How much money do you make? How green is your grass?

Don't get me wrong, the more money I can make, the better. And I want to make as much money as I can.

But, I've met some older men who have been very successful, become rich, but at the expense of always being busy working, losing their marriage, and sometimes even their health.

Rich is nice, but it too has a cost. And it isn't one that I want to pay. I'll settle for "upper middle class".

"if you are looking at a segment and your competition is fly by night 1099 outfits, your career as an o/o will be short.".............What do you mean by this?

 

I have a question. You buy new trucks, which I'm sure are sweet to drive. But you sell at 500,000 miles? That seems like a short life, and an expensive reoccurring expense. I know big trucking companies do that very same thing, as I was planning to buy a used Peterbilt from a company who does it exactly like that, but I'm sure they benefit from an economy of scale considering their size.

Why do you sell at 500,000? I'm assuming you take really good care of your stuff, so I would think your truck would still have a lot of life left to it.

Regardless, thanks very much for sharing your simple yet solid strategy of: buy new, drive for 500,000 miles while saving .30 per mile, then sell for $75,000, and combine the liquidated cash with your .30 per mile savings account to by another new truck cash.

Out of curiosity, with you using that strategy (.30 per mile allocation), what should profit (what you pay yourself as a driver) look like in terms of cents or dollars per mile for an owner operator who is doing things right? I know that the exact number will depend on so many things, but even a rough estimate is helpful. .60? 1.00? 1.50?

 

I think I understand. I know a guy who has a landscaping/sprinkler business, who doesn't do lawn cutting because that market is saturated with people who are not organized, as in they don't have a formal business, and do not have to bear the costs associated with having a legitimate business such as insurance, etc. As such, their operating costs are really low, and they are willing to do the work for low rates. Rates that are lower than what would make sense for him to accept. It is frustrating. The masses undermine themselves.

But what do you mean by "above board"?

 

Thanks for sharing. What you are saying about low rates seems to be common all over. It is sad.

Drive safe.

 

Thanks very much for the advice.

 

To everybody that has shared their wisdom and experience, thank you very much. Your comments have been constructive and very helpful for me. I appreciate yalls time and willingness to help.

 

After having gone through this entire thread, I have 2 new questions for everybody:

1. There seems to be a consensus that working below a certain rate is only going to lead to financial failure. As a general rule, what is the minimum rate an owner operator should work for. I know that that minimum rate could vary marginally by region, type of trailer hauled, etc. Please share anyway...I think it would be real interesting to see multiple perspectives, and to also compare. $1/mile? $2/mile? $3/mile?

2. Where should an Owner Operator look, if he/she is wanting to find decent rates? Where shouldn't an Owner Operator look? For example: load boards, mega carriers (SWIFT, PAM, etc.), LTL companies (UPSF, FDXF, ODFL, XPO), etc.