Prime's lease deal. The math gets done.

The CB shop analogy does not work, comparing trucking to any retail type does not work. Any retail type you and you alone are responsible for your success, not the person/people you lease from.

This is more like a franchise. My father has a "franchise" of sorts. He sells Exxon at his service station, they supply the fuel, the tanks, the pumps and the signs. He supplies the building and the people. He is at their mercy for deliveries and pricing getting a set amount of the profit no matter the price.

And he can't buy fuel from another place even if he can get it cheaper. Just like any of the L/O plans, you can't find loads outside the company you lease from. The same if you own and put it into a fleet, very few will let you find your own loads once you slap the "leased to" sign on the door.

But Prime does have a walkaway lease. Drop it at the terminal and your good. Drop it 1000 miles away and your not. Drop one you're buying anywhere and they are putting the rest of the financing on your credit - good luck financing a bag of potatoes after that.

 

But none of this (or the preceeding noise) is the point. The point is that this is one way to get into your semi-own trucking business without a large outlay of capital or a ton of credit-worthiness. The point is: You can get started. Yup, plenty of pitfalls, it can be the ruin of you if you don't have a clue. On the other hand, if you run it like a business (not just kick the tires and haul a&&) it can and does work. There are plenty of successful lease ops. It does require a good and committed partner - your fleet manager. It does require that you work hard. It does require that you do the paperwork that is required of a business on top of driving. And it sure helps to be starting when the freight cycle is swinging up in a good economy.

 

But none of this (or the preceeding noise) is the point. The point is that this is one way to get into your semi-own trucking business without a large outlay of capital or a ton of credit-worthiness.

Yea thats all we need is more people getting into things without any credit worthiness, fiscal responsibility, or savings.

Talk about noise. LOL

I had no credit when I leased 2 trucks from a truck leasing company. All they needed was someone who paid their bills a good work history and had a job to pay the lease. It cost me about 2k upfront which was carried by the company I leased 2 and deducted per my request at the end of the first quarter of operation.

You don't need a ton of credit to get a truck. You just need to be responsible enough to be a safe risk.

The Prime lease is for the irresponsible or the ones 2 lazy to check it out. Which is what Prime wants because it is quite profitable to rotate drivers in and out of a truck that is already paid for.

 

Nice point, but Prime isnt the company that leases the truck to you.

 

It's obvious that you have no idea what you're talking about just from these words...

First, Success Leasing Inc. - not affiliated with Prime Inc. as a legal entity does the leasing: From Freightliner, and subleases the trucks to the L/Os. The lease stipulates the agreement between the L/O and Prime to operate under Prime's authority.

Second, You can find the lazy and irresponsible everywhere... like the O/O I saw do a hit and run in a Flying J parking lot on a Roehl truck.

Third, Prime goes quite a way to try to ensure the success of the L/O. Whatever you say about Prime and Robert L, they do try to go the distance for us. I say that as an employee of Prime (not a recruiter, but a driver) - since it's obvious you've never worked for Prime, you're just blowing bull and writing what you know nothing about. L/Os are encouraged to attend a business class that teaches them about running their business, reviewing results, and improving their performance. And we're encouraged to attend it yearly.

Fourth, the ones that fail at this are the lazy and irresponsible. You can't succeed at being a business owner in any field that way - since you don't have this basic idea ingrained into yourself, I assume you're headed that way.

 

First, Success Leasing Inc. - not affiliated with Prime Inc. as a legal entity does the leasing: From Freightliner, and subleases the trucks to the L/Os. The lease stipulates the agreement between the L/O and Prime to operate under Prime's authority

No affiliation legally? So what? the L/O is still beholding to Prime for their success under the lease agreement since you can't take that truck to another carrier if Prime decides to starve you out.

And again I don't need to work for Prime to compare their lease to other leases.

If you think that Primes lease is beneficial then good for you. But that is probably why they need to teach you and keep you indoctrinated so your eyes won't open up and see what their lease program is. Which is a expensive way to run a truck.

 

My opinion is that trucking is a business all its own. If you get into it and have to take a carriers classes to run your business you need to think about becoming a company driver or get into another line of business. Also bigblue is right. On the outside the leasing company and Prime may not look like they are part of each other, but they will only lease you a truck that you can run at Prime...that seems strange. What if I have a company that has a proven track record of success and have all the numbers to prove it. "Sorry you can't lease a truck from us unless you lease on with Prime."

With that said, I am not a involved with Prime in any way. But just looking at the figures I was given years ago and the figures I see in the advertisments now a days I can not see how the l/o are able to make a profit. This is just my opinion though and many other companies run their businesses the same way as Prime.

 

It's not about them ''making profit''.It seems its about there idea and fantasy of ''owning a truck''.



They are not ''true'' owner operator,they are glorified company men and woman..they have ''delusions of grander''.

Hell with that being said,neither am i(lmao)..I am still leased to landstar..(NOT FOR LONG)LOL,LOL

When you have your own customers and your own ''rights'' AND YOUR OWN NUMBERS then you become a TRUE ''OWNER OPERATOR',IN THE BUSINESS OF TRUCKING.

Until that day comes we are just POSER'S,BEING LAZY AND TO #### AFRAID TO INVEST OUR MONEY INTO THE REAL IDEA AND HARD WORK IT TAKES TO BECOME A TRUE''OWNER OPERATOR''

Until you do all this and pound the pavement,knock on doors to get customers,do all your own paperwork,have all your own equipment and give it 100% DAY TO DAY then you are considered a poser in my own opinion.(me included)..LOL,LOL

I talked to one the other day....i was very impressed from this man's knowledge...

He has 10 trucks,15 trailers,a garage,own numbers and pounded the pavement for 15 years to achieve his own customers direct..He has 9 drivers and drives also.He is dedicated to his own customers and he is on call 24/7 with them.His last vacation was 4 years ago due to the fact that he has to ''service'' his customers''..There is so much involved with being a ''true owner op''...Needless to say,i was impressed..It was refreshing to no there are still small guys out there being a true owner op.

Until me and you or anyone else reaches that level of being a ''business man'' then we too can call ourselves a (owner-op)..

Until we can reach that level of pride,hard work,determination,knowledge,service and total commitment,then and only then can we call ourselves a ''true owner op''.

So for know we are just wanna-be's taking the easy way out and the safe way out...

Yes many of you will disagree with me.But it is what it is...To reach what that man has reached was pure 24/7 hard work..and total commitment on his part..Many of us as ''lease-op's'' don't have what it takes...

 

Exactly 1pod.

My point in this thread has been "the math has not been done". Even though the thread title seems to indicate that it has.

No one has yet shown me the math to be an O/O. I have owned my own business for 11 years. I can tell you that you better have ALL of your math down coming out the gate or you are setting yourself up for failure.

As far as Success leasing not being affiliated with Prime inc I find that one pretty funny. Last report I read they have the same board of directors and the same stock holders. IOW they are owned by the same people. That is hardly what I would call being at "arms length".

Again though like I said I'm quite sure it is more expensive to lease a truck than to own one. But as you put off risk the more you have to pay. I am quite sure an O/O has taken on more personal risk than an L/O.

With risk comes benefit. That is how business works.

 

My observation with a ''true O/O'' IS ....
They strike me as very smart and knowledgeable,go-getters,total commitment,hard workers,lot's of energy and ambition and they are very ''people oriented' not to mention well educated in the idea of being a ''business man''..These people i personally no and i can see how they operate and what it really takes to be a ''true O/O.''

The L/O does it for 500.00 week check.Thats there only concern..What is my bottom dollar...Nothing more nothing less...You will never get them to admit this.I will assure you...It's called (ledgends in there own mind).So the L/O in my opinion don't compare to the ''REAL DEAL''

I have been on both sides of this fence.I am at a cross roads at this point of my own life.And i am weighing out ALOT THESE DAYS OF WERE I WANNA BE.It seems i am leaning towards just being a worker and home with my family i love and adore...

Just getting tired after 20 years...