6. Also if you are comparing different companies take a look at different types of freight. Pulling open deck over sized will decrease your MPG compared to pulling light UPS trailers.

- Dead Head Pay - Is this included in your % pay or do you get FSC. If you get FSC or any kind of DH pay then use a conservative estimate on what that will be on the loaded mile and add that to you adjusted gross. A company that pays FSC on DH and % is hard to find.

The next step is to figure out weekly net. Don't fall for the mileage trap. My companies are focused on better paying freight and less miles than many companies. So if you are looking at miles and someone says they will get you 3,200 but we are saying 2,700 you now need to compare these two companies getting your adjust weekly net.

Multiple the weekly miles by the adjusted gross. Then figure out what your per mile expenses will be for each carrier.

More miles will give you a lower cost per mile on your fixed expenses. And lighter loads will give you a better MPG or maybe one company has you running the Rockies and another is flat lands. (Use cash pump price because you have accounted for discounts in adjusted gross).

Now you have your adjusted net weekly for each carrier you are looking at to help you make a more informed decision.

(I may have missed something or need to clear something up. I just jammed this out real quick and will clean it up a little later)

 

Big point on this carrier or any other that doesn't discuss real numbers before they ask you to apply.

They are playing games. They understand human nature is such that once you are approved you are more likely to accept something you normally wouldn't because you want to get running. Think of it like a car dealer that gets you in the room and starts talking just payment vs. talking purchase price and interest.

HUGE red flag based on what you have described so far.

 

One of your comments I agree 100% with. Get your own plates OR have the money set aside to get them if you want to leave. But if they are going to pay for them, let them. That is around $2k in expenses that they will cover.

What area are you based in and where are you looking to run?

 

Another thing to consider is the freight base. Companies like Landstar and Mercer have huge freight bases and freight lanes, and their own customers. Running for smaller companies has advantages, true, but sometimes smaller companies will have all of their eggs in one basket. When things are jumping, that's fine. But if the basket drops, that will just about sink a small company. They try to survive on truckstop load boards, you'll be so hungry that Sally Struthers will even consider doing an informercial for you. Smaller ships are easier to maneuver, but are much quicker to sink. Eyes open. Hear or rubber checks and fuel card issues, go to self preservation mode to protect yourself and your rig.

 

The NW is a killer. But if you will run any where then all you need is the ability to get a load out. Getting back in never an issue. We have a team that is from (they live in Chattanooga now) Seattle and goes back on regular basis to see family. And this week they went back just because they wanted to be out for just a week and they knew we always had load out.

 

I am a big believer in watching HUGE red flags. Business is such that no company truly knows how many people that you know or how you can actually affect their business. Bad PR really does go a long way.

I watch what people say and do. That's the biggest indicator in business. It's the biggest red flag that will be put in front of you. I think that it is ignorant that they are making you jump through hoops to go trough all the application process, to then possibly tell you that they are paying peanuts.

When I deal with businesses that do things like, tell me that they will get back to me and never do, I remember that. BIG RED FLAG!!! It's just plain IGNORANT. That just comes down to how you will be treated there. COURTESY and DECENCY are rare things in this world today. But some people in business are just too greedy, self centered, lazy, and short sighted. But how a business presents itself says more about the person behind it than most realize. Here we have the game players.

I am the guy that goes to buy a new car in the oldest clothes that I can find. I make certain that the salesman that wouldn't deal with me sees me come back and pay cash to the salesman that was good to me. Yes, I have done this.

There are plenty of businesses and people that represent themselves as something beneficial, mostly through PR, that are not what they appear to be. I suspect you will find they are hiding something.

Foolish businesses think about what you can do for them, hence this type of rude behavior. When your are ready, let everyone know not to waste their time. That's what I will do.