Being an O/O under a Carrier's Authority

Maybe I wasn't clear. My costs already include my salary. So when I say, at a 1.36 a mile I can put aside over .30cpm that is after I have paid myself and all costs to run the truck. Running under someone's authority is a means to an end for me. I keep my salary low so that i put as much money back in the business as possible. The goal is to have enough saved so that 4 years or so from now I can get out on my own authority with my own trailer.

 

The next load has me a little worried taking me to Florida. This dispatcher assures me their reloads are decent out of there. I told him I want 1.05 or higher getting out of there. The load in pays me 1.74 per mile all in. This load will bring me to a total of 4555.00 dollars on 2975 miles this pay period; about 1.53 rate per mile on all miles.

 

I pay myself 32k per year, budget fuel at 4.00 per gallon and 7 mpg, the truck is 1650 a month, my physical damage and bobtail non trucking is 235 a month, and all their deductions for communications, insurance, etc come to 100 or so per week. Short term deduction is the "performance escrow" which in reality is to sit there and cover a deductible should you mess up. The performance escrow is funded when it reaches 1500.00. I put aside .08 cpm for maintenance. I put aside .03 cpm for professional services like my accountant and miscellaneous business matters. I could pay myself much more but the goal is to put as much money as I can into the business. If I keep up the current pace I could put close to 40k into the business each year. Or I could just double my salary and show less profits but that isn't my goal. My running cost to run is .925 cpm right now but I budget 1.00 per mile currently when trying to plan things out.

 

They use brokers for most of their back hauls. Otherwise, my rate is 72% of the rate they are getting straight from the customer. They don't broker to themselves and double dip before it comes to me.

 

I'll always give things my best shot but I will NEVER come to FL again. This guy assured me he could get me 1.00 a mile on the back haul and maybe more. He left Friday without sending me the rate on this backhaul. I got the rate today and it only pays me .65 cpm all in. The total trip comes to 1.23 all in. At the end of the day I still made money but I told him I don't haul loads that end up as a net cost to pull it. I think he gets tired of me being a thorn in his side about these things. His response is usually, our other owner operators like this run; the rate in makes up for it. I honestly don't care what the "other" O/O think or I got a good rate going in. What is wrong with you and especially these other O/O that think it's fine to bleed money on a load? I didn't put it to him that way, I was more professional about it but I am just baffled and angry in the way this was handled.